Revenue Share Hybrid?

Author

Tim Tavender
October 25, 2024 • Estimated Reading Time: 5 minutes

In partnership with

For a number of years now I have been a strong advocate of revenue share deals.

This is where you take a slice of the revenue you help your partners create.

There are a lot of nuances to these deals and I dicuss them with some of the leading experts out there on my summit - (https://summit.remarkablecreators.com)

One of the most common barriers to more people doing these deals surrounds the security in having a fixed fee retainer coming in.

I get it, I still have these arrangements.

But let me ask you a question...

What if there is another way?

(Before we dive in, a word from our sponsor - LOL)

Use AI as Your Personal Assistant

Ready to embrace a new era of task delegation?

HubSpot’s highly anticipated AI Task Delegation Playbook is your key to supercharging your productivity and saving precious time.

Learn how to integrate AI technology into your processes, allowing you to optimize resource allocation and maximize output with precision and ease.

Back to the “other way”…

One type of deal I have done in the past involves both a fee and a performance element.

You might find this type of arrange with copywriters who get an ongoing percentage of sales made through assets they create, say like in a sales page. They take a fee for the sales page then a percentage (royalties) on an ongoing basis.

One of my event speakers Kim Krause-Schwalm has been paid royalties on a sales page for 11 years now. She was paid for the original project as a fee then built in a commission.

Every now and again she can tweak something to make improvements but the client will still use it as it performs better than the other pages they’ve tried. Win win.

For me, I have a revenue share partner that I was paid to set his course and funnel up and then take a percentage for the monthly marketing of the course and the ongoing sales.

I like this model as it can cover your time for building the business asset which the client keeps forever and then you are motivated financially to grow it together

That is a win win.

I'm defitinely going to do more of this kind of deal moving forward. It has the perfect mix of both parties having skin in the game to push forward and make the collaboration a success.

The times in the past when I haven’t done this is due to the opportunity being aligned with my perfect partner avatar. In this case I am happy to put more skin in the game for a higher revenue share or equity split.

If your offer is more based on your intellectual property (IP) then you could offer your initial report or audit as a fee based project. Then helping the client to implement it could be based on performance.

Another way you could do this was shared by Chris Mason in our chat recently.

His philosophy is that you can have a paying fee based client right now that may have opportunities that they haven't yet explored. If you present those opportunities to them, you can do that part as revenue share. (or profit share as Chris does)

That way you still have your secure retainer and can also benefit from exponential income.

For example, you might see a client only emails their list once a month. You can offer to take care of it for a share of the revenue or profit.

If you want to hear that conversation then I will send it to you as a thank you for sending one more subscriber my way - you can do that here:

Thanks for reading - see you next time.

And dont forget to tell me how you get on. I love to hear stories.

Tim