Revenue Share Marketing
Joint ventures and revenue share campaigns
Our revenue share program is reserved for businesses that are unique, scalable, and have big growth plans for the future. It’s far more like a joint venture than using a digital marketing agency. This program is a huge benefit to your cash flow and your risk of marketing failing, as you're being paid by customers before you pay us our %.
Agency vs ad spend revenue share
Our revenue share campaigns mean that we are covering the cost of either our service costs, or your marketing spend, or both in return for a % of the revenue that your receive from the customers we help deliver.
This means we will be working for free, and potentially also paying for your ad spend costs. When you get a client, and that client pays you, we will invoice you our agreed %.
The real answer is whatever is a win/win for both parties, a balance between enough to make us excited to take on the campaign, without eating into your profitability too much.
Variables that can influence this include the length of your sales cycle and the margins you have to operate with.
In the interest of transparency, our guide is 10% when clients are paying for ad spend, or 30% if we’re paying for ad spend.
This would suit most service-based businesses and consultants.
If your margins on delivery of your service can’t support this, the first question might be whether you’re charging enough for the service. Often it’s not the quality of the service, but the message and marketing that is impacting what you can charge.
However, everything is unique to you and your situation.
In fact, we don’t ask for anything – it’s up to you what you’re willing to share and incentivise us with – but we think 30% is fair for our value and the risk we take off you, and the cash flow benefits to your business if we are covering all marketing costs.
What about existing revenue or referrals?
We do not charge our % when revenue existed before we became a partner or if the revenue is from a referral or personal network. Usually, this is easy to track via our advanced tracking methods, but we trust you if you say you know them and would have converted them without us.
If you have any other requests for exclusions feel free to ask and we can chat through it.
Who should (and shouldn’t) do this?
Sharing revenue is not for everyone, most are not comfortable with us growing in parallel to them if it goes really well.
A revenue share campaign means we’re sharing access to financials, and solving problems together at every stage of getting the sale. If you’re not comfortable sharing access to financials, this isn’t for you.
However, some people are more than happy to share – and recognise that if this goes well they’ll be paying us far more than our standard fees. But they also recognise that they wouldn’t have achieved those results without us, and we took a lot of risk and made a lot of sacrifices in the early part of the campaign to get them where they are.
This type of person is who revenue share suits, if you’re not coming in with that mindset this won’t work out.
Criteria we look for in a partner
Apart from a long-term mindset, the below are items we look for in a business we can really help:
- You are good at helping your clients and have a proven service. If you have issues with retention or negative reviews, then there are potential problems that good marketing can’t fix
- You’re in an industry that is going to grow in the future, we don’t want to do this type of relationship with DVD rentals – we’re good, but not that good…
- You’re able to move quickly, we don’t want to be held up with approvals and red tape all the time
- You’re open to suggestions – we don’t want to do this relationship with someone too stuck in their ways and not willing to have an open discussion about different strategies.
- Ideally you sell a high transaction value product or service, or alternatively, you have a high lifetime customer value. If a new customer is worth less than $10,000 to your business, then your margins would need to be very high for customer acquisition at scale via paid traffic to work.
- We have to believe in your product or service. We’re not going to do this for something we don’t think is providing a good service to the world.
What kind of impact could we have on your business?Get in touch