Cathy Stucker - The Idea Lady

Attract Customers and Make Yourself Famous

  • Home
  • Blog
  • Shop
  • Work with Cathy
  • About
You are here: Home / Marketing / 100% of Nothing

100% of Nothing

April 11, 2017 by Cathy Stucker

What would it be worth to you to receive a steady stream of new customers with little or no effort on your part? Would you be willing to pay 10% of the revenue they generate? 20%? 50%? Or do you believe that you can’t afford to pay anything?

During a recent discussion, I was surprised that people said they could not afford to ‘give up’ 20% in commissions to reach new customers. If you have more work than you can handle, that might make sense. However, most of the people who take this position do so because they think it is ‘not fair’ that someone else would get a percentage of the money they believe is theirs. My question is: Would you rather have 100% of nothing, or a smaller percentage of something?

I have taught courses at several places where my compensation was a revenue share. Typically, I received 50% or less–often much less–of the fees the students paid. Many instructors think this is unfair. After all, if they are presenting the course, shouldn’t they get the bulk of the money paid by students?

Break down what is actually involved in making the course happen, and it makes more sense. The sponsor provides a place to present the course, lists it in their catalog and does other marketing (a big expense), takes registrations (including absorbing credit card fees) and handles student questions and issues. I could do these tasks, but they take time and money. Plus, I don’t enjoy them. I prefer to use my resources on the part I enjoy most and do best–presenting a great course.

Instead of worrying about someone else also making money from ‘my’ course, I look for ways to increase the income I generate, including publicizing the class to attract more students, providing a required or optional text for an additional fee, and keeping in touch with students after the course so that they can become long-term customers.

When offered a commission or revenue-sharing arrangement, consider the following:

Do you have more of the product than you are currently selling, or the ability to create more? Do you have time to provide additional services?

Will your pricing accommodate paying a percentage of revenue to someone who will refer clients to you? If not, maybe your rates are set too low.

What does it currently cost you (in time and money) to get a client? If you spend little money but lots of time, don’t forget the value of that time. Wouldn’t it be better to increase your billable hours, even if you only net 80% of your regular rate for those additional hours?

What else will you get from the relationship? Perhaps you will gain visibility from the referrer’s web site, newsletter or catalog. The clients referred to you may become repeat customers who do business with you for years to come (and depending on your arrangement, you may only pay commissions on the deal referred directly to you, not repeat business).

Don’t overlook the value of having partners to help you grow your business.

print

Related Posts :

Make Money with Affiliate Marketing
Get Referrals from Competitors

Filed Under: Marketing, Running Your Business Tagged With: commissions, referrals

Search

Join Me! (Get Free Stuff!)

Get useful tips and techniques to build your business, plus member-only exclusives such as free webinars, as an IdeaLady Insider. It's free!

I respect your privacy & will NEVER sell, rent or share your email address. More than a policy, it's my Privacy Pledge.

Connect with Cathy

 Facebook Google+ Twitter YouTube Pinterest LinkedIn Flickr StumbleUpon RSS Amazon Author Central

Recent Articles

  • The Short but Powerful Guide to Finding Your Passion
  • 3 Strategies for Quick & Easy Content Creation
  • What to Ask When Hiring a Ghostwriter
  • Take a Real Break – Fully Disengage
  • You Get an Extra Day

Categories

Be an Expert Blogging Business Start Ups Cash Content Copywriting Creating Information Products Creative Ideas Creative Marketing Strategies Creativity Customer Service Customer Testimonials Dealing with Clients Email Getting Things Done Growing Your Business Guest Posts Image Internet Marketing Life Lessons Making Changes Making Good Decisions Marketing Market Research Monday Morning Messages Money and Finances Motivation and Inspiration Mystery Shopping Networking Online Business Passive Income Persuasion Positive Thinking Pricing Productivity and Time Management Publicity Public Speaking Reputation Management Running Your Business Sales Search Engine Optimization Social Media Success Technology Working Smarter Writing and Publishing

Learn About

Mystery Shopping
Book Publishing
Marketing
Becoming an Expert
Free Publicity

Return to top of page

Copyright © 1998 - 2023 Cathy Stucker - All Rights Reserved