There are many different ways to reward a partner that drives new sales and supports your company's growth. One of the most popular is to share a percentage of the revenue that is generated by the relationship. Certain deals will require very specific revenue amounts to be shared which ultimately will be the primary benefit the partner sees in the relationship.
There are many different ways to reward a partner that drives new sales and supports your company's growth. One of the most popular is to share a percentage of the revenue that is generated by the relationship. Certain deals will require very specific revenue amounts to be shared which ultimately will be the primary benefit the partner sees in the relationship. Other times your business may be able to offer additional benefits that can reduce the need for revenue sharing or eliminate it altogether. The following are some of the pros and cons to a revenue share in a business partnership.
Pros of Revenue Shares in Business Partnerships
There are many pros and cons concerning using a revenue share as part of any business partnership. As long as both partners clearly understand what incentives are included in the relationship for each to honor in the agreement then things will work out well. Keep communication open and discuss any issues around potential revenue shares so that the additional money doesn’t adversely impact the relationship.
What Type of Marketing Referral Program is Best for Your Business
To understand what type of marketing referral program is best for your business, it may be vital to first understand where referrals can come from in the first place.When Your Referral Rewards Program Goes Wrong
The horror stories are enough to scare any small business owner into inactivity. That one business that was doing great with an excess of capital decided to enact a new referral program and the next news you heard was how they overextended their offer and were swept up and down the creek into bankruptcy. It can and does happen. When your referral rewards program goes wrong there can be a few good reasons why.4 Tips for Preparing Your Business for Referrals Programs
If you have established your business, set up some marketing efforts and branded your company's name, it may be time to prepare your business for referrals programs.