Drug testing

100% of Nothing

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 makes sense. However, most of the people who take this position do so because they think it is 'not fair' that someone else 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 all 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.

Copyright Cathy Stucker. As the Idea Lady, Cathy Stucker can help you attract customers and make yourself famous with inexpensive and free marketing ideas. Get free marketing strategies, articles and more at http://www.IdeaLady.com/.

limousine chicago service
In The News:

Is Running a Business for You?

Not everyone is cut out to run a business. Not... Read More

Have You Been Thinking About Owning Your Own Business? Or Becoming An Entrepreneur? Part 1

Almost every day, I talk with people who want to... Read More

Entrepreneurial Business Plan The Down And Dirty Way

Does the idea of running your own business sound exciting?... Read More

Drive Website Traffic Unconventionally, Force Your Children To Do It

If you believe that every little bit helps then keep... Read More

What Makes a Person an Entrepreneur?

Entrepreneurship is generally characterized by some type of innovation, a... Read More

Oil Change Guys History; Part III

Studying the history of franchise companies is interesting is watching... Read More

The Deal is in the Details

What Startups Need to Get a Business Loan, Part 2In... Read More

The Dirty Dozen

1) No Umbrella Business Plan or Strategy -- Without a... Read More

10 Ways Entrepreneurs Shoot Themselves In The Foot

Entrepreneurs and their businesses have a tendency to ambush themselves... Read More

Questions For The Entrepreneur To Be

Entrepreneurial e-gnorancePart 1: Questions for the entrepreneur to beIf you... Read More

Entrepreneurs Just Get Better With Age

Q: I'm thinking about starting a business after I retire... Read More

Enterprising Route is to Go Your Own Way

DON'T talk to me about education for entrepreneurs. They're pouring... Read More

History of Enterprise Car Rentals

So few really understand the drives and motivations of entrepreneurs.... Read More

Two Types of Business Plan Executive Summaries

Companies seeking capital often ask how long the Executive Summary... Read More

Empathy - Not Business Plans - Key to Your Home Based Business Success - Do You Have Empathy?

EMPATHY is a Natural Talent, you were born with it... Read More

Protect Your ASSets in Business

Many people are starting an online business without a thought... Read More

Franchises - A Proven Business System

Franchises offer the first time business owner a proven and... Read More

The Term Sheet?s Role in Raising Venture Capital

Entrepreneurs and companies who are seeking venture capital often negotiate... Read More

The Heroic Entrepreneur: Profiting from Your Brilliance

If you look up the definition of hero in Webster's,... Read More

Walt Disneys Failures Could Inspire Entrepreneurs

You are a struggling entrepreneur and sometimes it feels like... Read More

The History of the Franchise Business - Learning about Business Opportunities by Looking at the Past

Hair care has been around as long as humans have... Read More

Evaluating an Opportunity

Business opportunities are often based on broad trends, such as:?... Read More

Hurricane Katrina, Death, and a Different Type of Entrepreneurship

I've seen terrible images today on the television and internet-bodies... Read More

Increasing Business BIGTIME with a Successful Referral System

What I've discovered from most of my small business clients... Read More

Designing a Comprehensive Franchise Company Computer System

One of the most important management tools a franchised company... Read More

garage induction lights top led manufacturers Pete's produce ..