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 Now the Right Time to Become An Entrepreneur?

A number of economic changes are magnifying the role of... Read More

The Power Of Personal Environments

I've got to admit, I'm a big fan of comfort.... Read More

5 Habits Of Successful Entrepreneurs

Habits get a bum rap. When you think about your... Read More

Six Steps to Guarantee Your Business Success

Many of us slave away for years for one uninspiring... Read More

Innovation incubator: Build it and keep it running

If your company is like the one I work for,... Read More

The Secrets to Becoming a Successful Creative Entrepreneur: JJK Secrets #19-21

Hello Creative Entrepreneurs!Welcome to the e-class on Creativity & Entrepreneurship:... Read More

Herb Filled Pillows Make Over a Million Dollars

Lauren Rosenstadt was a single mom working at a herbcompany... Read More

Getting Rich Isnt a Bad Idea

You've seen plenty of articles claiming to offer you the... Read More

How Home-Based Business Entrepreneurs Think

Too many people are trying to start their home businesses... Read More

The Entrepreneurs Dilemma

In business, you plan to protect your inventory, your unique... Read More

The Deal is in the Details

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

What is Entrepreneurship?

In discussing entrepreneurship and writing articles on the subject, I... Read More

Financial Issues in Business Startup

A primary inhibitor of business start-up is that few people... Read More

Online Women Entrepreneurs Need To Pace Themselves

Saving time means pacing yourself, being organized, and always prioritizing... Read More

Business Ideas

Richard Branson, billionaire founder of Virgin Records and Virgin Atlantic... Read More

Hearing That Entrepreneurial Voice?

Women business owners are our only clients, so naturally we... Read More

Top 10 Business Plan Myths of Solo Entrepreneurs

Don't let these stop you from having a business plan... Read More

Do You Have What it Takes to be a Successful Entrepreneur?

Print off this page, take the quiz and find out... Read More

Become a Recognized Authority in Your Field - in 60 Days or Less!

You don't have to be rock-star famous before you are... Read More

Entrepreneurship Story; Over Regulation in Franchising Final Chapter

Sally and Jim have launched their automotive franchise business and... Read More

The Magic of Thinking Small

Hey!Many of you might disagree and I'm prepared for that.Many... Read More

Can a Microbusiness Help You Enjoy a Better Retirement?

Not having enough money for a comfortable retirement tops the... Read More

Creativity & Entrepreneurship: The Creative Evolution of an Intellectual Property?

In each of us, there is a creative spark -... Read More

Before the Business Plan

Purveyors of conventional wisdom would have you believe that the... Read More

How To Start a New Business

While it is tempting to just leap into a new... Read More

commercial led lighting products household led bulbs Pete's produce ..