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Thread: Revenue Sharing

  1. #1
    SitePoint Wizard silver trophy
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    Revenue Sharing

    A colleague mentioned revenue sharing to me. Does anyone take on clients based solely on revenue sharing? What kind of percentage is normal?

    I have a client or two that I would love to offer ongoing marketing and maintenance to as a revenue sharing program, but don't know what % is reasonable. 2%, 5%, or more?

    Any thoughts?

  2. #2
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    If my job was to get more traffic to the site and I was asked to consider payment by commission, then I'd be expect to be paid based on the amount of (targeted) traffic I get there, not on how much profits the company makes, because that contains too many variables out of my control.

    I've never done this, but calculations would depend on the type of site and the type of existing traffic they get. For example, if they got 300 visitors a day and I permanently increased this to 400 a day, I'd want £xx each month for those extra 100 visitors (and £xx more for each extra 100 I manage to get). £xx would be calculated based on what an average visitor is worth (probably based on the conversion rate and average order size etc).

  3. #3
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    That makes sense, and would be easily tracked. I'm not sure too many companies would give you access to thier order information anyway. Thanks

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    SitePoint Zealot chihpih's Avatar
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    i am considering taking a client with a revenue sharing as payment. i would pretty much handle all the web stuff (design, hosting, marketing, maintenance) while the client manages the inventory. 40-60% would be what i would try to get.
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  5. #5
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    Why not just let him make you a full-blown partner? If I was doing all the work, and making 1/2 of the profits, I would also want a say in the day to day decisions - especially ones that could affect those orders.

  6. #6
    SitePoint Zealot chihpih's Avatar
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    thats what i mean, i will be a 40-60% partner in the company.

    i have another situation where a friend of mine is is opening a VOIP company. i want to help him and be involved but only if i have a % in the company. voip is hot right now and the company blows up i want to have a secure place in it
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