Question about JV/royalty stuff

6 replies
I've gotten some inquiries about writing copy at a discount in exchange for revenue share. What should I look for (or shy away from) when partnering on this stuff?

Thanks in advance,
Melissa
#jv or royalty #question #stuff
  • Profile picture of the author BrianMcLeod
    First and foremost, those most likely to seek this type of "performance" arrangement are typically the least likely to execute professionally on the campaign or generate enough properly targeted traffic to make the math work - and guess who gets screwed there?

    You're rolling cold dice on whether or not you'll ever see any significant royalties materialize...

    That said...

    It's much easier nowadays to collect your money as it comes in through the sales platforms like JVZoo, Clickbank, W+, etc. You're not reliant on the client's bookkeeping or waiting for checks to (eventually) arrive because your piece comes off the top of every sale.

    This is advantageous even when you're not earning out a performance deal. For example, it's really simple for a publisher to set you up as a JV/Equity Partner for 3-5% of gross sales. You get paid the same as Paypal, JVZoo, Clickbank, etc. It's clean, easy and equitable.

    BUT...

    You're on the hook for your percentage of all refunds. Can your clients deliver an excellent customer experience? You're banking on their ability to keep the buyer happy and refunds low.

    This is where you get to be an effective entrepreneur and correctly gauge the risks and rewards of any given opportunity.
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    • Profile picture of the author mellymags
      Originally Posted by BrianMcLeod View Post

      First and foremost, those most likely to seek this type of "performance" arrangement are typically the least likely to execute professionally on the campaign or generate enough properly targeted traffic to make the math work - and guess who gets screwed there?

      You're rolling cold dice on whether or not you'll ever see any significant royalties materialize...

      That said...

      It's much easier nowadays to collect your money as it comes in through the sales platforms like JVZoo, Clickbank, W+, etc. You're not reliant on the client's bookkeeping or waiting for checks to (eventually) arrive because your piece comes off the top of every sale.

      This is advantageous even when you're not earning out a performance deal. For example, it's really simple for a publisher to set you up as a JV/Equity Partner for 3-5% of gross sales. You get paid the same as Paypal, JVZoo, Clickbank, etc. It's clean, easy and equitable.

      BUT...

      You're on the hook for your percentage of all refunds. Can your clients deliver an excellent customer experience? You're banking on their ability to keep the buyer happy and refunds low.

      This is where you get to be an effective entrepreneur and correctly gauge the risks and rewards of any given opportunity.
      Wow, thank you so much for a thorough answer. Many factors to consider. I've been copywriting for a couple years now and haven't been screwed yet... Hoping to ride that trend for as long as possible.

      Melissa
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      • Profile picture of the author Alex Cohen
        Originally Posted by mellymags View Post

        Wow, thank you so much for a thorough answer. Many factors to consider. I've been copywriting for a couple years now and haven't been screwed yet... Hoping to ride that trend for as long as possible.

        Melissa
        Take special note of Brian's comment about traffic.

        If your prospective partner doesn't have a viable traffic generation plan and/or isn't willing to pay for significant traffic, run the other way. Sorry to say, I learned that lesson the hard way.

        Alex
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    • Profile picture of the author Mark Pescetti
      Originally Posted by BrianMcLeod View Post

      This is where you get to be an effective entrepreneur and correctly gauge the risks and rewards of any given opportunity.
      Great stuff Brian.

      I'll chime in here - since I'm focusing more and more on backend deals.

      Firstly, I ALWAYS ask for front end. No exceptions.

      Secondly, contracts are great, but it comes down to a gut-feeling for me. If I feel like I can trust someone, I'll move forward. If I don't have a clear feeling about trust, it's not for me.

      The third thing is...

      Try to work with people with a track record of effective marketing. Because newbies might genuinely have the best of intentions, but without PROOF of knowing what they're doing, you're going to spend a lot of time on something that'll likely frustrate you to death.

      And let's not forget...

      Make sure they have their infrastructure sorted (i.e. video and design crew.) It's exhausting to take on the role of project manager and getting a solid team organized - when that's not really your job.

      Mark
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  • It's funny you should mention it because I'm trying to figure out if I should go ahead with one of these offers now.

    It's really hard to say, honestly.

    Like Mark said above, it comes down to your gut feeling.

    If you think there's a very good chance you can trust them, it could be an easy way to make some recurrent income that keeps rolling in.

    Otherwise, you might just be asking to get taken advantage of.

    I once read something by Ryan Healy on this topic that I found really interesting.

    He said basically that he doesn't accept royalty offers...

    ... Not because of trust issues or anything like that, just because there's always a reasonable chance the person will never use your copy at all. In that situation, even if your JV partner had the best intentions in the world, you still won't see a penny!

    Something to think about.
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  • Profile picture of the author mellymags
    thanks guys. It was a hard decision but based on this feedback I had to turn down being a partner on that project.

    ~ M
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