biz-model for JV: promoting client services

An intelligent JV approach here could be based on:

Lead Generation

• Talk to them about how much business they need/can handle.
• Let them know that you intend to help them get clients.
• Be clear on both ends and be sure that they really are comfortable with the idea.
• Setup a pay-per-lead model with them, where they pay you a certain amount for every lead that you generate.
• Negotiate the price of the lead, but it makes sense to start low so that you can prove yourself.
• Once you start bringing in the leads, bump up per lead price.
• Don't forget to do an agreement. Paperwork matters.

Hope this helps!

- Mustafa

In addition to getting paid for leads, negotiate commissions on sales. If the value of a tax-consulting job with your client is $5,000, you could negotiate a 10% commission. You don't see $500 commissions in many affiliate networks.

I'm doing this with 3 local businesses. In fact, I only get paid for sales; not leads. It's been spectacularly lucrative.

Mustafa is right that you want all the details spelled out in writing. I negotiated my biggest deal over a 3 to 4 month period and then drew up contracts. It's a long term deal that is generating thousands in commissions each month for me and tens of thousands in fees for my clients.

This is a truly win/win opportunity.

Before you negotiate a deal, find out the value of each type of customer your client seeks. I negotiated a variety of commissions for each type of referral and set it out in writing.

Consider incorporating the following types of commissions:

• Up front referral fee per sale.
• backend fee being a % of the sale.
• bonus fees when you hit a particular sales volume/# of referrals each month.
• monthly consulting fee for you agreeing to exclusively market for them in the area.
• lead gen fees.

If you have a client who is interested in a JV like this, I couldn't recommend it more strongly. It's a tremendous opportunity. Good luck.

thanks. that's great help.
indeed the problem is that some clients are not interested in paying for leads, but only for customers.

How about a customer that becomes a repeat customer? do you ask for a commission on the first invoice only? all invoices? during a period ? Some customers will do nothing for a while, than get a small service, and months later a bigger one...

i'm trying to nail down the magic formula to apply...
many tnx.

As per repeat customers, I'd opt for just a one time invoice. You don't want to appear to be a white elephant, you can look at repeat customers as more of a bonus for your clients which in turn will keep them motivated to work with you...