Fabienne Fredrickson

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Three strategies to determine how to compensate joint venture partners

paying-joint-venture-partnersWhen you are looking to build your business working with joint venture partners, compensation depends on what type of program you are promoting. There is a difference in what you should pay for private coaching as an example vs. passive income products like a home study kit.

1. Private Coaching. With private coaching, you have to do all the work when you get the referral, so the compensation is usually lower for your partner – around 10%. When I was doing mostly private coaching, I didn’t actually offer a fee, but there were coaches who did offer me the 10% commission if I brought them clients.

If you are new to coaching and are working to ramp up and fill your practice, you might want to reach out to joint venture partners as one of your referral sources. Finding businesses who serve the same target as you do can be a very powerful marketing tool.

2. Passive Income. On the other hand, when you are doing passive income products you have already done all the work. The product has been created and is ready to sell. In this case what you need most is exposure to get more sales. That’s why you reward your partner more richly for their sales effort on something that doesn’t need any additional effort on your part. The fee is often much higher for ebooks and home study programs and can be as lofty as 60-75%.

Many information products are sold by affiliate program with a highly attractive commission fee to maximize the number of prospects who see it. Your profit comes from the volume sold, rather than worrying about each individual sale.

3. Group Programs. The third option is working with joint venture partners to sell a group program. You often would promote and conduct a call together, then sell the group program to your partner’s list. For this arrangement, the fee is somewhere in the middle, maybe 30% to 50%. Even though you’ll be running the promoted program alone after the joint call, the number of attendees is much greater than you could ever get on your own, so it’s worth sharing the profits.

Your The Leveraged Business Assignment
How can you decide how much you will pay for a new client? Simply ask yourself the question, “What am I willing to pay? Would I pay $100?” Most people would answer yes to that. Then push the envelope and ask yourself if you’d pay $1,000. Depending on what your fee structure, that might be way too steep a cut for a joint venture partner. Figure out what is in your comfort zone and try it for a while. See how it works. You’ll discover if this is enough to motivate partners to send you referrals and if it provides the income you want.

joint venture partnersNow, if you’re just starting out and trying to fill your practice in the FIRST place, then follow a step-by-step system that feels easy and authentic to you. The Leveraged Business  System® gives you the most important things to do to set up simple, solid systems, so that you consistently fill your pipeline and continually get new clients. It’s all step-by-step, not a big mishmash of things. So, you do step one of the system, and when you’re done with that, you move on to step two, and so on. All the tools, scripts, templates, and examples are handed to you on a silver platter. Easy. You can get it at TheClientAttractionSystem.com.

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