Joint Ventures - How Much to Charge
Joint Ventures - How Much to Charge
For example, when people attend a DollarMakers Joint Venture Broker Bootcamp, I pay the referring Members up to 50% in commissions! My cost of putting an extra chair into a Bootcamp and a few extra cups of coffee and donuts, plus a workbook, is negligible. I can afford to be generous. My DollarMakers Joint Venture Forum Members earn thousands in commissions every month. But if I was selling computer hardware, with a profit of around 6%, I could afford to pay such a generous commission. Large profit margins demand high commissions; real business people understand that. And there are other ways to reciprocate, other than financially – but that’s a subject for another newsletter or the Bootcamp.
A realtor approached me with the typical offer: “Send me a buyer or a seller and I will pay you $75 for a completed sale.” So you get $7,000 and you expect me to accept $75? Are you kidding me? I’ll take 50% of the realtor’s commission or no deal. Am I being greedy? No – I pay 50% and so can they. If you don’t ask, you won’t get. Desperate realtors will not agree to this, but the smart realtor who has built in multiple Joint Venture back end sales into every transaction will jump at the opportunity. 50% of something is better than 100% of nothing. It’s business they would never have had. When you show them how much business that one deal can generate over the years and the Marginal Net Worth of a customer, they might see the light. If they don’t, send them on a Joint Venture Bootcamp!
Most entrepreneurs don’t understand their acquisition cost, attrition rate, profit margins, back end value or Joint Ventures. That’s why they feel they have to grab every up front cent they can. When they understand the big picture and they want to create increasing, multiple streams of passive income, they will become generous in their referral fees and commissions. I personally don’t accept anything less than 20%, but it all depends on the big picture, margins, reciprocal consideration and value. Remember the big picture and demand to be paid a fair amount or walk away. There are many opportunities out there but very few people who understand Joint Ventures, so you can call the shots.
Find out more about Joint Ventures and how to find great Joint Ventures Partners at www.jvwisdom.com.
Joint Ventures How Much to Charge - To learn more about this author, visit Robin Elliott's Website.
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How much should you make from a Joint Venture? 10%? 20%? 50%? Should it be of the net or gross profit or off the top? How do you decide? This is an important consideration, especially for people who are used to paying peanuts and those who are used to accepting a few crumbs. Entrepreneurs who understand business and profit are more likely to pay and demand reasonable commissions.
For example, when people attend a DollarMakers Joint Venture Broker Bootcamp, I pay the referring Members up to 50% in commissions! My cost of putting an extra chair into a Bootcamp and a few extra cups of coffee and donuts, plus a workbook, is negligible. I can afford to be generous. My DollarMakers Joint Venture Forum Members earn thousands in commissions every month. But if I was selling computer hardware, with a profit of around 6%, I could afford to pay such a generous commission. Large profit margins demand high commissions; real business people understand that. And there are other ways to reciprocate, other than financially – but that’s a subject for another newsletter or the Bootcamp.
A realtor approached me with the typical offer: “Send me a buyer or a seller and I will pay you $75 for a completed sale.” So you get $7,000 and you expect me to accept $75? Are you kidding me? I’ll take 50% of the realtor’s commission or no deal. Am I being greedy? No – I pay 50% and so can they. If you don’t ask, you won’t get. Desperate realtors will not agree to this, but the smart realtor who has built in multiple Joint Venture back end sales into every transaction will jump at the opportunity. 50% of something is better than 100% of nothing. It’s business they would never have had. When you show them how much business that one deal can generate over the years and the Marginal Net Worth of a customer, they might see the light. If they don’t, send them on a Joint Venture Bootcamp!
Most entrepreneurs don’t understand their acquisition cost, attrition rate, profit margins, back end value or Joint Ventures. That’s why they feel they have to grab every up front cent they can. When they understand the big picture and they want to create increasing, multiple streams of passive income, they will become generous in their referral fees and commissions. I personally don’t accept anything less than 20%, but it all depends on the big picture, margins, reciprocal consideration and value. Remember the big picture and demand to be paid a fair amount or walk away. There are many opportunities out there but very few people who understand Joint Ventures, so you can call the shots.
Find out more about Joint Ventures and how to find great Joint Ventures Partners at www.jvwisdom.com.
Joint Ventures How Much to Charge - To learn more about this author, visit Robin Elliott's Website.
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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