Business Model Based on Percentage of Revenue Growth


Joined
Jul 18, 2012
Messages
57
As a Full Time Local and Organic SEO for 5 years now, I've helped companies bring in 1000% returns on marketing, execute exit strategies, saved them from going out of business and everything in between...

I've been thinking a lot recently, based on results, about adding a Profit Sharing Model that can help some businesses get started for Less and allow me to share in the success of the business.

From the local business owner's perspective this is attractive in that:
1. Less out of pocket marketing expense up front (what keeps many from even getting started with online marketing)
2. Many will think I'll work even harder since the more they make, the more I'll make.

From my perspective:
1. Will create a recurring revenue stream that will grow each month
2. Less up front capital and more risk taken by me, but more return on the back end (since I only take on clients I know I can help based on thorough research)

Hurdles:
1. Tracking - Can track form fill outs and sometimes phone #s, but that doesn't tell who became clients and at what pricepoints. Would need a relationship with each company's accountant to establish baseline, track growth and send checks (and assume the accountant is trustworthy)

Anyone have experience with a similar model that's working? Feel free to Private Message or contact me directly through website if you don't want to share here.

Thanks - I'll hang up and listen :D
 

Linda Buquet

Moderator
Joined
Jun 28, 2012
Messages
14,438
Thanks Scott, great question and I'm anxious to hear the answers.

(Since this is about pricing and local search business models, I moved to Consultant's Corner.)
 

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