Why choose a revenue share model?
Incentives are powerful.
Implementing the wrong incentives can have negative results for all parties. But put the right ones in place and you get a healthy, long-term partnership that all parties are invested in.
Lots of marketing agencies work on either a retainer, or a percentage of advertising spend model.
The former means that a company gets paid the same each month, regardless of whether they have underperformed, and the latter means that companies are penalised for increasing their marketing spend.
We believe a revenue-share model is a better way. Although it’s riskier for us as we don’t get paid if we don’t generate results, it also means that the company is happier to pay us as they’ve already seen the past month’s results, and we as an agency are invested in that company’s future.
How does it work?
If your application to work with The Ecommerce Profits is successful, then at the beginning of each month you’ll pay us a percentage of the increased revenue that we generated for you during the previous month.
For example, if on average your business has been generating $20,000 per month, and after the first month of working together, the business earns $25,000, then our fee for that month is a percentage of the extra $5,000 in revenue you earned.
Eligibility
Revenue shares are not suitable for every business. To ensure a long-term, profitable relationship for both parties, we have to be extremely selective with the companies we take on.
- You must have a Facebook/Instagram advertising budget of at least $5,000 per month at the minimum
- You must Allow us full access to your reporting systems (not just the Facebook Ads platform) in order that we’re able to verify your business revenue on an ongoing basis
- You must have been in business for at least 12 months with a verifiable revenue stream (any shorter than this, and we’re not able to gauge an accurate level of revenue)
Most importantly, you should be invested for the long-term. If you can’t see us working together in a few years’ time, then a revenue share model is probably not for you.
If you’re not eligible, or don’t feel comfortable with a revenue share model, then that’s ok. We can still work together, but we’ll do so in the traditional manner – with a monthly management fee plus a percentage of ad spend.
Great, so what should I do next?
If you have any questions about how we would manage your Facebook and Instagram ads, or you have a question about the revenue share model, then just get in touch!
You can do so using the button below, the Contact Us page or by emailing nelson@theecommerceprofits.com