James Schramko here. Today, I’m going to talk about strategic partnerships and how you can make them work. Back when I started online, I made a few partnerships and I usually did a 50/50 deal and it seemed OK in my mind. I guess I would like to have that support and someone to be friends with me and go through this experience and I kind of hoped that they would actually carry a bit for me and sometimes I found that they weren’t great partners and the partnerships didn’t go anywhere.
So, it was easy to form a 50/50 partnership of nothing and then when it turned into nothing then it broke up. The other partnership that I did as a 50/50 turned into a difficult scenario because I ended up doing all the heavy lifting. I ended up contributing about 99 percent of the customers to our venture and did about three-quarters of the work and when I tried to re-calibrate the percentage of the partnership, there was a no go with the communication. So, I ended that partnership as well.
These days, the partnerships that I’m looking to do, they’re kind of counter-intuitive. I usually partner with someone else’s business and I don’t want ownership, I don’t want to be shareholder, I don’t need to be a director. I don’t need to have any financial saying in their business. All I want to do is have a percentage of the upside revenue from where they’ve got the business to by themselves. In other words, I might take say 10 percent of their revenue over where they go from here. Let’s say they’re doing a million dollars a year and then they go to two million dollars a year then I will get 10 percent of that extra million dollars. So, I’ll end up with a hundred thousand dollars and guess what they end up with? They get nine hundred thousand dollars more and they own their business so they’ve got all that ego, they’ve got all that decision-making control; it’s their business. So, I’m taking a small piece of their business and it’s all written in an agreement and it’s easy to understand.
I call these rev-share deals. I will be teaching about this later but these are turning into great deals because I’m now a little stakeholder in other people’s ventures but my portfolio is my business and so now I have great protection from market forces, I have a fantastic way that I can deliver my experience in a win-win scenario. It’s good for my partner, it’s good for me and life is fantastic. So that’s my preferred partnership these days is the rev-share deal.
If you want to find out more about it then please comment or respond where you see this video and let me know because I might even put a course out on this topic. I’ve been doing this behind the scenes. I’ve been getting really good at them and my students are making great money with this too. So, more to come on this topic.
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