Three strategies to determine how to compensate joint

venture partners

When 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 Client Attraction 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.

Fabienne Fredrickson, The Client Attraction Mentor, is founder of the Client Attraction System,

the proven step-by-step program that shows you exactly how to attract more clients, in record

time...guaranteed. To get your F.R.E.E. Audio CD by mail and receive her weekly marketing &

success mindset articles on attracting more high-paying clients and dramatically increasing your

income, visit http://attractclients.com