Are you torn between revenue shares and fixed fees in your B2B partnerships? Let’s dive into the pros and cons:
🤝 Revenue Share Agreements:
- Pro: Encourages mutual growth – “a rising tide lifts all ships”
- Pro: Creates skin in the game, boosting partnership success
- Con: Lacks guaranteed Annual Recurring Revenue (ARR)
đź’Ľ Predetermined Flat Fees:
- Pro: Offers predictable, forecastable revenue
- Con: Caps upside potential if partnership exceeds expectations
- Con: May make the relationship more transactional
🔑 The Key to Success:
- Define clear goals for both parties
- Engage in honest, open dialogue
- For fixed fees, consider short terms with annual reviews
Remember, there’s no one-size-fits-all solution. The best model aligns with your specific partnership goals and dynamics.
Need help crafting the perfect commercial model for your partnerships? Let’s connect and explore the possibilities together!
