1 – LONG-Term Focus
Any decent digital marketer has tricks up their sleeve to drive quick revenue which helps builds client cash flow and means investing time and patience into developing longer-term marketing strategies. Some of the reasons why to Revenue Share are:
- Excellent and/or strategic messaging that promotes direct sales, which may help the brand in the process
- Heavy discounts that boost sales that increase cash flows and profitability
- Taking credit for success from branded keywords (i.e. users that were already searching for the brand)
- Converting customers who were already close to conversion into their funnel with Re-targeting Strategies
The list goes on, but the point is – when an agency’s paycheck depends entirely on how much revenue they generate, they are far more committed and invest in long-term strategies.
2 – Risk Minimization
When an agency’s paycheck depends on the revenue they create, the agency will stick to methods that guarantee a consistent return. Which means that we will work hard not only for us but for you as well.
3 – Revenue Is Not True Upside
Cash-flow is great, but true upside takes the form of equity. For an agency to share in the risk of marketing its client, it should, in fairness, share in the reward (i.e. the increased value of the business).