I am continually asked how much I charge for my Internet Marketing Services: do I charge per hour or per strategy that I implement? The answer is that I prefer to be paid if I increase my clients sales and I like it when there is pay for performance so the more you make the more I make.
There are a lot of misconceptions of participation so the first thing that needs to be done is to define some of the terms that are used when talking about Joint Venturing/Participatory Pricing.
Joint Venture-When two or more entities share in the profits.
Participation-Sharing in the profit from an endeavor with others
Commission-Pay for performance compensation structure
Draw-Advance payment of commissions expected to be earned
Generally, I get paid a draw against a percentage of future gross earnings that that are attributable to my efforts.
The client usually will give me the monthly gross sales numbers for the previous year. I will only be paid if I increase the monthly sales numbers (I will allow for a natural increase in those numbers).
Please call me if you have any questions about joint venturing or participatory pricing.