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Chose a revenue share partner over a flat fee retainer in February, and I'm still doing the math on it
Back in February I had two agencies asking to partner with me on a referral basis and I could only take one. One offered me a flat $2,500 a month retainer to be their go-to overflow partner, and the other wanted a straight 70/30 split on whatever work came through. I went with the revenue share because the volume looked better on paper, like 8 to 10 jobs a month was possible. Four months in I've done 19 jobs with them and cleared about $9,400, which beats the retainer some months but not all. The flip side is I have zero control over when their leads come in, so April was dead and this month I'm slammed. Has anyone here run a split like this long term? Trying to figure out if I should go back and ask for a hybrid deal.
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quinn_green4927d ago
19 jobs in four months is actually solid volume, but the feast or famine thing is the real killer with straight splits. I ran a 65/35 with a design shop for almost two years and the dead weeks were brutal because I still had rent and software bills coming due whether their leads showed up or not. What saved me was going back at the six month mark and asking for a $1,200 floor plus a lower split, like 55/45, once I hit a certain number of jobs. They went for it because they still got the overflow help without paying full retainer. Your April wipeout is your best argument here, walk in with those numbers and show them the gap between your best and worst months. A hybrid keeps them from bleeding cash in slow months while you get something steady. Worst case they say no and you at least know where you stand before you sink another six months in.
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