So, as you know, I'm all about Work Less, Make More. And the thing I like about these deals is, they are a little less job-like than some of the other business models that you can do. We've really been putting out the dynamite with these trainings and I think this one is similarly important and it's definitely part of my portfolio. That's why I like to teach things that I'm actually doing.

So, I'm a practitioner, and then I'm teaching this as the by-product. This is my first run at teaching this on a larger scale than one-to-one. There's a good chance that this training will be the seedling for a course or a book. I have already tested this out by training some SilverCircle members. And they have been getting deals, which is great.

It's certainly where I'm focusing my energy and I'm very excited about what's happening. Some of the other members in SilverCircle, I think there's is six or seven other members who I've successfully coached through this idea and they have either made a deal or they're close to it.

Now, some of the lessons learned in deal making I've carried from a long way back. Recently, you may have seen an email from me where I found the key for my first car, which I bought when I was 12 years old. And that was a three-way partnership, which we all invested $33 each. And then years later, we sold that car and split the profits.

So, some of the things that I've learnt along the way have taken me most of my lifetime to learn and I'm going to try and share the key points with you today. No pun intended. In short, what I'm talking about is a performance-based income model. And note, this will only work if you're actually good at something or if you have some kind of asset and I'll talk about that in a little more detail.

It is not a business model if you are faking it till you make it, OK? You will be wanting to try some other business model if you're still not quite strong in what you do. The stronger you are, the better this will work for you. And you should also know that performance-based income can be up and down. It's not consistent.

So, this is not appealing to people who have a more communistic approach to business, you know, where everyone should have an equal share and that thing should be fair and even and consistent and steady. So, if you have no appetite for change, or the uncertainty factor of this is scary for you, this is not the business model for you.

If, however, you're really good at what you do and you can help other people, there is great potential upside and everyone can win from this sort of business deal. Commission-only is another way to look at it. Now, there are ways to make it where you're not just getting commission and I'll explain those. But for the most part, these are commission-only deals.

And when I was thinking back about how I've ended up doing these deals, from around about 1995 through to about 2000 and something, 2001, I was commission-only with a very small base in the car dealership. My base salary was something like $23,000. And then I had to make the other hundred thousand or 120 of it with commission. It was basically down to my performance at making sales.

So, I've spent many, many years in a commission environment. And of course, even as a management leader, our whole dealership was performance-based and I'm comfortable with that. So, it's no wonder I've been attracted to these deals. The reason I call it a royalty deal is you earn a percentage royalty for helping a business grow.

Now, percentage here, I know it's already going to raise some questions and I'm going to cover that too. This is just one way to do the deal. I want to point this out. There's no black and white rule book on this. This is not as clear cut as some other business models. Even when you're selling your own information products or selling your own services, you get to set your own rates.

It's no different when you're making these deals. There is a large degree of flexibility. What I do is I help people to get to beyond where they got to already. OK, that's what I do. And it's a very simple way of thinking about it. Now, what percentage? I'm going to get asked this, so I'll just cover it now. From my research.

I've found that some of these royalties could be three to seven percent for low-margin business like ecommerce because we're talking about revenue, not profit. If you have an ecommerce business, they might only make 20 percent profit. So, if you're going to take 20 percent as your fee, they wouldn't make any money at all. And that's not going to last.

So, 3 to 7% on a low profit margin business might be more acceptable. If it's a higher margin business like an information business or an agency or a Software as a Service (SaaS), there's a very good chance you'd be somewhere in the 10 to 20 % range. I would say a pretty safe number will be somewhere around 7 to 10 %.

Like, between these two is going to be a very easy number for you to ask for. If you find businesses that have a 30, 40, 50 % profit margin and they are out there, then 10% of that is not too much for them to pay you to have more than what they're having now.

This is a fairly low risk for the business owner because generally they're paying you out of money they don't have right now, and it's a pretty easy argument to put forward. And in fact, this works really well with the more conservative of the partnerships. If you ever encounter a husband-and-wife team or there's a fairly nervous business, this is the key point to make - that it's a low risk for them.

They're never going to pay you unless they make more than what they're making now. It's a controllable risk for you because you're going to have some diagnostic filtering before you take on these deals that will help you mitigate your risk. And you'll only accept deals where you can win. And that's very important. OK, and I'm going to cover that as well.

It's quite easy to understand this kind of deal once you figure out what it actually is. And hopefully you're already getting a good feel for what this business model is based on what I've said. They only pay you when they make more.
And you only get paid if they make more. That's the essential rundown of what this kind of business model is and why it might be an interesting business model.

Now, we're going to have a look at some different ways that things could be structured and dig a bit deeper into why I like this. There are also reverse revenue share deals. Now, this is just a slight twist on it. And this is where it's your business and you own the asset and then you bring in the expert or the talent to help you out with that business and you pay them a percentage of revenue.OK.

Just keep that tool in your tool kit because that can come in handy and we've already seen that happen where someone tried to get a revenue share deal and it worked out initially but then it collapsed through a mistake that I'll help you avoid making.

And then it was decided to go into that market but as an owner and then we brought in talent for this customer and basically, they own the whole business and they're paying a percentage to a talent. So, you can do these in reverse. It's a pretty cool concept once you grasp that.

They're simple but not easy. And as I cover the next part of this presentation, you might see why this is the case.

I went and spoke to authentic experts.

I'd heard about this kind of deal before. I've seen it in other industries. We know copywriters often do this, they might get paid for a job and they might get a royalty based on how the sales letter performs.

I had seen my grandfather have a timber brokerage and he used to get paid three percent of sales. Whatever the sales amount he brokered, he got three percent. I think Jay Abraham was talking about this. I definitely had a conversation with his business partner Spike, about this a few years ago, six or seven, maybe eight years ago. And then about two years ago, I was chatting to Jay Abraham on the phone. He asked me for a favor with something. And he was very grateful. I helped him out.

And he sent me his private recordings of workshops and his high-ticket events, ones he charged $25,000 for. And he said to me, if he could give me any tips that he would have told himself earlier was, a customer who pays $25,000 for a workshop would have been a better revenue share deal over the lifetime of that deal.

It could have been worth $25,000 a lot more often, like 250 grand or two and a half million dollars if he took a percentage of the revenue of what he'd been able to help that customer with.

So, I took that to heart and started putting my focus on that and I asked around for my friends. I found a software developer who does these. I found a business coach who does them. I found a customer of mine who was doing them more as a business optimization from the copy/sales funnel side of things. And there was at least one other.

And I got all their agreements and I interviewed them all about the pros and cons and what they've learned and I mashed it all together and came up with my formula.

My Schramko Revenue Share Formula, which I've now put to good use on multiple occasions and I've learned each time I do a deal, I learn something about it and then in practice, they've actually worked out well. I've actually gone past two years now with one of the first ones that I put into play and it's been seamless. There's many more last year I added so I'm continuing this focus.

So, I researched all their deals and I made my own version of what the agreement would look like and then I paid a lawyer to make it work properly. I explained what I'm trying to achieve and what the pros and cons are and the things I wanted to have covered.

And I spent thousands of dollars on that initial agreement, which formed the baseline agreement. That is the starting document that I use now for deals like this. And today, we'll go through the main elements that you will want to have covered on your agreement.

Now an agreement doesn't have to be tricky. An agreement could be written on a beer coaster. A contract could be as simple as I owe you, you know, and an amount and signed. It could be just a big piece of paper with, you know, putting down the various parties and what you're agreeing on and how much, etc. like a sales receipt. So, you don't have to get too complex. Mine are very simple. They're only a few pages long and it is an important part of this kind of deal because that's the basis that you'll need to lean on for getting paid and understanding what would happen if people don't do what they're supposed to do, etc.

Let's talk about the different ways you can set these deals up. Some people like profit share models versus revenue share. Often people when they're talking about revenue share deals or when I'm talking about, they start thinking profit.

But I think profit is a difficult one because most business owners operate personal expenses through their business. I mean, it's kind of common. Certainly, a lot of people are pretty sloppy with their bookkeeping and a bit cheeky with their tax reporting and I want to state from my perspective, I'm pretty clean cut.

I draw a wage from my business and my personal living expenses are paid for my personal account. And the wage is enough to cover that. If I want to take money from the business, I call it drawings and it's accounted for. Now, other people do crazy stuff, you know, like they're putting their shopping through the business and all this.

So, profit can actually whittle down through no fault of your own as a business growth expert. The profit could be reduced, or what happens when the client decides to go on a business conference to the Bahamas or they want to buy a brand-new computer at the end of tax year for $35,000 or they get a company car on a lease and then they drain the profit that way?

This is going to impact your payment. Now the thing about revenue is, excuse my French here, but it's kind of unf***with-able. It is hard to manipulate revenue. It's a pretty cold number. That's the amount you make. And I would just tune that slightly and say allow for refunds. So, if a company makes X number of sales and then they have X number of refunds, and a good company that's going to be a minuscule amount like mine less than one percent a year and that's usually administration or refunds, that's just someone forgot to cancel or whatever or they paid twice that happens sometimes, like they've joined twice.

So that counts the refund. The business owner shouldn't have to pay you for money they didn't get. So, its net revenue. Revenue less refunds is the amount. So that's actual money banked not internet math revenue, you know, when they do a launch and they count the launch made $2 million but they're talking about before refunds and if people do their payment plan, which is crazy stuff.

So, I'm talking actual money banked. That's why I like revenue over profit. You could do ownership versus revenue share. This is very common. And I did lots of these in the beginning. If you go back 12 years ago, I did a few 50/50 deals. Have you ever done a 50/50 deal?

I did them in the beginning because it's easy for me to communicate and make deals and I saw people had products or services and I thought it'd be good to go into.

Some of the downsides there. It gets a bit complex in terms of who owns the assets, like who's got the domain name, who's database account are we going to use? The original version of the forum SuperFastBusiness was called SuperFastResults.

And by the way, big high five. We've gone past 10 years since SuperFastResults opened its doors. And it was a 50/50 deal. Now luckily for me, it was my domain that we used. And it was my CRM system we used and my cart that we used.

And later, the business after four years, I had to change the way the business was done because we couldn't agree on a redistribution. The 50/50 deal didn't work out. It became lopsided.

And if you look at things like, a lot of the business partnerships out there in the press, or even marriages, a good chunk of them don't work out. I'd say probably at least half and that's because you might be at the same place when you start.

But certainly, life adjusts and people move in different patterns and they don't always last. We're not moving the same pace. One of the partners gets married or has a divorce, or wants to have kids, or the pressure's too much and they want to travel the world, or they want to get out of ecommerce and go into new tropics or whatever.

So that's why a lot of them fracture, and then it can be awkward. Unless you do it the sort of more expensive and difficult way of setting up a company and unit trusts, and lawyering and accounting and getting it all tight, in the beginning, you're not even sure if there's much of a thing happening.

A lot of these tend to be at startup phase. Now, if someone's already got an established business, then they have to cut you in as a partner and you have to agree on a value.

You have to like; how much is the company worth and what's your cut? Now, funny story, you may know my business name, J-Six Solutions and the Schramko Family Trust.

You've probably seen one of those on a receipt at some point. That business was formed when I was offered a 50 percent stake in a motorcycle multi-franchise. This guy had three or four dealerships.

He had Suzuki, Honda, Yamaha and Kawasaki franchises and he offered me half of it, and I was going to come in and get signed over for half the business. So, I set up all these businesses.

I've spent, I think eight grand on accounting and legal fees and doing research and in the end, my accountant said, "You cannot go into business with this guy. He's got a development company and he could, at any minute, those debts could suck you dry.

They could cross-collateralize and just basically bankrupt the company, and you'd become a bankrupt as well." So, there's some pretty nasty side effects for cross-collateralizing the business.

So, you've got to be really careful about these ownerships. It's really good to be an owner and to be on equal footing and it can work. And I've seen a couple of pairs, I think Joe and Matt from EvergreenProfits, they come to mind as a pretty good partnership. But gee, I've seen a lot that don't work.

The thing about the revenue share deal is it lets the owner stay in charge of their business. I'm not trying to wedge myself into the action. I'm saying, "Hey, it's your business. You be the boss. They're your assets. It's all yours, baby. I'm just going to help you out with your mission."

And that dynamic changes the relationships so significantly because they are interested in growing their business and I'm interested in them growing their business because I'm a beneficiary now. Can you see the different viewpoint that creates? And of course, you get less risk of debts and loans and administration and tax returns. And a bit of support for my moves.

Yes. It can get messy quickly. So, I mean, I've done a lot of 50/50s. Funny story, sitting on my desk here is a ClickBank check that I got this week and it kind of cracked me up because this is one of the first deals that I made. It was, gosh, I think probably 2005 or 2006. I would have put this together sometime around then.

I did a 50/50 deal with my acting coach and I said, "Al, you know how to act. You could film a training course. And I'll do all the website and the sales page and all that sort of stuff." I didn't realize that publishers make all the money. The publisher should make most of the money, the talent shouldn't make that much. Also, I made some terrible mistakes.

I picked a market where they have absolutely no money. So, you know, like actors are waiting in cafes, they just, they can't even afford to live, let alone buy a course, but we sold a couple of courses and then nothing. And I took the site offline like five years ago and someone bought just a little while ago, a few weeks back, someone actually bought the course.

I don't know how or where they bought it from. I got in touch with them and sent them the actual download because it's not even in a cart. I have no idea how they got it. And the check came. And this check, it's like $29 or something. It's in my drawer here in my desk and it'll cost me $15 to bank this check. Like just a reminder that some partnerships just aren't going to be that great.

OK, so can you do revenue share deals with startup businesses? Yes, you can. And I've done a great startup business revenue share deal. I'll talk about this but I found someone with great talent and genius, and I pretty much created the vehicle for our rev share deal. I more or less came up with the concept and named it and then let them run with it.

So, I pretty much gave him the business idea and concept and said, "Let's do this. But you do it. Like grab it with both hands and run with it. And I'll just nestle up there on a rev share deal. And the better we go the better we go." And we started from zero and it's been a great deal. Really happy with it.

There's a service fee vs. royalty. I mean, this is what most of us are doing. I certainly do it with SuperFastBusiness and SilverCircle. And that's where people pay money. I mean, I still consider what I do as performance-based. I think someone's going to leave if they're not getting a result. This is what you should absolutely focus on: getting a customer result.

But I don't think a lot of business owners, or certainly a lot of educators, aren't so focused on getting results for clients. The service fee will actually suit someone where they have customers who don't implement or get a great result. And there's many courses out there that I would venture to say that would have less than 10 percent success rate, you know, single-digit percentages.

Some of these are certainly business opportunity courses will have a pretty low completion rate and, you know, even other things. So, if you want a guarantee to get paid and you want a fixed income, service fee is a great business model. It's just that I think it's a little more certain for you in terms of you know what you're getting paid and as I said I still do this model. It's still the bulk of my income.

But less residual income. Generally, people won't last as long. So, when I'm looking at a revenue share deal, I'm really looking at a long, long term. I'd like to be revenue share partners with my rev share partners for like 10 years. And that sounds crazy, right? But the average SuperFastBusiness member stays 38 months.

SilverCircle, I've also got incredible retention and that's great, but my revenue share partner deals, I think they'll eclipse that. I think they'll go on for a long time because we work well together because of some of the things I'm about to share with you.

Retainer plus royalty. This is another way to do it. Some of the people I interviewed do this one. They get paid a fee plus a royalty. That's like the old copywriting one. They got paid to write a sales letter. And then they got paid on performance. There're a couple things I don't like about them.

One is they're quite job-like because now you are getting a set fee. That's kind of a bit more job-y. And that's something I like to avoid. And secondly, these are the ones where they said they didn't get paid. They often didn't get paid, where there's resentment builds up from their customer over time, because they feel like they're paying for something that they're not getting, especially if you plan on coasting a bit, if you want to get paid a fee.

Let's say you think that you bring $100,000 worth of value to a customer and it turns out they're paying you monthly installments of 10 grand and then they're paying a royalty on top. Like, after you've delivered your big whopping value and, in your mind, you're just getting paid on park payments. In their mind, you work for the first month and then you've been coasting for the next 11.

And they'll usually quit. And then there's sometimes hassles around the buyout. So, just know that the retainer plus is sort of a half a foot in the camp between the fee for service versus a rev share deal. OK. Now, I like to think of this as portfolio investing. I like to build rev share deals as my portfolio. I think of myself as an IP investor.

So, I don't have to invest money but I'm investing my time and energy and my intellectual property at my know-how, my experience. My resource is available to me, my database, my contacts rolodex. These are things I can bring to the table. And I believe this is going to be the way that I semi-retire because it's the least job-like function.

It's a little less job-like than a fee for service, because everyone knows it's performance-based. If I'm not performing, I don't get paid. So, if I do something magical that helps the company get paid a lot more in the future than what it's been paid, then everyone's still happy because it's worked out that way.

I think they tend to work better over the long term. So, I'm taking a long term focus here. And you've got to look for partners who you could be in business with for a long time. This is not a short-term strategy, especially because there will be some up-front issues, especially you're going to need legal documents and you're going to have to do a little bit of to and fro with your potential partners. So, let's talk about that.

The first thing is to tell people you do this. Don't keep it a secret. When people come through my sales page, they go through SuperFastBusiness and they're on a high income, they'll end up getting a SilverCircle option. On the SilverCircle option, it says, "The fee is $3,000 per month or we might look at a revenue share deal." So, at that point, I've opened the gate to the possibility.

And some of my recent revenue share deals have come straight through the SilverCircle funnels. So, my point here is feed from existing paths. Whatever your current path is to get fee for service customers or to find business partners, it might be the same for revenue share. It's just a product option for you.

So, they could have A, B or C. And then you need to make sure you have the filtering options. In terms of how you can make it attractive for someone, like why would someone consider a rev share deal over a straight fee for service? Well, we talked about a few already that they're only paying you if they go better. So, it's pretty low risk for them.

Some would say it's a bit higher risk for you because you're not guaranteed to get paid no matter how they implement. The other thing that I like to do is I dig deeper integration. If I'm going to do a revenue share deal, if I'm getting a residual income for a long time, it allows me to invest more in this relationship.

I can do things that I wouldn't do for a straight coaching client. I might do a share of a social media thing or I might host someone on my podcast if they're a client, sure. But if they're a revenue share partner and we're effectively in business together, then I might now start building out auto responders in the back end of my CRM. I might have regular podcast shows.

I might have my team work on things that they need help with because I'm going to be a beneficiary. It really does bias me towards their success so that's why it's good for both of us. So, feed from existing paths. You can have more committed promotions because there's more payoff for you. Think about this too, I have this unique situation in my world where if I start promoting something, other people start promoting it.

If I start promoting ThriveCart, other people start promoting ThriveCart. So, I get an initial affiliate sales lift and then I create a bunch of competitors for myself. Now, if I was in a rev share with ThriveCart, which I'm not, but if I was, then now I could promote ThriveCart but I could also introduce my previous competitors to ThriveCart and say, "You should promote this product as an affiliate."

And now, my pie is getting bigger and my cut increases. So, instead of having competitors, you can now become allies with people out in the marketplace. So, if you can basically be an affiliate for the entire business rather than just what you bring to it that works well if you happen to have their customers.

Books, you can wire them into your books, you can have them speak at your event, you can host them on your podcast, you can put them on your products page or your recommended page. You can provide all sorts of support that you might into if it's just a regular deal.

You could create a club. Over time, I'm turning SilverCircle into my rev share club. If you didn't have SilverCircle, you could create a revenue share club for your portfolio of customers. Let's say you decide to get ten revenue share customers and you'd like each customer working out at about $1,000 a month. That'd be ten grand a month.

And if they were all non-competitive, and we'll cover why, then you could actually host them together to help each other and all power up together and be stronger. And that's the effect that we have inside SilverCircle is people are communicating with each other and getting stronger.

So, you've got to filter the right deals. I mean, this is the absolute critical thing. The first thing to do is to do an inventory of what assets you have, like, what can you bring to the table? If you're not bringing the checkbook, what are you bringing? In my case, I can bring experience, I can bring my database, I can bring industry contacts, and I can bring my team.

There's a lot of things I can bring to the table. So, I can really help a customer get exposure or distribution and save them making mistakes. Spot talent early. As soon as I know someone's going to be a rocket ship, and I've seen this before, I'm good at spotting talent. I feel like I spotted Ezra Firestone very early.

He's the most extreme actually because he went from a couple of hundred grand a year to decamillions a year. $30, $40, $50 million a year whatever the number is these days. It's pretty spectacular. James Dyson, I spotted early. From this kid selling $27 graphics to millionaire software developer.

Clay Collins, also the same. And so, I try and line up with people who are going places and help them because I'm really good at that. I've actually found my sweet spot now is I can help someone who's in the earlier years get to the later years' level of success much quicker.

Ryan Levesque is another one. I saw him go from a million dollars a year to $10 million a year. So, there's plenty of them. Tom Breeze. I'm helping Molly Pittman now. I'm helping some more seasoned online marketers as well to just do some really cool stuff.

I saw a post recently from Pat Flynn so I can share this where he brought in his own team now because up until this year, he was using a service. So, I've helped him organize and bring that in. That's a great example of like a sort of thing that happens at a high-level business that doesn't happen when you're a solopreneur.

So, get in early if you can. They'd be great partners to have on rev share because they're going places. You know, if I'd got in early on some of those, if you'd like, like those stocks, you know, getting on the elevator at the ground floor. If you can spot them get in there.

Now, I wasn't doing revenue share deals for those customers and some of them aren't there anymore in my immediate sort of payment capture system but I built up great resources and assets and reputation from being associated with them, and now on the next generation I'll make sure I'm more of a stronger stakeholder.

I'm watching guys like John Lint and Jarrod Robinson and Clint Paddison, you know, really paving ways in their own industry and I'm pleased to be helping with those sort of things. So, get to know them first. This is really important. Definitely do your research. Go and do the usual Googles, you know, for reviews and scam. You do not want to go into a deal with someone with a tainted reputation.

It will be the end of you. Don't do it. You've got to be picky because this is a much tighter relationship than just a straight up coaching one. I mean, I wouldn't recommend you go into business with anyone who's potentially going to bring you down. Preservation is very important. That's kind of a Warren Buffett thing.

Can you help them? You've got to be honest about this. If you can't help them, you have no business striking up one of these deals. Even if you can get it, you shouldn't. You've got to be confident that you can help them. Do you know them well? Like as a person, have you ever seen them socially? Have you experienced how they follow up? Have you spoken to some of their customers?

Do you trust them? Ultimately, they're going to be able to decide if they pay you or not. And I have had some slow payers from my other business deals and it can be frustrating but the revenue share side of it, it's been 100 percent so far in multiple years. So, I've picked well because I've learned from the past.

Do they fit your customer profile? Like for me, it's an easy win to bolt on a business or a service that I'm already sending business to. Do I send them business already? You know, I'd love to have revenue share deals with all my key suppliers who I send business to every single month because I'm already doing it.

And it makes sense for both of us. And then I can integrate them more deeply into my funnel. And I can formalize it. I can get resources from them that I present to customers at the right part of my auto responders. I can host special content events and things like that just with that person that I couldn't justify ordinarily.

Have you done a business audit? It'd be good to do a little snapshot of their P and L. When I'm coaching, I get to see a fair bit of detail about what sort of team do they have, what sort of systems they have, what sort of costs do they have, how they're running that business, were does the traffic come from, have they done any kind of survey or research on their buyers' challenges, what sort of history have they had before.

These are all things that would help me to be able to know if I can help them and to see if they're going to be a good fit. Can you deliver quick wins? Usually, I'm very excited because I know the next three or four things that I can do to help this business straight out of the gate. And we all get paid quickly, which is exciting.

And this is quite often the case. We'll just switch it on. And is there one decision maker? Ideally, I don't want to deal with a committee. I don't want to deal with a big company because they tend to be bureaucratic and frustrating.
I like to have a decision maker. And you're going to find out if you have this or not through the deal making phase.

So, let me just transition into - I'm going to give you a super solid warning here. Watch out for desperate. The desperate candidate is the one you must avoid at all costs. These are easy to get, but you don't want them. OK? Like some people just throw them at you.

Like you've probably seen those movies with rock concerts where they have super fans who just try and jump on the stage, you don't want that deal partner because there's something wrong, they're going to place too much expectation on you. So, getting paid. This is a huge issue. It could be. You have to protect yourself here. And of course, you've done the work. You've brought the value. You should get paid.

So, simple formula is revenue net of refunds the month after. That's a simple way to deal with it. So, let's say the following month you look back from the month prior, you get some kind of report. Maybe it'll come from a shopping cart. Maybe it'll be from Xero. Maybe they sent it on a spreadsheet if you trust them a lot and you can have a look at the stats and then you do up an invoice.

You send over the invoice and they pay you. Now, I've got some help on my side of it with that. When my partner sends the stats across, there's a girl on my team who does my bookkeeping. She will make the invoice and create a support ticket and send the invoice and track the payment.

And then if it's not happening, if she doesn't get the invoice or she doesn't get the payment, she will flag it with me. So, I don't have to constantly look it up or worry about bad debts because I know I've got someone on the job. Now I'm going to share with you some potential red flags. These are potential red flags to look out for. The good news is that if you can get better than like five or six Mbps internet, you can definitely have an online business.

So, one red flag, it's just too easy. It's running too smoothly. It seems a bit set up. It's just not quite right. I would expect a few prickles along the way. Because otherwise, maybe they're not understanding what's happening. Maybe they're not understanding the deal. Maybe they're not asking enough questions that show you that they are a prudent business owner. I don't mind when they're sort of showing me some questions or concerned about a couple of things.

That means they care about their business and that they've got a good sense of what's happening. You know, it's like if people sign up for something and they don't know what they're signing up and they don't ask questions and then later on, it really just turns into a mess. So, don't let people buy too easily.

What happens if the business is sold? This could happen. So, you want to cover yourself for that. You want to want to put into the agreement what happens if the business is sold? Generally, this would trigger a payout for you. It might be related to the sales multiple. So, often, luckily for us, business sales are calculated from a methodology of multiples of profit. So, for example, a very typical business sale multiple might be 24 months of profit.

So, maybe if the business is sold, you get paid 24 months of your commission averaged over the last six months. So that might be a fair methodology. What if they don't pay you? So, you would probably want to build into your agreement something that might happen if they don't pay you, you know. They are making an agreement, they would now be bound to pay you and that could probably give you some legal standing.

You never ever want to get to this, which is why you must filter very carefully in the first place. Now, if you don't think they're going to pay you or if you go into business with someone who hasn't already paid you for something that will be a sign. So, don't do it because life's too short to be chasing bad debts. They fudge the numbers.

It will be good to provide an option for you to have a look at their shopping cart or their accounting system. And if you find a variation there might even be a penalty for, you know, just like in tax, if you under report your tax and they find out they probably want to find you and charge you a fee.

So, you might want to build in an audit function there. Again, it all comes down to making sure you get good partners.

The business clones itself. This is an unlikely but potential risk is where you coach business A and then they go and start business B that's very similar and they're not giving you a cut of that. So, you want to probably protect yourself from them doing that in the agreement. Just let them know that they shouldn't be operating a similar nature business. If they did then it would form part of this agreement.

The business doesn't grow. I mean, this is a problem if you're on revenue share. So, one revenue share deal that I was very keen to do and sort of worked on twice didn't go ahead in the end because the business owner said that he's really happy with where it's at.

I mean, he's making a million bucks a year. He's very happy with that. And it doesn't see himself growing that much in the future, life is fantastic, more than he could ever dreamed of. And when we started working together, he was making four times less profit, he was earning a lot less so I've sort of got in too late basically, is my lesson and that's OK. But if the business doesn't grow, it's not a good candidate for this type of plan.

It's all good though. I mean, we're still friends and everything's cool. But these are just the filters that will help you figure it out.

The business has bad press. You know, I wouldn't go into business with the Fyre app, for example, you know, if something gets bad PR, I'll drop it like a rock. So, you need to create a parachute for yourself.

If the plane loses the engines, you want to get out. You don't want to be associated with it. It's another blessing for not being a business partner or a director. If someone drives their business off a cliff, you don't want to be involved. So, I'll talk to you about what's in the agreement in a sec. You want to go into the market yourself.

So, this is an interesting one. It's already happened for one of my students is they went into a market where they originally had a rev share deal, but the original partner cancelled the deal because there was a little bit of a - I guess it was a rookie error, but hard to see it at the time where there was a review period.

I'd strongly suggest you do not have a review period. It's not something you trial because if you get in there, you know, guns blazing, you make a big change, and they get really excited about that. And then they pull the parachute and they're out. They say, "See yah!" But in this case, we're able to capitalize by going into that market in a reverse rev share deal capacity. So, this is something that you just want to be mindful of.

You might not want to be tied to the business forever. So again, it's a good reason to have an exit possibility. I generally choose partners for businesses that are never going to be in because I never even get the hint of competition. But I'm not going to be in some of the markets that I've got revenue share deals with.

I wouldn't be talented enough or I'd have no interest in it. But I am in the market with my partner and if the partner didn't work out or whatever, then I might be tempted to go into that market with someone else but not myself. Right. But again, I'm more attracted to the right type of person behind the business in some cases than the business itself when I find those winners.

They want to exit. Sometimes they want to exit for whatever reason. And so, you should provide them away that they can do a buyout and it might be very similar to a sale event. Maybe they die, this is a possibility. Maybe you die.

So, you should provide for that in your agreement, who survives the agreement if it survives, what would happen if this happens because it's super unfortunate and tragic but I was just reading this morning about a cryptocurrency fund and I think they've lost like 100 and something million dollars because it's in cold storage because the owner was in India on a charity tour and unfortunately, unexpectedly passed away and the wife can't find the password.

So, you know, you should cover yourself for these sort of situations. And you want to exit. OK, you might want to get out. So, look, this is probably one of the most important bits of advice, set very clear expectations. And that's why you should put it on an agreement.

You should have a contract because this is where you'll remove most of the assumptions. If they didn't know fully what they're getting into, when they start reading through the agreement with their lawyer or if they are a lawyer, then they're going to now get a clear picture of what the agreement is intending to happen.

And my main finding here is, if you can get through the phase of making the agreement and everyone's happy and they sign, you'll probably never look at the agreement again. You put it away in the top drawer and forget about it because you found someone who gets it. And there're no assumptions now.

Everyone understands what's happening. And now it's just, get down to the job of creating wealth for each other. And I like that phase the most. So, it is a little bit hard. It's kind of like doing boot camp in the army before you go off to the next mission. It's tough crawling under the barbed wire and running through those tires in the mud and, you know, having cold showers and living in the bush with a little piece of plastic as your shelter and eating out of a tin can.

But if you can get through boot camp and get to the other side of the contract, you've got a great partner who you're ready to go into battle with. So, I can't emphasize this enough. Please, no handshake deals or well-intentioned gentleman's agreements because there's a very, very good chance that they don't know exactly what is happening and it will bite you on the backside.

Most terms are flexible. Keep this in mind, like the percentage, the payout amount, the entities you join it in, the product that you're working on. They're all quite flexible. So, this is where some creativity can be useful. This is where I'm imagining that I could help you in our private discussion. If you happen to try and land a rev share deal, then tell me all about it. And I'll tell you what I think of the terms and what you might be able to ask for.

You will involve a lawyer, I just want to tell you now, don't try and do this without a lawyer. You could probably get a cut and paste template, you could probably even use the template I have, but I still get my lawyer to check the terms if I change anything on it.

And I almost always do change something on it because there'll always be a sentence or a word or whatever. If you change any part of it, it might change the whole enforceability or the essence of the agreement. So, be very careful about DIY here. Agreement terms. You're going to have to set up the agreement terms like what is this all about. So, some of the things to look for.

Who's the client? Is it a person? Is it a company? Get the exact name and address and stuff. What is the project? So, for some rev share deals, I'm taking a percentage of their entire business. For other ones, it's just a portion of their business. So, like let's say if I were to do a rev share deal with Ezra, we might call the project SmartMarketer but I wouldn't have anything to do with Boom by Cindy Joseph.

Does that make sense? So, we're partitioning which area of his business we're tracking and where I'm putting my effort and where I'll get rewarded. What is promised for you to deliver? This is the question we had before like, what are you providing? A couple of choices here - the logical ones. Maybe it's services, maybe it's license IP, that's my favorite.

Maybe it's distribution. You might promise marketing distribution or traffic, or maybe it's networks. Look, maybe you're a skilled service provider in some area, maybe you're just updating their website or building them an app, it could be anything.

Just make sure whatever you provide that you can sustain because if you stop providing it, they might want to stop the agreement. So, I like to be less specific here if possible, if given the choice because I can offer value to a business in many different ways.

I don't want to limit myself by just - I'll tell you what I don't want, I don't want to provide one hour of my time per month or something ridiculous like that because that would be job-like. And, you know, if I missed one hour for one month, they might, on a technicality, strike down the deal and I think that would be a shame.

So again, this sort of thing we might end up talking about privately. What is the current revenue? You need to know you're starting if you're going to go with the one that I do and that's getting paid on the amount over and above where they're at now, you need to have a baseline of where they're at now.

And you might want to take an average of the last three or six months and see if they've been spiky or pretty consistent and pick a number. You might not always get it perfect. I've actually had someone renegotiate the number down because they overestimated it. And that was very fair and appreciated because it was just looking like there might have been a mistake.

What is the agreed royalty percentage rate? So, you just got to work out your rate. Everyone has to be happy with that rate. My goal with this is I want to get paid less than they do. So, if I were to take 10 percent, I'd want to make sure they're making at least 30 percent profit because I don't want to be more than a third of their profit, I want to be half their profit or a quarter, or half would be the absolute most that ends up like a 50/50 deal.

But ideally, it's less than half. I'd rather be on a third or a quarter and depending on what I bring to the table, of course. If they really need me, and if I'm like, I make that much of a difference, then I'm OK taking half. So, if they made a 50 percent profit, and I can take 20 percent, I wouldn't feel that that's too much. But if they only make a 20 percent profit, you know, 10 percent would be the absolute limit.

And I'd probably look at seven percent because I'd really want them to get more. Every month that comes around, I want them to think, well, I'm sending out this but I made this and I'm happy. When is it payable? So, when are you due your royalties? Is it monthly, is it annual? What's the start date? When does this agreement start?

What's the sales tracking method? Is it access to a cart? Is it access to a spreadsheet? Is it to log into Xero? I would put a disclaimer of some kind to make sure that you're not going to be on the hook for liability. Usually I'd request confidentiality. You don't want them sharing too much about the deal to others because it's OK if it's reasonably private, unless you have permission to talk about it.

Competition restraints. It will be good to not let them compete with their own business would be the main one. Now, sometimes they want to put a competition straight on you. And that might be a fair request but it might also be difficult. If you're licensing your IP, but other people have access to it, like in my case, I've got a coaching community.

I'm going to teach the same things but I could block a competitor from joining the coaching community. That might be a competition restraint that I put in place, which is actually automatic in SilverCircle anyway. Costs. Like you might have VAT or GST to consider. So, there might be some taxation concerns to speak with your accountant about.

Which governing law? In my case, it's the local law for me. And that works well. And can you audit? And would there be a late payment fee if you audit and find a variation. I mean this is just to keep someone honest, hopefully you never need to do that. It would be only if you suspect that they're doing better than what they say, or they're funneling it off to a different country.

And I'm sure some people get creative, but they do risk losing you and not getting the support. So, make sure you're always valuable. What would happen if they sell the business? How much would you get paid? And what if they want to get out? What if they just want to pay you a lump sum and say, "Thank you so much. I want to buy out this deal." And, again, this, should be similar to a sale event.

So, if you're getting paid out, then you won't continue to take monthly fees but you'll get a one-time payout. Why would someone do that? Maybe if they got on Oprah and they're about to just explode like 100X, they might think, well, that's not anything to do with you. Although even the things you did might have actually helped them get the thing to be on Oprah. So, I'd argue that some of it probably was, but that might be a reason they buy it out.

Other termination events. If they've sully themselves in the media or whatever, someone passes away, you know, these things can happen. And the thing you've got to ask yourself, is it fair for everyone? Because a deal that is out of proportion won't survive the test of time. It will be contested. They will get resentment. They'll stop paying.

And that is our rundown on revenue share deals. I really hope you liked that. This is potentially a multi-million-dollar training. If you apply this over the next few years, you could end up having a fantastic business model. For me, I'm sure that it will definitely reach seven figures without too much effort.

So I wanted to just give more depth and I wanted to break it down into 15 steps so that these two trainings together should give you a good comprehensive overview on how you can go about doing what's become a really fantastic business model.

So here we go!

I got asked recently by an industry icon to come and share what's working for me on his particular format, and when I think about all the things I've been doing - and that's not too many things because I'm pretty simple business operator - the revenue share deals have been working for me, like really working.

And that's the thing I think we don't hear much about. There are not that many people talking about it, certainly not many teaching it. And the way I do it, I think, is a little bit different than most others. So I'm seeing some great successes.

One of the questions I get is how long it takes to implement revenue share deals. And one of the things I like about them is, typically a few weeks. It's not a today thing, because there is some complexity involved in terms of the legals, but it's certainly a few-weeks thing. It's not a next-year thing. It's not a later-in-the-year thing. So it's not a slow burn like a publishing business model.

It's definitely not as difficult as some of the other service business. In fact, I'll go through a few things, a few problems that it solves and a few reasons why I like them.

One thing is, they do provide you specifically measurable results. Like, they're really good in terms of being able to know exactly how much you're earning from a revenue share deal. Revenue share deals for me, the income has now matched my top-level coaching income. So what does it actually mean for me since I've been doing revenue share deals?

This year, in particular in the last few months, I have dramatically stopped the intake on SilverCircle. And I've replaced that income with revenue share deals. So it means that I have freed up hours of my week, and my income is still climbing. So it is really like just amazing leverage. They're more enjoyable, and they're giving me a lot more freedom back into my life. So I like that.

That's just from 11 deals. So you don't need a massive portfolio to have a great income, to have a really substantial income. You just need the right deals. So I'm going to talk more about that in this training.

Importantly, many students have been succeeding with revenue share deals, and that's always the measure. I'm not one to just follow a theory. I go out and do it. I talked in the previous training about how I went and researched the market. I found all the people who were doing revenue share deals that I knew. I asked them for their paperwork. I asked them to tell me what they like, what they didn't like.

I went through all of Jay Abraham's materials. I found out what he got stuck with. I fixed that as well. So I did my research, and I found a way forward for me. And then I've been practitioning, and with the deals that I've done and with the deals my students have done, I've learnt quite a lot about it, the ups and downs of it. And it's wonderful when I'm seeing students succeed. I'll give you something really tangible.

Molly Pittman, you probably know her name. "James helped me negotiate a deal for percentage of top line revenue for a client. That's essentially what a revenue share deal is. It was my most profitable and enjoyable client experience I've ever had. Thank you Schramko for opening my eyes. I'm so glad I didn't settle for just a retainer on this one."

Okay, so this is really important, because if you're in a service type capacity, you're probably very used to doing retainer business. Now, I know a few people who have come up with better ways. One, for me, I think a revenue share can be an advantage over retainer if you know how to get results. Another way is getting paid per leads.

Now, one of my clients from SilverCircle, Dan Wardrope, sells leads. He's tipped the whole retainer industry on its head with leads, but he's a smart cookie, and guess what? He's been doing revenue share deals too.

"In the last three months, I've negotiated two rev share deals. Both were carefully planned and discussed with James. I expect combined these JVs will in the next two years make my holdings business $500K per year in recurring revenue. Mostly passive income."

Okay. Dan's smart. He's doing rev shares as well. It's perfect if you work with people who are switched on, and you can help them out in some way and be a stakeholder in their success on a performance basis. That'll be the summary.

So what problems do rev shares solve?

Well, it's legally risky entering a business with someone else, right? If you go and sign up for a partnership or a business and things go sour, or things go spectacularly well, and there's a battle over ownership, like we saw with Zuckerberg in that movie Social Places. And you know, it can be all sorts of complications, but with rev shares, they're way less legally risky. Okay, we'll get to that.

It can be complex creating international businesses. What if you're dealing with someone in a different country? How do you become a shareholder or owner in there? Maybe you got to set up an entity over there, you've got to set up a bank account. You certainly can't travel to do that if you had to do that as well. It can be difficult.

The motivation level of partners is usually different. This is true in marriages, but it's also true in business, even friendships. Maybe your partner is a little more fired up than you, or maybe they're lazy. That's a problem. So a lot of 50:50 partnerships often become sinking ships. This is something my mentor taught me.

I talked about this in my previous training, that some of my early deals didn't work out, because I did 50:50 partnerships, but the 50:50 partners weren't 50:50. There was some lopsidedness that caused them to be out of control.

And profit shares get really blurry on cost allocations. What if you want to go to a conference and you want to stay an extra night, you want to take your partner out to dinner, you expense it all to the business. Is your partner going to be happy sharing the profit after all of those things? What if you want to buy a course for $5,000? What if you buy a new car and depreciate it through the business?

Fact is, one of the greatest advantages of having a business is you can access some tax deductibility from expenses. And then if you are on some kind of profit share deal, you've got to be pretty clear about, you know, what's a legitimate business expense, or what's a gray business expense, or what's not even close to business expense?

But almost every business owner, unless they've got a good protocol set up like I do, is sticking their hand into the pocket of the business to fund their lifestyle. It's very common.

Single focus businesses can be easily wiped out. Like, if you only have one business, you get wiped out pretty easy. What if you're in the airline business? What if you're in the travel business? What if you are in the cruise line of business?Business doesn't look so good right now. So you've got to watch out.

I think this is a major problem of traditional businesses. It also takes cash to scale. You've got to spend money to scale, you've got to buy ads, get design, buy stock, get more courses; all these sort of things.

It can cost money to outlay to buy into a business. Sometimes you've got to pay money to buy a business. Now, there are certainly creative ways to buy a business without cash. But revenue share deals allow you to access the upside of a great business without putting any money into it.

And service contracts can be limited to time and a maximum effective hourly rate. So if you're just a retainer-based professional, you get paid your retainer, and that's the limit, right? It'd be bad if you're selling by the hour as well. Like you know, five hours for X dollars.

But the other problem with contracts is they're often very short term and low leverage. So you might be contracted and then the contract stops. You know, this is also true of high-level coaching. Coaching student might be there, and then one minute they stop. That's it. And that's the end of the day.

So let's talk about the benefits of revenue shares. And again, just to be clear, revenue share is you're basically taking a percentage of the revenue of a business. It might be the whole business, it might be a division of the business, it might be from a starting point from when you get to do the agreement.

These are all covered in the previous training, so go back to that core training. This is just additional detail. They're very low risk. I haven't really seen any major risk in a rev share deal. The main risk is that you do work and effort and don't get reward. That's the main risk, either because you can't help them or they have some other external circumstance.

And that has definitely happened to one of my rev share deals, where they got wiped out, essentially, by an external situation well beyond my control. It was just bad luck for everyone. And then the other potential risk is that you don't get paid. You know, if you're supposed to get paid, but you didn't get paid. That is a potential dilemma. But it can be resolved to some extent, by protecting yourself.

They're pretty simple to set up. They can be done on a handshake, but they shouldn't, you should definitely have a contract. But the contract is only a couple of pages, and it's pretty straightforward. They're very easy to understand, which is why they're easy to set up.And they're simple to get paid.

It's simply a case of invoicing and then the money gets into your account, on a monthly basis usually, and I cover that in one of the steps. And it motivates the business owner tremendously. Why? Because it's their business. They own the business. They're in charge of the business. They're the big shot. They're the majority stakeholder.

It's theirs. That's why, you know, when you're more of an affiliate relationship, in a way, you're always getting the smallest stake. You have the lowest risk. They feel pretty motivated about their business. So you're the beneficiary of their motivation.

And it protects against single point of failure. Think about, I've got this portfolio of 11 rev shares, which means I have effectively, I mean, 11 different businesses, but I can manage it easily on the side of SuperFastBusiness, on the side of SuperFastResults, on the side of SilverCircle. I've got this little investment portfolio of revenue share deals, which is growing splendidly.

So it gives me protection. I'm in the software business. I'm in the agency business. I'm in the information product
marketing business. And I'm in the recruitment business. I'm in different countries. I'm in Spain, I'm in Europe, I'm in the USA, I'm in Asia, I'm in Australia, I'm in New Zealand. I get to be able to spread my risk by moving in multiple industry categories and different currencies.

And I will never ever put myself in a position, knowingly, into a single point sensitive position. So this is wonderful.

Scale without costs. That's the beauty of this. If I can help a business grow, and it's their business, they're spending the money on their business. I'm just guiding that, steering it, helping it. I don't have to put a cent in, never put a cent into any of my rev shares.

You can invest without cash.

Sure, I might loan my team to activities or whatever. But I'm not putting cash in directly. I'm not investing as a shareholder. I'm not putting in a parcel of equity.

You can leverage your intellectual property. That's what IP is. And relationships. You don't have to commit time. You don't say, "Look, I'll do X number of hours."

You can say, "I'll lend you my ideas, my knowledge, my relationships, my database, my catchment, my knowledge. It's all there available for you."

You don't have to put in the cash. You don't have to put in the time, in the same way that a direct coaching student is going to probably want to be measuring time. That's one of the first questions coaching students ask, "How much time do I get with you?"

And they're long lasting; they don't just come and go. All of my rev shares have been long lasting, some of them clocked over years now. And they're very stable and they get better with age. They mature like fine wine, like really good, quality relationships.

You need to decide where you want to operate in the marketplace. For me, when I'm positioning where I want to be, I know that I work best with agencies and info marketers. And turns out I'm pretty good with software relating to websites. So those things I'm very comfortable with. That's the position I want to be in the marketplace.

I want to find the best agencies, the best info marketers, the best software, and I want to be in that position. So it's like mapping the coordinates on the board. Where do you want to be? Where do you want to occupy? What's your turf? Okay?

Step two is you need to have authority, right?

So that is, build your reputation. So for those people who you've decided where you want to position, you need to be recognized as a person that they would go to, to get help; a person who's knowledgeable, or authoritative on the thing that you're going to be helping them with. They should seek you out.

Step three is: you should systemize your intellectual property.

In my case, I use a LifeSheet or something similar to collate intellectual property. That's a spreadsheet where I put tabs and an index, and I put my knowledge into that, which I then turn into frameworks, recipes, structures, systems, trainings, books, courses.

If a client of mine or a rev share deal partner says, "Hey, have you got a framework for getting testimonials?" I just go straight right to my LifeSheet, copy and paste the tab or go through it with them. So if you've got expertise or knowledge, get it into a structured format of any kind.

It could be index cards. It doesn't matter. I've even got a product on LifeSheet. It's inside SuperFastBusiness membership or it's available as a standalone at SuperFastResults.

Step Four: You build relationships.

Okay, this is about building out connections. For me, I've got a fantastic network of connections because I travelled overseas a lot. Basically, every year for the last decade, I've been to many, many countries, gone to lots of conferences. I have gone to training courses, spoken at plenty of events, met my customers in multiple places.

You build up the connections you need to build that neural pathway of connectivity. You want a good strong rolodex. In the old school, it was a thing you put on your desk with all your contacts. You need to be able to refer someone or get to the source very quickly. People definitely come to me to find out who should they get for this or that.

And I'll usually know the person, whether it's setting up a Kickstarter through to who can design a website, I've got a contact.

Step five: distribution.

You need to build your database and social footprint. You see me publish short social media videos. I've got a training on that. I also podcast. I've got an audience. I have an attractive database or audience for a person who's got the right product for my audience. I'm getting over 1000 people every day listen to my podcasts, sometimes 2,000.

I've got hundreds of people watching the videos. I've got thousands of people on my email database, so I can email out an offer, which can get a good response for the right product or service. So it's a really good fit for me. If I'd build a big database and have enough of a social footprint, then I can be attractive for my partner, and it's a really fruitful relationship.

So that's my main job now, is to keep a strong database as I move more towards revenue share deals. I'm not so much needing to pipe those leads into my own products and services. I'm looking for the leverage and scale of growing my partner's portfolio. That's the biggest change.

From the outside, you still see my business, but what's really happening, the part under the water of the iceberg, is my partner businesses are all snowballing and that's creating more revenue for them, more reward for me.

And I don't have to add any more team members. I don't have to add any more stock. I don't have to have that capital expense other than just make sure that I've got a great database.

You need to tune your filters. You know, one of the craziest things you could do with rev shares is go and sign up everyone you find that's got a pulse, because a lot of them will be the wrong people. And I talked about that in the previous training. You want to go through and check your filters to make sure.

So the key here is you want to exclude bad deals before you ever start them. That's what you're trying to do. The downside is you've got this time and energy invested in a fruitless expedition. You will not get a great result for the amount of energy you put into it if you choose the wrong partner.

I gave you one big tip in the previous training, that is, the wrong partner will be too easy and too eager. You don't want those people because they'll expect you to do everything. You want someone that's a little more your speed, you know, a good partner. It's kind of like a marriage pairing. You don't want someone who would agree to marry you without even meeting you.

You want something that's a little bit more your level, that's a little bit of a challenge but would be fantastic when it's landed. Okay? So in business relationships, you've got to find your like-minded, kindred spirits, and get into a business partnership that's sustainable. Don't think about it for this week or this month or this year.

You want to think, can I be in a business partnership with this person for the next decade? And I do things in decades. I've had a podcast for decades, a membership for a decade. I've run live events for a decade. I've been coaching for a decade. I've been in forums for a decade. Commit to the long term, and you will win the game of online business.

Step seven: deal flow.

You need to get people to a call to action page eventually. For me, revenue share deals often come via the SilverCircle page, where it's one of the two options, people can either get coached or they can become a partner. It of course helps you if you let people know that this is the kind of deal you want.

And I could take it one step further, and I probably will this year, where I convert SilverCircle into only being rev share. It's very close to the point where I don't do straight coaching anymore, and I just do rev share. It's technically in that position. It's just not advertised as clearly. I will take a coaching student if they're a perfect fit, but they have to be perfect.

For now, it's mostly rev shares, and I'm not looking to add a lot of rev shares either. I could actually do really well with 11 rev shares. Maybe I'll get to a dozen, maybe a few more. But that's basically a really good number for me. And the rest of my business can come through leveraging books and information products.

Step eight: applications.

This is where people will come to you and they'll say, "Yes, I'm interested. Tell me about it. How does it work?" And you have to do the dance. You've got to find out about what their business is, they're going to ask you some questions.

I really want to emphasize this, you must screen carefully.
Do your research, check online reputation, go through their books, do some kind of diagnostic. You've got to know this person well. This is not a whirlwind romance. This is a long-term relationship, and you should screen carefully. Because you're going to spend money on legals, which is coming up.

Step nine, contract.

MUST. Must be a written agreement. Not a handshake. Must be a written agreement. Use a lawyer. Once you've done your first one, you will have a template to be able to work off the next one and the next one. Over time, I've refined my agreement to get to the point where we can get to the point fairly quickly without too much of a fuss.

Most people will look at it and most people will have questions. Most people will have a lawyer they're going to check it with. This part is where you'll lose a deal here or there, if you're too greedy, or your contract's too uncompromising, but you also might lose a deal where the other party is being unreasonable and won't accept your terms or close to it.

So then it's a good filter for saying, "This isn't meant to be for us." And I've seen a couple of students get to this point where the contract can't be agreed on. And that's okay. I've saved them a massive pain in the butt down the track. And usually it was because there was a slight misunderstanding or a different opinion about the potential performance, or what sort of reward was going to be acceptable for it.

Those are often the dancing points. And once you can clarify that, you're good. And if you can get through this phase, your partnership is probably going to be brilliant, because this was the hardest part. By far the hardest part is the contract phase.

Step ten is to communicate.

Alright? This is where you set up a schedule and or platform for regular communication. Now, it's easy for me. I put them into SilverCircle and in some cases Slack. But I message my partners wherever. I message them on Facebook or send an email. Depending where they are and what format they like, I'll message them. But it's important to have a regular schedule of communication.

How do you do that?

I suggest you have a diagnostic to identify opportunities and get the thing going quickly and build confidence. There's actually no business I can't find a quick win for with my diagnostic. It doesn't happen. There'll be something, either sending an email to past customers, or getting a better rate from a merchant, or changing a supplier, or fixing up a staff challenge; there'll always be something we can find and tune to make it better.

Step 12 is action, right?

You've got to do some stuff to keep this thing going well. And I suggest ongoing implementation. For me, I have regular check-ins with my partners, just like coaching calls. They do come to group calls. We do podcasts together. So we've got ongoing stuff happening.

Step 13 is compound results.

So once you've been getting results, compound them. How? Look for the 80:20 ongoing. Where are the leverage points? Do podcasts send them more traffic? Do certain introductions get them more customers? Does building their team from the inside out help them grow and scale faster?

Or is it just mindset chats occasionally that they need to just decompress? Or is it sending them straight-up referrals? Whatever it is, just keep that core thing going and get the results firing. Cross-pollinate them with each other.

Step 14 is reporting.

They need to report to you monthly what the revenue was. The revenue for simple calculation will be how much money the company sold in sales for that month, less any refunds, and in some cases, tax, depending on which country someone's in.

That's basically revenue net of refunds. That's it. Because that's the real revenue of the business. Refund is really reverse revenue, like the money came in, the money went out, it's not fair to be paid on that. So revenue net of refunds is a good number.

If you find a business that is heavily trial-focused and they have a lot of refunds, you might want to stick an extra month in there as a spacer. So you might want to get the number from the month prior to the month, if that makes sense. So if we were in October, we might look at the numbers from September for regular business. What did you do in September? And we pay that out in October.

If we have a high trial basis or refund model, then we might say, "Okay, it's October now. What did we do in August? Let's look at August's numbers because it would have all settled through September. And we got a good sort of feel for net out any refunds. But it's up to you and the revenue share partner to agree on this.

There are no black and white rules on this. Everything's negotiable or flexible.

Step 15 is get paid.

That's the fun part. In my team, we generate an invoice, and we get the money into our account. And I can say that I've been paid by every revenue share partner, so far, without any blips, not been an issue. This is the one thing most people are worried about.

I would suggest, if you're not getting paid, there are probably issues with the way you set it up. Maybe with the expectations, maybe with your filtering or partner selection. Maybe with your communication, maybe you just don't get good results. So these are all the things that I would be looking for adjusting if you didn't get paid.

But what I can say is revenue share deals have been good for me. I hope this sort of extra module enhances the first training we did on this. There are now 15 steps.

They're fleshed out in pretty good detail. Hopefully, you will be able to apply some of this in the course of your regular business and get your revenue share deals adding an income to whatever else you doing. But for me, it's been life changing, because it suits my business model. It suits me to be able to help other businesses.

It suits me to get paid on performance. It suits me to do less straight coaching calls now and to get my time back. If you are watching this from SuperFastResults, if you purchased it as a single product, you could get the SuperFastResults support access coaching for $10. That's a group coaching program where you can just ask whatever you want, but other people will see your questions and answers. So they're the ways you can get help.

Hopefully, I've inspired you to have a go at this model, because I think it's the thing I focus on. You know, the classic old question, you know, if you were to start again, tomorrow, what would you do? This - this is probably what I'd do. I'd just go and find businesses I can help, ask them for a small percentage of their revenue to help them, and get going on it. It's a good business model.

Now, obviously, I have an Australian business, and I'm dealing with clients who are sometimes in Australia, sometimes in other countries. That creates things like tax requirements.

For example, if I'm in Australia, and my client is then there's GST involved. If they're overseas, then there's not. Legal law's different in Australia versus the United States, for example. They might be similar in the UK to Australia.

But I don't give the template out as part of this training that you've been through, because I've literally spent $5,000. And it's very important that you get proper legal advice.

My first revenue share deal at time of recording this is five years old. I've made a lot of money in that five years. I'm glad I spent a few thousand dollars in the beginning, getting it right with a lawyer, because if someone wants to wiggle out of it, or not pay you, you will need your contract to be enforceable. And it needs to be valid.

So that's why I really recommend you speak to a lawyer. If you happen to be a member of SuperFastBusiness Intensive, then you can ask me for a copy of my contract. But I make no warranties as to how effective it could be. You still have to speak to your own lawyer.

But that being said, I want to go through some of the things that are involved in it because it might help you.

The main thing you want to sort of step out is who is the agreement between, because you basically want to make sure that you cover all the parties. The first part of the agreement is just defining it: I call mine a royalty agreement.

It's like a musician, I get a royalty. It specifies who the agreement is between: between my company and their company, you want to think about the entity. You put a date, of course.

You'll want to put all your official company numbers and addresses and contact details. My agreement goes into the background. And I say that my business is in the business of assisting other businesses grow, using ideas, knowledge, experience, networks, creativity and advice.

Now, whatever you provide might be different because maybe you're not a business coach as such, maybe you do something else. Maybe you provide ad services or design or something else that might go in there.

It talks about the fact that there's intellectual property involved and in terms of relationship that is not an employee-style relationship, etc. Then it goes into all the agreement definitions.

That's just legal stuff like the agreed rate, the business day, the business hours, the commencement date, the gross sales, the GST, the GST Act licensed materials, project royalty, to sell means services, termination amount.

Then you go through the interpretation. And this is straight out legal stuff: talks about currencies, reference to a person or an entity, then it goes into the terms. And my terms are that I'm granting a license in the favor of the client for the duration of the agreement.

And that it commences on the commencement date. We talk about payment, that in consideration of the payment of the royalty that I provide to services in relation to the project.

Then it talks about the payment terms like when it's due, the reporting terms, the calculation of the royalty, the audit of the royalty, the termination agreement, how it could end.

These are all flexible by the way, termination with cause, the termination amount, late payment and enforceable costs and any disclaimers.

Okay, then it goes into intellectual property rights. So I own the property, but I'm licensing it to the person using it while they're in part of this agreement. Restraints, so they're not allowed to basically pass on that information to someone else.

Released and indemnity. Of course, you want to protect yourself from any claims, etc. General terms: again, this is just legal stuff like blanks and errors, consents, costs, counterparts, further steps and notices, etc. Severability, waiver, warranty, survival and governing law.

And then the most important part: the schedule. And this is probably if you could only have one page, this would be it. It's: Who is the client? What is the project? What percentage is your royalty? How is it calculated?

Like, is it from scratch or is there a starting amount? The commencement date, the method of tracking, so it could be a shopping cart, or it could be just provided on a spreadsheet, the agreed penalty rate if there's a variance and then the termination amount.

So you may want to specify an amount that someone could pay if they want to buy out this license, which I've specified and then you sign it. That's it.

As I said, if you're a member of SuperFastBusiness Intensive, then you're welcome to this agreement. That will cost you somewhere around 799 or 999 to join that for one month. And it certainly would pay for itself just for this agreement alone because it's a fraction of what I've paid to get this agreement.

But you'll also get to come to weekly coaching calls and private coaching with me to be trying to put a deal together. You'll end up with the agreement and me for the first month at least, and you can decide if you want to stay on after that. And I'm sure we'll make a bit of a success out of this for you. Good luck.