What is the best revenue model in partnerships?

Discussion in 'Growing and Managing a Business' started by mikewelsh, Jun 15, 2011.

  1. mikewelsh

    mikewelsh
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    What's the best way to work on a technical+marketing partnership - one company does the development work, one does the selling of the solution.

    Is it better than tech company give a price to the marketing company and they mark up the price, or both agreed on the final price and marketing company gets a percentage?
     
  2. Fergal

    Fergal
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    Both methods are used successfully. Sometimes the marketing company will get a set percentage of the selling price and they can set the selling price, hence it is in their best interest to get the highest price possible.

    Are you asking about this mikewelsh, with any particular type of product or service in mind?
     
  3. Ava OuYang

    Ava OuYang
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    I think both agreed on the final price and marketing company gets a percentage is better. it is clear and easy to caculate.
     
  4. mikewelsh

    mikewelsh
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    Actually a partner wants to outsource all their software dev work to us, so what we do is that we quote the partner a price and they can mark-up as they want.
     
  5. Fergal

    Fergal
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    That sounds fair and workable mikewelsh. If you are providing a software development service to another company it is good that you are being paid for the work you actually do. If you were to be paid on a percentage commission you could find yourself in a situation where you are doing excellent work but receiving poor revenue because of someone else's failure to sell the product.
     

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