October 21, 2024 • 24 mins
In this bonus episode of 'Jereshia Said,' I’m pulling back the curtain on a major shift in my business model—revenue sharing. I share why I’m moving beyond traditional flat fees for one-on-one coaching and how this model aligns incentives for true growth. Tune in to discover how this dynamic structure benefits both client and coach, ensuring that success is a shared journey.
Why you should listen:
- How Revenue Sharing Works: Understand the mechanics of a revenue-sharing coaching model and why it aligns incentives for both parties.
- When to Consider Revenue Sharing: Learn whether this approach is a good fit for your business model based on your stage of growth and readiness.
- Navigating Risks and Rewards of Revenue Sharing: Get insights on balancing the potential trade-offs of revenue sharing and mitigating risks effectively.
If you’re curious about a more aligned, results-driven approach to business coaching, this episode is for you.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Hey.
(00:00):
Hey there.
Welcome back to the Theresa saidpodcast and I'm super.
We're excited about today'ssecond bonus episode, because
I'm going.
To let you in on a significantshift I've made in my business
this year.
One that's all about aligningour success and reducing.
Your risk.
Today, we're talking aboutrevenue sharing.
(00:20):
And why I'm moving away.
I shouldn't say moving away, butdoing some more experimentation
beyond just a traditional flatfee model for private one-on-one
advising and coaching.
I truly do believe.
Believe that private one-on-onecoaching is a really unique
dynamic with differentexpectations.
Compared to prerecorded coursesor group coaching.
Coaching programs that areprimarily based on a set
(00:43):
curriculum.
If you want more context onthis, I recommend checking out
the previous bonus episode Ipublished.
If your coach isn't helping yougrow by at least 10%, why are
you paying them?
Definitely go give that alisten.
If you haven't already.
But I know that anytime you're.
Making an investment in yourbusiness.
There's a lot to consider,especially.
When it comes to trustingsomeone to help guide your
(01:05):
growth.
I'm shifting to a revenuesharing model because I really
do believe that if I'm trulyhelping a client grow, I should
share in that growth.
And if your business isn't.
Growing by at least 10% duringthe time working together.
We know.
We probably need to reallyreevaluate the relationship and
have a conversation aboutwhether.
Whether or not working togetheris the best path forward based
(01:28):
on your season in business.
Based on the types of supportthat you need and based off of
the specific problem.
That you're looking to solve.
In this episode, our breakdown,exactly what revenue sharing
looks like, how it works.
In real-world coaching and whythis model helps both of us win.
If you've ever been curiousabout how this could work for
your business, or if you'rethinking about working with me,
this is the.
(01:52):
First, let's talk about why I'm.
I'm making this shift and whyI've been experimenting with
this in my own business model.
Coaching at its heart is about apartnership, a deeply aligned.
And partnership.
It's not just about me givingadvice and hoping.
Hoping you succeed, but I reallydo see a private one-on-one
relationship really.
Really being about us, walkingthe journey together and sharing
(02:13):
the responsibility for yourgrowth.
Growth.
This shift to a revenue sharingmodel came from my own
experience.
Worked with private one-on-onecoaches where I've invested
anywhere between 30 and ahundred thousand.
Dollars for a private one-on-onerelationship.
But it felt like such.
A one way dynamic.
And that left me hesitant tohire.
Hire private one-on-one coachesagain, because it lacked that.
(02:35):
Sense of partnership that I wasparticularly seeking at the
season stage of business.
That I was at.
I didn't want my clients to everfeel that way.
You know, I wanted a model.
Model where we're both equallyinvested where my success is
tied to.
Yours.
And that's why I'm aligning myearnings with your growth.
In doing a revenue share modelmade perfect sense for me.
(02:56):
Looking at my past clientresults, working with me
delivers.
I've helped multiple clients gofrom launching their very first
offer in the online.
Line space to building a multiseven figure business.
And just a matter of years, Andbecause I have a proven track
record because of my nuancedexperience.
And deep business acumen,private one-on-one coaching
becomes a.
A very much mutual investmentwhen I'm thinking about offering
(03:19):
it and doing it.
In a private one-on-onerelationship with another
client.
What I've noticed.
I noticed is that.
Also there really aren't thatmany multi seven.
Figure business owners offeringprivate one-on-one advising or
consulting.
Or, you know, coaching supportto be quite Frank, like for more
mature.
Business owners who need morethan just skillset development
(03:40):
who need more than just.
Just.
Typical training.
They need a real true partner.
In their growth.
There is a real gap in themarketplace and that's where I
saw an opportunity.
Opportunity to kind of step inand meet the need.
And also this type ofpartnership dynamic.
Dynamic really aligned with mycurrent season of business.
My current capacity.
Desires and kind of how I wantto show up and support clients.
(04:00):
Based off of where my.
Skillsets.
Really our best utilized in themarketplace.
You know, it's not.
Not just about the clientinvesting in me as a strategic
advisor and business coach, but.
It's also about me carefullyvetting and qualifying the
client.
To ensure they're right.
Right fit for that level ofrelationship and proximity.
In the past, the traditionalcoaching model relied heavily on
(04:21):
flat fees.
And I think that's pretty commonin our space.
You know, you pay a coach.
Whether or not your revenue grewmainly for their time, you know,
you're paying.
For the time spent working withthem and in today's market.
Consumers want more of a vestedinterest when they choose to
work with a private.
Private one-on-one businesscoach or a business consultant.
(04:41):
Not just paying for the.
Time spent, but seeing it as aninvestment in their business
longterm.
And.
Wanting to see measurableresults as an outcome of that
relationship.
And with revenue sharing, I'mreally aligning my incentives
with.
Yours.
I only make more when yourbusiness makes more, if.
If your business grows by 10,20, 30%, then yes, I'll share in
(05:02):
that.
That success, but if it doesn'tgrow, I don't either.
And it's as simple as that.
I kind of looked at revenuesharing similarly.
To if I were investing insomebody else's business, in the
sense of, you know, me.
Me becoming a partialshareholder or just doing a
traditional.
Like angel investment or thattype of investment in somebody
else's business.
Where you are.
Are also part of thatinvestment, potentially serving
(05:24):
as an advisor to help thatbusiness.
Grow, that's kind of how I'mseeing a private one-on-one
partnership and strategic.
Advisory and business coachingsupport.
When I am working with clientsthat have more comps.
Complex businesses.
They're more mature in theirbusinesses while, and they're
looking for more of that type ofreal.
So some might ask why I'mwilling to.
(05:45):
Take that risk and the truth islike, there's always a risk.
But.
It's really about evaluating thetrade offs.
I want a business.
Model that protects my capacityin this season of life while
also offering scalable.
Inability and with one-on-oneprivate advising and coaching,
there is.
Only so many hours in the day.
Like we both know that, buttying.
(06:06):
Tying my earnings to my clientsresults create a true win-win.
Dynamic.
It's a scalable model thataligns our interests and.
Benefits as both.
So this structure really ensuresthat I'm fully invested in.
Your success because your winsare also my wins.
And honestly, if I'm not helpingyou.
You grow by at least 10% a year.
There's probably no real reason.
(06:26):
Than to can keep workingtogether.
You know, like I think thatoftentimes.
When people are investing incoaches, private one-on-one
support.
Or even coaching programs orwhatever it might be.
And they're not seeing thatreturn over.
Over a realistic timeframe.
Typically it is because you.
Possibly hired the, maybe theright solution, but to solve the
(06:46):
wrong problem.
Or you're investing in a type ofsupport that isn't properly
aligned with what your capacity.
He is with what your owner'sintent is.
Or with what season of businessyou're in.
And to actually execute on whatit is that you're learning.
And part.
This dynamic, at least the waythat I'm looking at it is it
makes sure.
That we are both properlyevaluating the relationship.
(07:07):
We're properly calibrating ourexpectations.
And I think that when.
That is mutually in alignment.
The results of your able.
To achieve together are trulylike limitless.
And.
And I want to be held to thatstandard.
You know, I believe any coachworth you.
No, their assault and whatthey're doing should be able to
deliver measurable growth.
(07:28):
And again, I feel comfortabledoing this and betting on.
On myself in this type ofrelationship because of my
business acumen, I've built a$6million online coaching.
Coaching business myself.
I.
I incorporate was the headengineer before hundred million
dollar.
Pipeline project.
And that gave me a lot ofvisibility to upward management.
And understanding financials andoperations in a really nuanced
(07:51):
and contextual way.
Way and like all of my blend ofexperience of coaching hundreds.
And hundreds of clients over theyears, like I think doing
revenue share when you don't.
We don't have that experience iskind of a risk to take in your
business.
Because you don't.
Individually have that, thatbackground of results.
And background of experience topull on when you are working in
(08:11):
supporting another.
Business owner and helping themgrow.
So I do want to make sure that Icalibrate that like I.
I feel confident offering thisdynamic because one, when you've
worked with enough businesses inclose proximity, like you.
Your picker gets good over time.
I have a really good.
I for discernment to seepotential in the leader.
Of a business and also thepotential of the growth that
(08:33):
business can experience.
So I think that's a huge part ofthis dynamic here of like,
again, properly.
Qualifying a lead.
Um, but also trusting in myability to advise and my ability
to lean on my past experience.
And my ability to problem solvein somebody else's business.
And again, when I think thatthere is alignment in that it's
a really beautiful dynamic, but.
(08:55):
If you're earliest age in yourbusiness or don't have as much
business acumen or you feel.
You don't have that, that rangeof ability to be able to
understand.
Understand the dynamics eitheryou need to like really niche
down and specialize.
If you were to think.
About offering this in your ownbusiness to, uh, calibrate with.
You know, where, where you feelreally confident in serving
somebody being.
(09:15):
Really, really specific aboutthat or continuing with flat
fee.
until you get to a place inbusiness where you feel like.
You.
I have this level of acumen.
You have this level ofself-assurance and your ability
to one discern.
And who you decide to work with,but also be able to be of
support.
To.
That business owner at theparticular season of business
that they're in, where revenueshare.
(09:36):
Uh, his work.
So how.
How exactly does this modelwork?
Like let's get into the details.
First things first.
My partnership with clients isdesigned to support every aspect
of their business.
There are many times where wewill focus on a specific offer.
Offer or area, you know, Duringour coaching together, but the
relationship.
As a whole is designed to helpthem and their business in
(09:57):
totality from a holisticperspective.
Spective we'll likely touch onvarious elements, offerings,
messaging.
Positioning content marketingbusiness model structure.
The struts.
Strategic thought partnershipfor the business while holding
space for the soft skills.
Of being a CEO, you know,navigating people, pleasing with
clients.
Better.
Boundaries energy and capacitymanagement, like all the things.
(10:18):
But.
Everything we work on isinterconnected.
Even if we focus on one area at.
At a time.
My aim is to help them piecetogether, the entire puzzle and.
And I want them to see me as aresource for their entire
business, not just a small partof.
It.
So there's really three maincategories.
When I think about revenue.
Sharing one, there is a basefee.
And to start, there is a basefee that.
(10:39):
That covers my time, my team'stime and the essential resources
that go into.
To coaching.
This base rate is intentionallyset to make sure that all the
time.
Energy dedicated to your growthis accounted for, but it's just
a smart part of the.
Overall structure.
The second piece is a 10%revenue share.
So on top of the base fee.
There's a 10% revenue.
Cher.
(10:59):
This means that I get paid 10%of any new revenue.
That comes in through thebusiness.
That's cash collected on thatyour business.
Generates while we're workingtogether.
So what's important.
To note here is that I'm nottouching any of the money that
you had committed.
before we started workingtogether.
So we're only talking about thenew.
Revenue generated after ouragreement starts.
(11:20):
So for example, if you.
Had launched a coaching programor an offer, you know, six
months.
Before we started workingtogether and there was a 12
month payment plan associatedwith that.
And we start working togethersix months after that program
starts that.
That 10% revenue share is notaccounting for the payment plans
that you already had.
Previously committed that youhad sold people into before we
(11:41):
started working together.
I hope that makes sense.
I'm going to break this down alittle bit more, uh, later on in
the episode.
As well.
The third piece is that there'sno forever contracts.
One.
Important aspect of the revenuesharing model is that it doesn't
go on forever.
So.
As soon as we start workingtogether, the revenue share ends
and I'm not here to take.
Like a lifetime cut of yourbusiness.
Only the portion that's reflectsthe results.
(12:03):
That we've achieved during ourtime working together.
And at the end of.
A six month engagement.
For example, I invite clients torenew.
If.
It feels right for them.
And if it also feels right forme, like I want a business
built.
On happy money where clientsfeel good about choosing to
continue.
You to work together.
And many of my clients have beenwith me for four or five years.
(12:23):
Which I'm deeply, deeply blessedand grateful for.
And that's because they.
Genuinely see the value instaying not because they feel
stuck or.
Obligated.
Okay, let me share a real worldexample of how this works.
So.
So one of my long-term clientsstarted working with me when her
business was bringing.
Bringing in steady revenue, butshe was ready to scale and
together we mapped.
Mapped out her growth strategy.
(12:44):
And within a few months shestarted landing higher quality.
Quality and higher payingclients that new revenue is
where the 10% kicks.
Kicks in now, some of you mightbe wondering what happens if
your revenue dips or what.
What if you're not seeing growthright away.
That's okay.
Like growth.
Is not always linear.
It's very rare for it to belinear.
Like I.
I have seen a lot of people'sStripe accounts and it's never
(13:06):
just a straight line.
Line, there were always bemonths where things are
fluctuating, you know, thismodel.
Is to designed to adapt to that.
If you're having a slowerperiod, their percentage.
Adjusts accordingly.
And here's the kicker.
One of the biggest concerns Ihear.
From clients is duration.
Like what happens when I startmaking serious money?
Am I going to feel weird aboutpaying you 10% of those bigger
(13:27):
months.
And this is what I foundactually like clients get really
freaking excited.
About reaching those highernumbers.
Some even set personal goals topay.
Me a certain amount each month.
Not because they're focused onlike paying me.
But because it symbolizes theirown success.
And at the end of the day, therevenue.
Revenue share becomes a point ofpride because it shows just how
(13:48):
much they've grown.
And that's the energy I want tofoster in our work together.
One of the major reasons why Ichose this model is because.
It actually reduces risk foryou.
My client.
Instead of paying.
A absorbent Lee high flat feeeach month, regardless of
whether.
You're seeing growth.
The revenue sharing model meansyou're only paying.
When your business is generatingmore income.
(14:10):
And this helps ease the fear.
Of what if I don't see resultsbecause my pay is tied directly.
To your results.
If you don't grow, I don't get abigger check and.
And that's why it's so importantfor me to make sure you're a
great fit from the.
A start and that we are a greatfit from the start and why I
take on clients.
I believe are ready for thistype of partnership.
(14:31):
Like everybody ain't cut.
Cut out for this.
And you know, and every body isnot at a stage of business where
this type.
Of partnership even makes sense.
So if you're someone who's likeall in who's committed, To
growing and scaling sustainablyand ready to put in the work
like this model will.
I'll give you confidence.
You know, I'm willing to takethe risk because I believe in
what.
What we can achieve together.
But if you're not ready for thatlevel of commitment or.
(14:53):
You know, you're, aren'twilling, or maybe you're just
not ready to get into the nittygritty.
Gritty of scaling withsignificance.
This might not be the right timeto work with.
Me and that's totally okay.
So let's also touch on somethingimportant.
scalability.
A lot of clients ask me again.
Jay isn't this model limitingwhat happens if you want to
grow, you know, like.
(15:13):
They're thinking about it fromlike what's in it for me, you
know?
The truth is this model isincredibly scalable while it
might seem like.
It only works in one-on-onescenarios.
It can actually evolve as mybusiness grows.
So like because of thefoundation we build, I'm able to
take on the right.
Right.
Amount of clients over timeversus me overbooking myself or.
(15:36):
We're focusing a hundred percentof my efforts on, on marketing,
you know, trying to attracthundreds.
And thousands of clients.
If I were building a, anotherbusiness model without
sacrificing.
And quality or personalattention.
And since this model ties mycompensation.
Station to your success.
It scales naturally with myclient's growth.
So as your revenue increases, sodoes mine, it creates a
sustainable structure.
(15:56):
Structure that allows me tocontinue delivering high quality
support while.
Managing my time and energyefficiently.
And let's not forget.
It's a long.
Long term gain.
The more clients I work withunder this model, the.
More streamlined my systems andprocesses become, it's not just
scalable for my.
Business, but for yours too.
By aligning our incentives.
We're building a partnership.
(16:17):
That can grow as your businessevolves, whether you're going
from six figures to seven.
Or transitioning into new offersor new business models, like
we're able to grow together.
The other.
So now for those of you whomight be considering offering.
A revenue sharing model in yourown business.
Let's talk about the trade offsfor you.
The revenue sharing model has alot of benefits, but it also
comes with its own.
(16:37):
Unique.
Aspects of risk that we shouldpoint out.
Here are a few things to thinkabout.
If you're considering makingthis shift.
I really.
Really positive thing is that italigns incentives.
Your success is.
Tied to your client success.
And that creates a deeperpartnership when you're a.
Clients see that you're willingto share that risk with them.
It builds trust and it makesyour.
(16:57):
Sales process.
Easier in a lot of unique ways.
So if you've.
You've been somebody who, youknow, you've been offering done
for you services or you've beencoached.
Coaching or advising orwhatever.
And you're like, man, my clientsare getting.
Uh, incredible freaking resolvedbecause of the work that we're
doing together.
This might.
Might be something to considerin your offer suite.
Now a risk or a con.
(17:18):
No a possible trade off is thisof this is risk of non-payment.
If your client's businessdoesn't grow or experiences a
substan.
slow period.
You might earn less than youwould with a traditional.
Higher flat fee model.
So to mitigate this, you reallyneed to be confident.
Confident in your ability tohelp them grow thoroughly.
You know, making sure that youare thoroughly.
(17:39):
Qualifying leads up front toensure the partnership model is
a good fit.
And.
And confirm that your client isfully committed to actually
wanting to grow their business.
You know, don't get me wrongwith life happens and there will
always be factors.
Factors beyond your control.
Um, but you know, it's justimportant for you guys to.
Have those types ofconversations and for you to
feel confident in knowing thatlike growth.
(17:59):
Is something that this client ischoosing to prioritize when they
choose to hire you.
Now another really beautifulbenefit of this relationship and
revenue sharing.
Is long-term clientrelationships.
What I've noticed with revenue.
Sharing.
It really does encouragelong-term partnerships and
longterm client relations.
clients are more likely to stickwith you as they see consistent
(18:19):
growth.
Both which creates a reallystable and steady base of
recurring income.
For you over time.
Now another, you know, not sogreat.
Or another con that you mightwant to think of?
Another trade off is time tobuild results.
That's it can take time for therevenue sharing model to kick
in.
You know, if you're workingwith.
A client who's starting fromscratch, for example, or going
through a slow period forwhatever.
(18:40):
The reason it might be, you maynot see immediate financial
returns.
From that revenue sharing sideof things, you know, you have to
be patient and willing to play.
The long game as well.
So this process, do you know, inthis revenue sharing model?
I don't like requires a level oflike surrendering and letting go
of control.
Um, Um, which has its ownunique, you know, dynamics to
it.
But I want to make sure we atleast point that out.
(19:01):
Another really positive benefitof the revenue sharing model is
that it is.
Scalable, especially for thoseof you that really enjoy private
one-on-one.
One-on-one coaching and privateone-on-one relationships.
As I mentioned earlier.
Like this model does scale asyour clients grow your income
grows and it can.
Also evolve as your businessgrows to include group offers
masterminds or even.
Higher touch services you couldbe offering.
(19:24):
A revenue share as.
Uh, part of some of those other,um, traditional offer types,
depending.
On how you structure, access,proximity, and deliverables.
So.
You're thinking about tryingthis out, consider whether
you're in a position to manage.
The risks and whether thisaligns with your longterm
vision, for how.
You want your business to grow?
There is no right or wrongpricing model.
(19:45):
And I want to make sure that I'mvery clear on that.
Like I've found success doingmultiple, you.
Pricing variations.
And I've seen my clients do thesame, but there's no right or
wrong.
Wrong way to decide how you setup your pricing and your
business.
But.
I hope that by me introducingthis one, it gives you something
else to think.
About it offers someperspective.
It may be expands.
How you thought about it in.
(20:06):
Your own business and opens youup to explore new ways to create
scale, especially.
Especially in a one-on-onedynamic that traditionally came
with significant constraints.
So in closing, I really want tosay that this shift to revenue
sharing.
Has already transformed how Iapproach advising and coaching
clients.
And it's led to stronger, morealigned partnerships like.
(20:26):
I've really noticed when clientsare in this revenue sharing
dynamic.
They.
They show up differently, youknow, partly because it's like,
You know, they're paying me 10%of their revenue growth.
But also I really do.
Do believe in what clients haveshared with me is that they feel
like they're not doing thisalone.
Don't anymore, you know, for alot of us solo business owners,
maybe you have some teams.
(20:47):
Teams from contractors.
And what have you very rarely doyou have a leadership team?
Where you are sharing and jointresponsibility, sharing that
cognitive load.
Load sharing that heavierstrategics decision-making with
anybody else.
Like a lot of the time we'redoing that very much solo.
And being in a partnership.
Partnership model with, youknow, somebody in this type of
relationship with revenuesharing.
(21:07):
And a strategic advisor.
It actually releases some ofthat pressure because they know.
That risk is now jointly sharedwith somebody else in a really
unique way.
And I've noticed it reallyhelped reignite a light of
clients who have maybe kind.
Like lost some of their hope orwe're getting a little bit
discouraged and their journey.
Um, and.
And again, it just, it activatesa partnership in a really
beautiful dynamic from what I'venoticed.
(21:27):
Noticed.
So if you're thinking aboutinvesting in yourself or your
business in this modelresonates.
What's with you.
I'd love to explore it furtherand continue to chat.
So.
I'm going to make sure that Ileave a link in the show notes
for how you can get on myprivate one-on-one.
One-on-one waitlist at the timeof this recording, I'm currently
at capacity with clients.
But I'm going to be opening upapplications here soon to start
enrolling for 20.
(21:48):
25.
Um, so if you're interested inthis or want to learn more, I'm
going to leave.
The link again in the show notesfor you to join my waitlist.
Cause I notify my waitlistfirst.
As new coaching.
Uh, and advising spots becomeavailable.
So remember.
Remember, this is all aboutgrowth.
For the both of us.
And I truly believe that when wealign what we define as success
we can achieve.
Even greater results together.
(22:10):
Thank you so much for tuning in,and if you have.
Any questions or want to explorehow this could work for your
business?
Please do not hesitate.
Tate to reach out.
Like I mentioned before, I'llleave a link in the show notes.
Um, To join my privateone-on-one wait-list.
And as I have coaching spots,Open up.
I notify my waitlist first.
So I'm here to help you takethat next big step.
If this feels aligned and goodfor you.
(22:30):
Until next time.
Remember your business.
This should work for you, notthe other way around.
Keep thriving, keep growing andkeep creating a business in life
that truly.
Truly reflects who you are inwhat you want, build it your
way.
Way in most importantly, enjoythe process.
Thank you.
So.
So much for joining this bonusepisode and listening to the
(22:51):
drisha said podcasts.
It means so much to me that youchoose to spend your time.
You know, with me.
On this podcast, you know, ifyou're interested in learning
more about the revenue sharingmodel or how we can work
together.
Again, I invite you.
You to join my privateone-on-one waitlist or visit my
website.
Theresha hawk.com.
Just been recently refreshed.
I look forward to you checking.
Checking that out.
Hey.
(00:00):
Hey there.
Welcome back to the Theresa saidpodcast and I'm super.
We're excited about today'ssecond bonus episode, because
I'm going.
To let you in on a significantshift I've made in my business
this year.
One that's all about aligningour success and reducing.
Your risk.
Today, we're talking aboutrevenue sharing.
(00:20):
And why I'm moving away.
I shouldn't say moving away, butdoing some more experimentation
beyond just a traditional flatfee model for private one-on-one
advising and coaching.
I truly do believe.
Believe that private one-on-onecoaching is a really unique
dynamic with differentexpectations.
Compared to prerecorded coursesor group coaching.
Coaching programs that areprimarily based on a set
(00:43):
curriculum.
If you want more context onthis, I recommend checking out
the previous bonus episode Ipublished.
If your coach isn't helping yougrow by at least 10%, why are
you paying them?
Definitely go give that alisten.
If you haven't already.
But I know that anytime you're.
Making an investment in yourbusiness.
There's a lot to consider,especially.
When it comes to trustingsomeone to help guide your
(01:05):
growth.
I'm shifting to a revenuesharing model because I really
do believe that if I'm trulyhelping a client grow, I should
share in that growth.
And if your business isn't.
Growing by at least 10% duringthe time working together.
We know.
We probably need to reallyreevaluate the relationship and
have a conversation aboutwhether.
Whether or not working togetheris the best path forward based
(01:28):
on your season in business.
Based on the types of supportthat you need and based off of
the specific problem.
That you're looking to solve.
In this episode, our breakdown,exactly what revenue sharing
looks like, how it works.
In real-world coaching and whythis model helps both of us win.
If you've ever been curiousabout how this could work for
your business, or if you'rethinking about working with me,
this is the.
(01:52):
First, let's talk about why I'm.
I'm making this shift and whyI've been experimenting with
this in my own business model.
Coaching at its heart is about apartnership, a deeply aligned.
And partnership.
It's not just about me givingadvice and hoping.
Hoping you succeed, but I reallydo see a private one-on-one
relationship really.
Really being about us, walkingthe journey together and sharing
(02:13):
the responsibility for yourgrowth.
Growth.
This shift to a revenue sharingmodel came from my own
experience.
Worked with private one-on-onecoaches where I've invested
anywhere between 30 and ahundred thousand.
Dollars for a private one-on-onerelationship.
But it felt like such.
A one way dynamic.
And that left me hesitant tohire.
Hire private one-on-one coachesagain, because it lacked that.
(02:35):
Sense of partnership that I wasparticularly seeking at the
season stage of business.
That I was at.
I didn't want my clients to everfeel that way.
You know, I wanted a model.
Model where we're both equallyinvested where my success is
tied to.
Yours.
And that's why I'm aligning myearnings with your growth.
In doing a revenue share modelmade perfect sense for me.
(02:56):
Looking at my past clientresults, working with me
delivers.
I've helped multiple clients gofrom launching their very first
offer in the online.
Line space to building a multiseven figure business.
And just a matter of years, Andbecause I have a proven track
record because of my nuancedexperience.
And deep business acumen,private one-on-one coaching
becomes a.
A very much mutual investmentwhen I'm thinking about offering
(03:19):
it and doing it.
In a private one-on-onerelationship with another
client.
What I've noticed.
I noticed is that.
Also there really aren't thatmany multi seven.
Figure business owners offeringprivate one-on-one advising or
consulting.
Or, you know, coaching supportto be quite Frank, like for more
mature.
Business owners who need morethan just skillset development
(03:40):
who need more than just.
Just.
Typical training.
They need a real true partner.
In their growth.
There is a real gap in themarketplace and that's where I
saw an opportunity.
Opportunity to kind of step inand meet the need.
And also this type ofpartnership dynamic.
Dynamic really aligned with mycurrent season of business.
My current capacity.
Desires and kind of how I wantto show up and support clients.
(04:00):
Based off of where my.
Skillsets.
Really our best utilized in themarketplace.
You know, it's not.
Not just about the clientinvesting in me as a strategic
advisor and business coach, but.
It's also about me carefullyvetting and qualifying the
client.
To ensure they're right.
Right fit for that level ofrelationship and proximity.
In the past, the traditionalcoaching model relied heavily on
(04:21):
flat fees.
And I think that's pretty commonin our space.
You know, you pay a coach.
Whether or not your revenue grewmainly for their time, you know,
you're paying.
For the time spent working withthem and in today's market.
Consumers want more of a vestedinterest when they choose to
work with a private.
Private one-on-one businesscoach or a business consultant.
(04:41):
Not just paying for the.
Time spent, but seeing it as aninvestment in their business
longterm.
And.
Wanting to see measurableresults as an outcome of that
relationship.
And with revenue sharing, I'mreally aligning my incentives
with.
Yours.
I only make more when yourbusiness makes more, if.
If your business grows by 10,20, 30%, then yes, I'll share in
(05:02):
that.
That success, but if it doesn'tgrow, I don't either.
And it's as simple as that.
I kind of looked at revenuesharing similarly.
To if I were investing insomebody else's business, in the
sense of, you know, me.
Me becoming a partialshareholder or just doing a
traditional.
Like angel investment or thattype of investment in somebody
else's business.
Where you are.
Are also part of thatinvestment, potentially serving
(05:24):
as an advisor to help thatbusiness.
Grow, that's kind of how I'mseeing a private one-on-one
partnership and strategic.
Advisory and business coachingsupport.
When I am working with clientsthat have more comps.
Complex businesses.
They're more mature in theirbusinesses while, and they're
looking for more of that type ofreal.
So some might ask why I'mwilling to.
(05:45):
Take that risk and the truth islike, there's always a risk.
But.
It's really about evaluating thetrade offs.
I want a business.
Model that protects my capacityin this season of life while
also offering scalable.
Inability and with one-on-oneprivate advising and coaching,
there is.
Only so many hours in the day.
Like we both know that, buttying.
(06:06):
Tying my earnings to my clientsresults create a true win-win.
Dynamic.
It's a scalable model thataligns our interests and.
Benefits as both.
So this structure really ensuresthat I'm fully invested in.
Your success because your winsare also my wins.
And honestly, if I'm not helpingyou.
You grow by at least 10% a year.
There's probably no real reason.
(06:26):
Than to can keep workingtogether.
You know, like I think thatoftentimes.
When people are investing incoaches, private one-on-one
support.
Or even coaching programs orwhatever it might be.
And they're not seeing thatreturn over.
Over a realistic timeframe.
Typically it is because you.
Possibly hired the, maybe theright solution, but to solve the
(06:46):
wrong problem.
Or you're investing in a type ofsupport that isn't properly
aligned with what your capacity.
He is with what your owner'sintent is.
Or with what season of businessyou're in.
And to actually execute on whatit is that you're learning.
And part.
This dynamic, at least the waythat I'm looking at it is it
makes sure.
That we are both properlyevaluating the relationship.
(07:07):
We're properly calibrating ourexpectations.
And I think that when.
That is mutually in alignment.
The results of your able.
To achieve together are trulylike limitless.
And.
And I want to be held to thatstandard.
You know, I believe any coachworth you.
No, their assault and whatthey're doing should be able to
deliver measurable growth.
(07:28):
And again, I feel comfortabledoing this and betting on.
On myself in this type ofrelationship because of my
business acumen, I've built a$6million online coaching.
Coaching business myself.
I.
I incorporate was the headengineer before hundred million
dollar.
Pipeline project.
And that gave me a lot ofvisibility to upward management.
And understanding financials andoperations in a really nuanced
(07:51):
and contextual way.
Way and like all of my blend ofexperience of coaching hundreds.
And hundreds of clients over theyears, like I think doing
revenue share when you don't.
We don't have that experience iskind of a risk to take in your
business.
Because you don't.
Individually have that, thatbackground of results.
And background of experience topull on when you are working in
(08:11):
supporting another.
Business owner and helping themgrow.
So I do want to make sure that Icalibrate that like I.
I feel confident offering thisdynamic because one, when you've
worked with enough businesses inclose proximity, like you.
Your picker gets good over time.
I have a really good.
I for discernment to seepotential in the leader.
Of a business and also thepotential of the growth that
(08:33):
business can experience.
So I think that's a huge part ofthis dynamic here of like,
again, properly.
Qualifying a lead.
Um, but also trusting in myability to advise and my ability
to lean on my past experience.
And my ability to problem solvein somebody else's business.
And again, when I think thatthere is alignment in that it's
a really beautiful dynamic, but.
(08:55):
If you're earliest age in yourbusiness or don't have as much
business acumen or you feel.
You don't have that, that rangeof ability to be able to
understand.
Understand the dynamics eitheryou need to like really niche
down and specialize.
If you were to think.
About offering this in your ownbusiness to, uh, calibrate with.
You know, where, where you feelreally confident in serving
somebody being.
(09:15):
Really, really specific aboutthat or continuing with flat
fee.
until you get to a place inbusiness where you feel like.
You.
I have this level of acumen.
You have this level ofself-assurance and your ability
to one discern.
And who you decide to work with,but also be able to be of
support.
To.
That business owner at theparticular season of business
that they're in, where revenueshare.
(09:36):
Uh, his work.
So how.
How exactly does this modelwork?
Like let's get into the details.
First things first.
My partnership with clients isdesigned to support every aspect
of their business.
There are many times where wewill focus on a specific offer.
Offer or area, you know, Duringour coaching together, but the
relationship.
As a whole is designed to helpthem and their business in
(09:57):
totality from a holisticperspective.
Spective we'll likely touch onvarious elements, offerings,
messaging.
Positioning content marketingbusiness model structure.
The struts.
Strategic thought partnershipfor the business while holding
space for the soft skills.
Of being a CEO, you know,navigating people, pleasing with
clients.
Better.
Boundaries energy and capacitymanagement, like all the things.
(10:18):
But.
Everything we work on isinterconnected.
Even if we focus on one area at.
At a time.
My aim is to help them piecetogether, the entire puzzle and.
And I want them to see me as aresource for their entire
business, not just a small partof.
It.
So there's really three maincategories.
When I think about revenue.
Sharing one, there is a basefee.
And to start, there is a basefee that.
(10:39):
That covers my time, my team'stime and the essential resources
that go into.
To coaching.
This base rate is intentionallyset to make sure that all the
time.
Energy dedicated to your growthis accounted for, but it's just
a smart part of the.
Overall structure.
The second piece is a 10%revenue share.
So on top of the base fee.
There's a 10% revenue.
Cher.
(10:59):
This means that I get paid 10%of any new revenue.
That comes in through thebusiness.
That's cash collected on thatyour business.
Generates while we're workingtogether.
So what's important.
To note here is that I'm nottouching any of the money that
you had committed.
before we started workingtogether.
So we're only talking about thenew.
Revenue generated after ouragreement starts.
(11:20):
So for example, if you.
Had launched a coaching programor an offer, you know, six
months.
Before we started workingtogether and there was a 12
month payment plan associatedwith that.
And we start working togethersix months after that program
starts that.
That 10% revenue share is notaccounting for the payment plans
that you already had.
Previously committed that youhad sold people into before we
(11:41):
started working together.
I hope that makes sense.
I'm going to break this down alittle bit more, uh, later on in
the episode.
As well.
The third piece is that there'sno forever contracts.
One.
Important aspect of the revenuesharing model is that it doesn't
go on forever.
So.
As soon as we start workingtogether, the revenue share ends
and I'm not here to take.
Like a lifetime cut of yourbusiness.
Only the portion that's reflectsthe results.
(12:03):
That we've achieved during ourtime working together.
And at the end of.
A six month engagement.
For example, I invite clients torenew.
If.
It feels right for them.
And if it also feels right forme, like I want a business
built.
On happy money where clientsfeel good about choosing to
continue.
You to work together.
And many of my clients have beenwith me for four or five years.
(12:23):
Which I'm deeply, deeply blessedand grateful for.
And that's because they.
Genuinely see the value instaying not because they feel
stuck or.
Obligated.
Okay, let me share a real worldexample of how this works.
So.
So one of my long-term clientsstarted working with me when her
business was bringing.
Bringing in steady revenue, butshe was ready to scale and
together we mapped.
Mapped out her growth strategy.
(12:44):
And within a few months shestarted landing higher quality.
Quality and higher payingclients that new revenue is
where the 10% kicks.
Kicks in now, some of you mightbe wondering what happens if
your revenue dips or what.
What if you're not seeing growthright away.
That's okay.
Like growth.
Is not always linear.
It's very rare for it to belinear.
Like I.
I have seen a lot of people'sStripe accounts and it's never
(13:06):
just a straight line.
Line, there were always bemonths where things are
fluctuating, you know, thismodel.
Is to designed to adapt to that.
If you're having a slowerperiod, their percentage.
Adjusts accordingly.
And here's the kicker.
One of the biggest concerns Ihear.
From clients is duration.
Like what happens when I startmaking serious money?
Am I going to feel weird aboutpaying you 10% of those bigger
(13:27):
months.
And this is what I foundactually like clients get really
freaking excited.
About reaching those highernumbers.
Some even set personal goals topay.
Me a certain amount each month.
Not because they're focused onlike paying me.
But because it symbolizes theirown success.
And at the end of the day, therevenue.
Revenue share becomes a point ofpride because it shows just how
(13:48):
much they've grown.
And that's the energy I want tofoster in our work together.
One of the major reasons why Ichose this model is because.
It actually reduces risk foryou.
My client.
Instead of paying.
A absorbent Lee high flat feeeach month, regardless of
whether.
You're seeing growth.
The revenue sharing model meansyou're only paying.
When your business is generatingmore income.
(14:10):
And this helps ease the fear.
Of what if I don't see resultsbecause my pay is tied directly.
To your results.
If you don't grow, I don't get abigger check and.
And that's why it's so importantfor me to make sure you're a
great fit from the.
A start and that we are a greatfit from the start and why I
take on clients.
I believe are ready for thistype of partnership.
(14:31):
Like everybody ain't cut.
Cut out for this.
And you know, and every body isnot at a stage of business where
this type.
Of partnership even makes sense.
So if you're someone who's likeall in who's committed, To
growing and scaling sustainablyand ready to put in the work
like this model will.
I'll give you confidence.
You know, I'm willing to takethe risk because I believe in
what.
What we can achieve together.
But if you're not ready for thatlevel of commitment or.
(14:53):
You know, you're, aren'twilling, or maybe you're just
not ready to get into the nittygritty.
Gritty of scaling withsignificance.
This might not be the right timeto work with.
Me and that's totally okay.
So let's also touch on somethingimportant.
scalability.
A lot of clients ask me again.
Jay isn't this model limitingwhat happens if you want to
grow, you know, like.
(15:13):
They're thinking about it fromlike what's in it for me, you
know?
The truth is this model isincredibly scalable while it
might seem like.
It only works in one-on-onescenarios.
It can actually evolve as mybusiness grows.
So like because of thefoundation we build, I'm able to
take on the right.
Right.
Amount of clients over timeversus me overbooking myself or.
(15:36):
We're focusing a hundred percentof my efforts on, on marketing,
you know, trying to attracthundreds.
And thousands of clients.
If I were building a, anotherbusiness model without
sacrificing.
And quality or personalattention.
And since this model ties mycompensation.
Station to your success.
It scales naturally with myclient's growth.
So as your revenue increases, sodoes mine, it creates a
sustainable structure.
(15:56):
Structure that allows me tocontinue delivering high quality
support while.
Managing my time and energyefficiently.
And let's not forget.
It's a long.
Long term gain.
The more clients I work withunder this model, the.
More streamlined my systems andprocesses become, it's not just
scalable for my.
Business, but for yours too.
By aligning our incentives.
We're building a partnership.
(16:17):
That can grow as your businessevolves, whether you're going
from six figures to seven.
Or transitioning into new offersor new business models, like
we're able to grow together.
The other.
So now for those of you whomight be considering offering.
A revenue sharing model in yourown business.
Let's talk about the trade offsfor you.
The revenue sharing model has alot of benefits, but it also
comes with its own.
(16:37):
Unique.
Aspects of risk that we shouldpoint out.
Here are a few things to thinkabout.
If you're considering makingthis shift.
I really.
Really positive thing is that italigns incentives.
Your success is.
Tied to your client success.
And that creates a deeperpartnership when you're a.
Clients see that you're willingto share that risk with them.
It builds trust and it makesyour.
(16:57):
Sales process.
Easier in a lot of unique ways.
So if you've.
You've been somebody who, youknow, you've been offering done
for you services or you've beencoached.
Coaching or advising orwhatever.
And you're like, man, my clientsare getting.
Uh, incredible freaking resolvedbecause of the work that we're
doing together.
This might.
Might be something to considerin your offer suite.
Now a risk or a con.
(17:18):
No a possible trade off is thisof this is risk of non-payment.
If your client's businessdoesn't grow or experiences a
substan.
slow period.
You might earn less than youwould with a traditional.
Higher flat fee model.
So to mitigate this, you reallyneed to be confident.
Confident in your ability tohelp them grow thoroughly.
You know, making sure that youare thoroughly.
(17:39):
Qualifying leads up front toensure the partnership model is
a good fit.
And.
And confirm that your client isfully committed to actually
wanting to grow their business.
You know, don't get me wrongwith life happens and there will
always be factors.
Factors beyond your control.
Um, but you know, it's justimportant for you guys to.
Have those types ofconversations and for you to
feel confident in knowing thatlike growth.
(17:59):
Is something that this client ischoosing to prioritize when they
choose to hire you.
Now another really beautifulbenefit of this relationship and
revenue sharing.
Is long-term clientrelationships.
What I've noticed with revenue.
Sharing.
It really does encouragelong-term partnerships and
longterm client relations.
clients are more likely to stickwith you as they see consistent
(18:19):
growth.
Both which creates a reallystable and steady base of
recurring income.
For you over time.
Now another, you know, not sogreat.
Or another con that you mightwant to think of?
Another trade off is time tobuild results.
That's it can take time for therevenue sharing model to kick
in.
You know, if you're workingwith.
A client who's starting fromscratch, for example, or going
through a slow period forwhatever.
(18:40):
The reason it might be, you maynot see immediate financial
returns.
From that revenue sharing sideof things, you know, you have to
be patient and willing to play.
The long game as well.
So this process, do you know, inthis revenue sharing model?
I don't like requires a level oflike surrendering and letting go
of control.
Um, Um, which has its ownunique, you know, dynamics to
it.
But I want to make sure we atleast point that out.
(19:01):
Another really positive benefitof the revenue sharing model is
that it is.
Scalable, especially for thoseof you that really enjoy private
one-on-one.
One-on-one coaching and privateone-on-one relationships.
As I mentioned earlier.
Like this model does scale asyour clients grow your income
grows and it can.
Also evolve as your businessgrows to include group offers
masterminds or even.
Higher touch services you couldbe offering.
(19:24):
A revenue share as.
Uh, part of some of those other,um, traditional offer types,
depending.
On how you structure, access,proximity, and deliverables.
So.
You're thinking about tryingthis out, consider whether
you're in a position to manage.
The risks and whether thisaligns with your longterm
vision, for how.
You want your business to grow?
There is no right or wrongpricing model.
(19:45):
And I want to make sure that I'mvery clear on that.
Like I've found success doingmultiple, you.
Pricing variations.
And I've seen my clients do thesame, but there's no right or
wrong.
Wrong way to decide how you setup your pricing and your
business.
But.
I hope that by me introducingthis one, it gives you something
else to think.
About it offers someperspective.
It may be expands.
How you thought about it in.
(20:06):
Your own business and opens youup to explore new ways to create
scale, especially.
Especially in a one-on-onedynamic that traditionally came
with significant constraints.
So in closing, I really want tosay that this shift to revenue
sharing.
Has already transformed how Iapproach advising and coaching
clients.
And it's led to stronger, morealigned partnerships like.
(20:26):
I've really noticed when clientsare in this revenue sharing
dynamic.
They.
They show up differently, youknow, partly because it's like,
You know, they're paying me 10%of their revenue growth.
But also I really do.
Do believe in what clients haveshared with me is that they feel
like they're not doing thisalone.
Don't anymore, you know, for alot of us solo business owners,
maybe you have some teams.
(20:47):
Teams from contractors.
And what have you very rarely doyou have a leadership team?
Where you are sharing and jointresponsibility, sharing that
cognitive load.
Load sharing that heavierstrategics decision-making with
anybody else.
Like a lot of the time we'redoing that very much solo.
And being in a partnership.
Partnership model with, youknow, somebody in this type of
relationship with revenuesharing.
(21:07):
And a strategic advisor.
It actually releases some ofthat pressure because they know.
That risk is now jointly sharedwith somebody else in a really
unique way.
And I've noticed it reallyhelped reignite a light of
clients who have maybe kind.
Like lost some of their hope orwe're getting a little bit
discouraged and their journey.
Um, and.
And again, it just, it activatesa partnership in a really
beautiful dynamic from what I'venoticed.
(21:27):
Noticed.
So if you're thinking aboutinvesting in yourself or your
business in this modelresonates.
What's with you.
I'd love to explore it furtherand continue to chat.
So.
I'm going to make sure that Ileave a link in the show notes
for how you can get on myprivate one-on-one.
One-on-one waitlist at the timeof this recording, I'm currently
at capacity with clients.
But I'm going to be opening upapplications here soon to start
enrolling for 20.
(21:48):
25.
Um, so if you're interested inthis or want to learn more, I'm
going to leave.
The link again in the show notesfor you to join my waitlist.
Cause I notify my waitlistfirst.
As new coaching.
Uh, and advising spots becomeavailable.
So remember.
Remember, this is all aboutgrowth.
For the both of us.
And I truly believe that when wealign what we define as success
we can achieve.
Even greater results together.
(22:10):
Thank you so much for tuning in,and if you have.
Any questions or want to explorehow this could work for your
business?
Please do not hesitate.
Tate to reach out.
Like I mentioned before, I'llleave a link in the show notes.
Um, To join my privateone-on-one wait-list.
And as I have coaching spots,Open up.
I notify my waitlist first.
So I'm here to help you takethat next big step.
If this feels aligned and goodfor you.
(22:30):
Until next time.
Remember your business.
This should work for you, notthe other way around.
Keep thriving, keep growing andkeep creating a business in life
that truly.
Truly reflects who you are inwhat you want, build it your
way.
Way in most importantly, enjoythe process.
Thank you.
So.
So much for joining this bonusepisode and listening to the
(22:51):
drisha said podcasts.
It means so much to me that youchoose to spend your time.
You know, with me.
On this podcast, you know, ifyou're interested in learning
more about the revenue sharingmodel or how we can work
together.
Again, I invite you.
You to join my privateone-on-one waitlist or visit my
website.
Theresha hawk.com.
Just been recently refreshed.
I look forward to you checking.
Checking that out.
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