For years, people have pursued the traditional agency model in which they charge companies a retainer and deliver a service like marketing, sales, ads in exchange. But we've developed a new way, which we call Growth Partner in which instead of taking a fixed fee, we charge a % of profits or revenue. This aligns the incentives of the service provider and the company. Like 5 contrarian but persuasive marketing angles we can use to convince people to pursue the growth partner business mode instead of the tradional agency model
Aligned incentives: By charging a percentage of profits or revenue, both the service provider and the company have a shared goal of driving growth. This aligns the incentives of both parties and ensures that the service provider is fully invested in the success of the company.
Flexibility: The traditional agency model can be inflexible and may not take into account changes in the market or the company's specific needs. A growth partner model allows for more flexibility and adaptability, as the service provider's compensation is directly tied to the company's success.
Risk reduction: With the traditional agency model, the company bears the risk of investing in a service without knowing if it will produce a return. A growth partner model shifts that risk to the service provider, as their compensation is directly tied to the company's financial performance.
Long-term focus: A growth partner model encourages a long-term focus, as the service provider's compensation is tied to the company's ongoing success. This can lead to more sustainable and strategic growth for the company.
Cost savings: Traditional agency models can be expensive, as the company is paying a fixed fee regardless of the results. A growth partner model can be more cost-effective, as the company only pays for results. This can be a more efficient use of resources for the company and can lead to a higher return on investment.
Now list 5 ways this model is beneficial to the service provider
Increased earning potential: By charging a percentage of profits or revenue, the service provider has the potential to earn more than they would with a traditional fixed fee model. This can lead to increased income and financial stability for the service provider.
Aligned incentives: As mentioned before, by aligning the incentives of the service provider and the company, both parties are invested in driving growth and success. This can lead to a more productive and successful partnership.
Long-term relationships: A growth partner model encourages long-term relationships between the service provider and the company. This can lead to a more stable and sustainable business for the service provider.
Greater autonomy: A growth partner model can give the service provider more autonomy and control over their work, as they are not bound by a fixed fee or contract. This can lead to greater creativity and innovation in their work.
Ability to scale: A growth partner model allows the service provider to scale their business along with the company's growth. This can be beneficial for the service provider as they can grow their business along with the company and increase their earning potential.
