- Joined
- Nov 29, 2022
- Messages
- 330
Rep Bank
$665
$665
User Power: 55%
In the previous post refer a friend programs were presented (see [1]). The second type of programs which can be used to increase purchasing powers of consumers and keep them loyal is revenue sharing programs for customers (RSPs). This type of programs is similar to RFPs, but instead of one-time or fixed number of payments, RSPs pay regularly percentage from sales generated by direct referrals.
For the reason that revenue sharing programs generate stable income streams for consumers they have high loyalty to businesses with such programs.
There are many types and varieties of RSPs. Revenue sharing programs often used in business deals, professional sports, government and corporate fund distributions, as a business model to reward stakeholders, in telecom industry, in online businesses and advertising models (cost-per-sale revenue sharing), and also as a marketing and/or loyalty tool for customers (see [2]).
Revenue sharing programs for customers sometimes called the second generation of referral programs where instead of rewards with fixed value (as in the 1st generation) income streams from direct referrals are given to customers.
Revenue sharing programs for customers often used by small and medium sized businesses to compete with big corporations having RFPs. They also work well in industries with high rates of customers churn.
The only a drawback of revenue sharing programs for customers is that they do not reward customers for indirect referrals. This drawback is removed in the third generation of referral programs.
References
[1] MARKETING - Refer a friend programs
[2] MARKETING - Three necessary conditions for a sale to happen
[2] MARKETING - Three necessary conditions for a sale to happen
For the reason that revenue sharing programs generate stable income streams for consumers they have high loyalty to businesses with such programs.
There are many types and varieties of RSPs. Revenue sharing programs often used in business deals, professional sports, government and corporate fund distributions, as a business model to reward stakeholders, in telecom industry, in online businesses and advertising models (cost-per-sale revenue sharing), and also as a marketing and/or loyalty tool for customers (see [2]).
Revenue sharing programs for customers sometimes called the second generation of referral programs where instead of rewards with fixed value (as in the 1st generation) income streams from direct referrals are given to customers.
Revenue sharing programs for customers often used by small and medium sized businesses to compete with big corporations having RFPs. They also work well in industries with high rates of customers churn.
The only a drawback of revenue sharing programs for customers is that they do not reward customers for indirect referrals. This drawback is removed in the third generation of referral programs.
References
[1] MARKETING - Refer a friend programs
[2] MARKETING - Three necessary conditions for a sale to happen
[2] MARKETING - Three necessary conditions for a sale to happen
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
