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Getting Paid - "Percentage of Deal?"

Discussion in 'Offline Marketing' started by spider7, Sep 18, 2013.

  1. spider7

    spider7 Regular Member

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    Hi Friends,

    Currently listening to an audio by Troyer who talks about getting paid a "percentage" of whatever leads he happens to bring in. For example, he talks about getting 5% commission for helping to land a big deal for a LED company.

    Not sure if this guy is FOS.

    1. How does he make sure he gets paid? (pretty difficult in collecting from a corp who refuses to pay you unless you buck up about 10-15k in legal fees to get it into court and then collecting).

    Anyone else "analyze the opportunity of getting paid per deal?"
     
  2. meikibay

    meikibay Newbie

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    Just my 2 cents in it:

    It's all about the network you create for yourself, meaning, if you can do it with companies that are trustworthy and can keep their word (cause most of the time there wouldn't even be a written agreement) you can be fine.

    Example from my background experience:

    I've worked for an investment bank that has a lot of "middle mans", they only promote their services, and to be honest yeah it's almost "impossible" to track every single sale or deal you close, but with that said the company paid every single dollar.

    They can trust the middle man and the middle man can trust them because it's a win/win situation and both of them will only loose money if they loose trust.

    It's all about the connection in my opinion.

    Cheers
     
  3. lloughry

    lloughry Regular Member

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    That's pretty much what CPA is, and I think you will see it more and more in internet marketing where it is legal. For example in real estate you can only pay someone a percentage of the deal if they have a real estate license. So, a lot of companies that generate real estate leads get licensed.

    It's pretty easy to track when a lead you sent over purchases.

    When working with a new company on this basis we do a customer service follow up inquiry. To date we have had no issues. Think of it this way, if you are the owner of the company and you find someone that is able to send you consistent business that all you have to do is close you would be stupid to jeopardize that. Because if someone did that to me I would call their top competitor and start sending everything to them.
     
  4. eyerish

    eyerish Regular Member

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    I have been involved in the lead business since it began...primarily mortgAge leads. More often than not, we sold our leads via flat fee per lead, but from time to time we tried a few deals that paid a percentage of the closed deal.....which on paper was more lucrative, but in reality was too hard to follow and chase. Mortgage brokers were much less motivated when their leads were free, so a lot of them went to waste.

    The concept can and does work if there is a proper contract in pace and a way to measure the success of the leads you provide them. The key is to do your research and make sure you are dealing with legit people who have the ability to pay you without coming up with dumbass excuses and slow playing you. Remember...contracts are only enforceable by spending money and you can only collect from people with the money to pay you. Moral of the story: trust and integrity of the people you work with are more valuable than any contract you have with them.
     
  5. spider7

    spider7 Regular Member

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    Thanks dudes....BUT....I DON'T THINK you understand.

    EX.
    An LED company lands 100k job. They might change the Lighting for a hugh 7500K SF office warehouse and bill out 100k. Troyer is pushing you to go and get those co's leads...and wait to get paid.

    Do you think a company will pay you after they've gotten paid their fee? Where's your leverage to collect?

    I'm not talking about a CPA network company that has a reputation to uphold. Troyer is talking about helping local businesses land accounts....and then waiting to get paid.....thats a "little different" then working the CPA network.

    You need leverage to get paid. That's why professionals (like realtors, GC's, atys) get licensed. Much easier to collect.
     
    Last edited: Sep 19, 2013
  6. farfetchedmoney

    farfetchedmoney Regular Member

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    I dont know who Troyer is, but,I know who Jay Abraham is, & , if memory , serves me correct he said, that you need an auditing agreement. He also says most business deals are done on trust. You may get stiffed for a few pennies but ignore it because ultimately you're making a heck to alot more, & , you' ll have refferal oportunities and repeat business. Jay said he had a deal where he was making 20,000 a month & probably should've been making $25,000 a month ( i think those were the numbers he said). Anyway, unless you're being outright cheated its probably best to let it ride. By the way, i've heard the same thing in other industries like liscencing inventions, infomercials, & , CPA... it is just the way business is done. If curious about Jay Abraham grab some to his stuff in downloads section if you hadnt read any of his stuff already.

    Good luck
    Keep us updated on whats happening.
     
    Last edited: Sep 19, 2013
  7. lloughry

    lloughry Regular Member

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    I would be a little less inclined to do it, and thus demand more money, on a business that has a long sales cycle. Your LED example would be one with a long sales cycle. Bid the job, get awarded the job, complete the work, get paid net 30... But there is still no difference between sending a buyer to a real estate agent, someone to a dentist for teeth cleaning, or a 100k LED job.

    Or even sending someone to a dating site and getting paid when they enter their credit card.
     
  8. spider7

    spider7 Regular Member

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    @far,

    This happens on a regular basis. Sales ppl get cheated from comm all the time.

    Sure...good relationships and good partners ---a lot to be said for that. BUT, Joe Troyer is preaching do this practice with with strangers (or businesses you pitch). NOT SURE THIS is a good practice.
     
  9. Emp1!

    Emp1! Junior Member

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    OP, no offense, but are you Joe Troyer?

    Regards,
     
  10. spider7

    spider7 Regular Member

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    ridiculous question... If i were Troyer, why would I question One of my own methods?
    how old are you?
     
    Last edited: Sep 24, 2013
  11. Techxan

    Techxan Elite Member

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    The answer is that they would be stupid to stiff you for your share. You will take that business elsewhere, and give it to their competition.

    Yes you need to be able to audit. But generally, a company that has a source of good customers will not screw it up.
     
  12. nanavlad

    nanavlad Jr. VIP Jr. VIP Premium Member

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