July 19, 2016

Fair Compensation For Reactivation Products

We're inundated with reactivation opportunities ... search or email marketing or vendor overlays or social nonsense or mobile strategies ... somebody is always telling you what you have to do to be successful ... somebody who wants to be paid ... by you.

And too many of you listen.

Have you ever run a profit and loss statement on a vendor-hyped reactivation tactic? Have you ever looked at who gets paid?

Here's an example ... the vendor-hyped reactivation tactic actually works, so that's a blessing. But tell me what you see when you look at the profit and loss statement.

The RED number is how much the vendor gets paid for the tactic.

The GREEN number is how much you get paid for using the tactic.

Can you see why the vendor community loves this stuff? They get paid 6.6 times as much as you get paid for the tactic.

I know, I know, I can hear the vendor community howling as we speak ... "WE MADE YOU MORE PROFIT THAN YOU WOULD HAVE MADE WITHOUT OUR TACTIC". Yup, that's correct.

But come on!

Again ... the vendor is making 6.6 times as much cash as you are making ... your employees are working to make the vendor 6.6 times as much cash as the employees generate for your own brand.

And that's what happens when the tactic yields profit.

How about all the times when the tactic is not profitable ... which happens all the time!!? All those times your vendor tells you that you will make up the volume on lifetime value?

Any reactivation tactic should include a fair distribution of profit/cash. The vendor should not earn 6.6x as much as you earn. Ever.