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Marketing Strategy: If you own a marketing firm and you get a percentage from clients, what is a decent agreement and term?
MP
MP
Mario Peshev, Business & Digital Advisor for SMEs ($500K - $25M) answered:

We do marketing partnerships with some of our ongoing accounts. Terms vary from fixed-fee retainers through fixed amount + 10-20% split share to 30-40% fee on new deals.

Depending on the specifics of the business and the marketing services provided, the percentage could be for a specific product/service, or the entire business. We do inbound marketing and partnership outreach which increases the brand awareness, grows the email lists of our clients and allows for scheduling cross-promotion campaigns and webinars that support the entire business - hence the added benefit of shared revenue across all products and services.

Limiting revenue share for a product is more applicable for larger businesses that have an established marketing and advertising strategy and bring a good number of customers this way. Then a marketing strategy could be shaped around a specific product or a solution which justifies partnering only on a specific venture.

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