Revenue Sharing Without Fees

The speakers discuss a successful business model where selling implementation and sales systems to small businesses works best when offered with a risk-free, revenue-sharing approach. This model was proven successful by Alex Hormozi with gym owners and could be replicated in other industries.

Key Points:

  • Risk-Free Implementation Model:

    • Only get paid after increasing client's sales (e.g., after $30,000 in additional revenue)
    • Take 30% of the increased revenue
    • No upfront costs for the client
    • Builds trust through risk absorption
  • Complete System Delivery:

    • Provide pre-made Facebook ads
    • Share proven email sequences
    • Give sales scripts
    • Offer complete implementation services
    • Include product fulfillment options
  • Business Model Advantages:

    • Very high margin business
    • Higher scaling potential than traditional course businesses
    • Can be replicated across different industries
  • Potential Industries for This Model:

    • Restaurants (especially ghost kitchens)
    • Physical therapists
    • Doctors' offices
    • Real estate brokers
    • Gyms (can be recycled now that original creator exited)
  • Sales Strategy:

    • Start with revenue share offer (e.g., 50/50 split)
    • When client hesitates about high percentage
    • Pivot to fixed fee option (e.g., $5,000)
    • Creates urgency and makes fixed fee seem more attractive
  • Implementation Approach:

    • Keep running your own business as proof of concept
    • Use results for social proof in marketing
    • Offer both DIY (course) and done-for-you options
    • Bundle additional services and products for extra revenue
07:01 - 08:34
Full video: 11:40
SP

Sam Parr

Host of MFM and fitness influencer

Sam Parr is a serial entrepreneur and business media pioneer.

In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.

Sam led the charge in making newsletters popular when few believed in their potential.

After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.

Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.

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Fitness Influencer