Revenue Model Comparison
Four ways to structure your partnership. Each one works differently depending on your agency type, risk tolerance, and growth goals.
Revenue Share
You earn a percentage of what the client pays
How It Works
You sell the service at a set price. A percentage of that revenue goes to you, and the rest covers fulfillment costs. The more clients you bring, the more you earn. Lower risk because you don't pay upfront for delivery.
Best For
New agencies or solopreneurs who want to start earning without large upfront costs. Great for testing the partnership before committing to higher-margin models.
Example Scenario
You sell a local SEO + reputation package for $2,000/month. Your revenue share is 30%. You earn $600/month per client with zero delivery work. Sign 10 clients and that's $6,000/month in recurring revenue.
Pros
- Low financial risk to get started
- Aligned incentives: both parties win when clients stay
- Scales naturally as you add clients
- No need to manage delivery or hire staff
Cons
- Lower per-client margins than markup models
- Less control over pricing flexibility
- Revenue depends on client retention
Flat Fee
Fixed monthly cost per client, predictable margins
How It Works
You pay a fixed monthly fee per client for fulfillment. You set your own retail price and keep the difference. Your margin is the spread between what you charge and what you pay.
Best For
Established agencies with consistent client flow who want predictable costs and higher margins. Works well when you've already proven you can sell and retain clients.
Example Scenario
You pay $1,200/month per client for the full service stack. You charge your clients $2,500/month. That's $1,300/month profit per client. With 10 clients, you're earning $13,000/month.
Pros
- Predictable monthly expenses
- Higher per-client margins than revenue share
- Full control over your retail pricing
- Easy to forecast revenue and growth
Cons
- You pay the fee even if the client churns early
- Requires upfront investment per client
- More financial risk than revenue share
Referral
Send clients our way, earn a referral fee
How It Works
You refer a client to us. If they sign up, you earn a one-time or recurring referral fee. You don't manage the client relationship or handle any delivery. Zero work after the introduction.
Best For
Consultants, coaches, or complementary service providers who come across businesses that need marketing help but don't want to offer it themselves. Also good for agencies that are at capacity but don't want to turn away leads.
Example Scenario
You refer a local dental practice. They sign up for a $2,000/month package. You earn a $500 one-time fee or a $200/month recurring commission for the life of the account. Refer 5 clients on recurring and that's $1,000/month in passive income.
Pros
- Zero delivery work or client management
- No financial risk at all
- Can be a passive income stream
- Good way to monetize leads you'd otherwise lose
Cons
- Lowest earning potential per client
- No control over the client relationship
- Doesn't build your agency brand
Markup / Reseller
Buy at wholesale, sell at retail. Maximum control.
How It Works
You purchase services at a wholesale rate and resell them at whatever price you choose. You own the client relationship completely. The fulfillment is invisible. Your brand, your pricing, your terms.
Best For
Agencies with an established brand, strong sales team, and the confidence to set premium pricing. This model rewards agencies that can sell value, not just services.
Example Scenario
Your wholesale cost is $1,000/month per client. You package it with your strategy, account management, and reporting, then sell it for $3,500/month. That's $2,500/month profit per client. With 10 clients, you're at $25,000/month.
Pros
- Highest per-client margins of any model
- Complete control over pricing and positioning
- Builds real equity in your agency brand
- You own the full client relationship
Cons
- Highest upfront cost per client
- You absorb the loss if a client cancels early
- Requires strong sales skills and client retention
At a Glance
| Model | Your Risk | Your Margin | Delivery Work | Best For |
|---|---|---|---|---|
| Revenue Share | Low | 20-35% | None | New agencies |
| Flat Fee | Medium | 40-60% | None | Growing agencies |
| Referral | None | $200-500/ref | None | Consultants, coaches |
| Markup | Higher | 50-70%+ | None | Established agencies |
Find Your Best Fit
Not sure which model is right for you? Take the partner quiz and we'll recommend the best structure based on your agency type and goals.
Take the Quiz