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Pay For Results
A pay-for-performance based agreement where a customer pays based upon the mutually and clearly spelled out results generated by a specific action or campaign.
The key is that the results should be clearly spelled out, specific and measurable.
Examples:
General terms like ‘create good PR’ or ‘generate more sales’ are hard results to quantify and would be poor areas for a pay for results campaign.
Better results include ‘having editorial placement during a 45 day span using major print and broadcast media’ or ‘increase sales volume net 18% over the next 180 days.’ This allows each side to know the measuring stick of what needs to be specifically achieved.
Action Steps
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Look at aspects of your business, figure out where in the marketplace you can find others to perform it and try a pay for results program.
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Are their examples of this has been used by other businesses you know that you can use their example?
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