23 Important Things to Look for a Cooperative Marketing Company
What is cooperative marketing?
It is a little known business model that allows an individual to actively participate in profit-sharing with the company by purchasing actual customers that have bought a product from the company.
For a small fee, you can purchase the rights to share the profits with the company for every purchase made by that customer for life.
My friend and mentor Brad Weinman researched the cooperative marketing industry’s most successful companies, money earners, and attorneys, and as a result, put together the following criteria regarding what to look for in a cooperative marketing company:
(Points 1-6 in bold were designated as most important from his research.)
1. The rep must be able to make money without having to recruit a single person.
2. The rep must be able to make money without having to sell a single product.
3. Company must have a system in place for new customer acquisition.
4. Company must have a plan for customer retention.
5. Company must have a plan to market and sell new products to existing customers.
6. Company must provide outstanding Customer Service.
7. Company must be at least two years old. (if less than two years, company has NOT evolved to a point of stability).
8. Management must have a diversified background.
9. Company must have full time Customer Service with a Manager and Staff. This Customer Service must provide telephone and email support. Friendly, professional and responsive service.
10. History of introducing new products and services to existing customers.
11. Must have both business-to-consumer and a business-to-business model(s) to market.
12. Compensation Plan has to enable and reward the rep. or affiliate for selling the product, not only for recruiting. (I.e. Average rep will only recruit 2.8 people their entire life.)
13. Company must have a history of Shipping the Product and Paying Commissions on time.
14. Healthy Customer to Rep. Ratio must be 4 to1 minimum. A 7 to 1 ratio is great and preferred.
15. Product must have a large and growing marketplace (Today and for the next 10 years. Not a fad or trend)
16. Product must be in demand and consumable (Creates an emotional attachment to the product).
17. Product must work and perform at a consistent and high level.
18. Product must be easy to use (Fast, easy, and fun to operate/consume).
19. Product must be easy to refer (Fast, easy, and fun to introduce to prospects).
20. Product must have value (Not what you spend, but what you get and what it’s worth. No $50 soap, padded for rep commissions.)
21. Product must have new or unique features (USP…unique selling proposition)
22. Product must have monthly renewal (Creates ongoing consumption and, as a result, residual income.)
23. Product has to stand by itself…would YOU buy the product if no business opportunity were attached?
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