I sat with some people who have a large ecommerce site. They were one of the few sites that made it through the Tech Bust from the last couple years ago. They started out by getting money on a per acquisition basis but changed their business plan when they came to realize something about human nature. Not everyone tells the truth.
So, instead of paying on a per acquisition (or sale) basis, they are selling the leads and making a good business of it. It reminds me of an agreement I made about a year and a half ago. I agreed to pay this guy, Ted, 10% of all revenues derived from a lead he gave me. Boy, did it hurt to have to shell out the money to him, especially because I wasn't making much on the project. Even though the project ended up being over $11,000, Ted ended up making just a little less than me because most of the money went to the programmer I had hired.
Of course, I learned in the process two things. One, that I should build a little extra into the bid. And, two, agree to pay a commission of 5% instead of 10%. The best lesson I learned is that I need to honor my agreements. I don't think Ted would have ever known the total amount of the contract but I knew. And I couldn't have lived with myself if I had tried to shortchange Ted.
Good for Ted for making a good deal. He made $1,100 for just passing along a lead. And good for me following through on a commitment. I'm not much of a believer in Karma, but I do believe in reaping what you sow. I sowed honesty, so I trust that people will sow honesty with me in the future.
