The reverse revenue share deal is where you own the asset, and you bring in an expert. So normally, a revenue share deal is when you’re the expert, and you go to someone else’s business, and they pay you a percentage of revenue to be the expert.
Now, I came up with the reverse revenue share deal where you own the asset, and you hire in an expert on a performance basis. So this person wants to do a revenue share deal, but a reverse revenue share deal, because they already own a business and they want someone to actually drive it, run it, grow it, manage the team and allocate capital, essentially be a CEO or general manager.
Am I suggesting that he offer a revenue share deal to that person, or pay them a set monthly retainer? So the answer is yes, you could do that. You could definitely pay a set monthly retainer, that’s a very standard operation to hire a general manager or a CEO. The type of people who are general managers or CEOs are generally going to want some skin in the game from you, they’re going to want some money, because usually they have a job, and usually they’re already earning money. So that means they’re going to need some kind of base or retainer often to be able to do the job. Otherwise, they wouldn’t be able to take the risk. If they’re so good at what they do, and they want to take all the risks and it’s either going to be a side gig, or they probably already have their own business.
So the candidate pool will probably be quite slim for this. Where would you find someone like this? Probably from your own client base. Someone who’s actually been through your program, who knows your business and has high competencies.
See our products here