What Is Pay For Performance (P4P) Marketing?
Skyworks formulates and promotes your “story” to generate leads and sales and then only makes money when actual payments are processed for your business. A “100% Pay For Performance (P4P) Partnership” means you don’t pay anything and Skyworks takes a percentage of the new sales it generates as its remuneration. A “Partial P4P Partnership” means some or all of the marketing services are provided on a P4P basis and you pay the media costs.
Is This Available For Any Business?
No. Skyworks is seeking partnerships with businesses that possess specific and unique qualities. The idea is to partner with entities that not only have a high profit potential but also lend themselves to a particular category of marketing practices.
What Are Those Qualities?
Skyworks is seeking businesses with these qualities for a potential P4P partnership:
- Unique products and/or services with a high margin.
- Products and/or services that potentially could be priced much higher in the future.
- Products and/or services that can be marketed nationally (internationally is helpful, but not mandatory).
- Skyworks can envision a way to generate short-term, fast revenue for this business (minimally $100k in 90 days), which will then fuel significantly higher long-term growth.
- There is a definite “personality” behind the product/service who has already established industry-leading credentials and expertise.
- The personality has a compelling story.
- The personality is a good communicator, which includes written, one-on-one and group (speeches, seminars) communications, and would be comfortable communicating via video, TV, radio, etc. if needed.
Why All This Emphasis On “Personality”?
A specialized type of “Personality Marketing” lends itself well to the Skyworks P4P model. In brief, by focusing publicity, marketing and advertising campaigns on a potential or established industry expert with the goal of creating and/or further elevating an “industry celebrity,” such offers a triple whammy of opportunity:
- Creating and/or fanning the flame of a “rising star” attracts more interest (which translates into leads and sales).
- By focusing on the personality and his/her expertise, the marketing campaigns de-emphasize competition. Traditional product/service marketing can create a “halo effect” around a product/service, which means promotions that raise the awareness of a particular product/service can inspire potential buyers to research and purchase competitive offers. With personality marketing, buyers can only get the stated expertise, products and/or service from the personality’s business.
- Finally, by elevating the personality’s stature, the prices for the personality’s products/services have a potential to be substantially increased. For comparison, think in terms of the differences between the highest-paid actors/artists and medium-priced actors/artists. Or for that matter, the most well-known and highest priced experts of any industry versus medium-priced and lesser-known experts in the same field.
What Criteria Is Skyworks Seeking In A P4P Partnership?
Here are three over-arching criteria:
- Does the product/service offer true value?
- Is the personality friendly and easy to work with?
- Can we successfully work together in a partnership?
How The Heck Would You Know If We Can “Successfully Work Together”?
By way of a partnership test or “pilot.” Sort of like a TV pilot, which is a test to determine if a series will be successful. In other words, after determining an apparently workable fit based upon the above “Qualities” and “Criteria,” the next step would be a 90-day pilot for a Pay for Performance partnership. Expectations would be outlined in an agreement, including designated milestones and performance metrics. If the pilot demonstrates that the partnership can be profitable, but “working together” poses undesired challenges, then the pilot would not move into a long-term partnership. Conversely, the working relationship could be successful, but the partnership does not yield an acceptable return on investment (ROI), hence, the pilot would not evolve into a long-term partnership.
Visit the following link for more info on How to Test Your Business Idea – The Right Way.
How Does Skyworks Get Paid?
Skyworks keeps 30% of the sales, but to answer that more completely, let’s look at where ALL the money goes, not just to Skyworks. For that, we need to talk about the Skyworks 50/30/20 launchpad.
What Is The Skyworks 50/30/20 Launchpad?
A vital component of this Pay for Performance model is paid advertising. And that money also comes from the sales. So, here is the overall distribution of revenue:
A) 50% goes to the business providing the product/service
B) 30% goes to Skyworks
C) 20% goes to advertising/promoting the personality/business. This is actual media money for paid advertising, whether that be online, print media, radio, TV, etc.
Are There Any Other P4P Partnership Opportunities?
The above “Qualities” and “Criteria” govern the potential for a Skyworks Pay For Performance Partnership. A business could potentially become more attractive to Skyworks by investing capital into the initial advertising media, which would make it a “Partial P4P” pilot in the beginning.
Are There Any Disadvantages To A P4P Partnership?
Presuming your business qualifies and the marketing creates the intended result, the most obvious disadvantage would be long-term cost. It would be less expensive to pay several thousand dollars a month for marketing services than to pay a percentage of increasing sales. However, that’s why Skyworks is taking the marketing and business risk in the first place. Additionally, all the media created as part of a P4P partnership, including websites, videos, TV commercials, graphics, print ads, Internet ads, radio spots, etc., is owned by Skyworks Marketing, whereby in a traditional arrangement, the media properties are purchased and owned by the client. (Of course any media properties already created and owned by the client remain the client’s property).
What’s The Next Step?
If you consider that your business has a majority of the above “Qualities” and “Criteria,” just click “CONTACT,” describe a little bit about your business and ask to schedule a phone meeting. Most of the time you will receive an email response within 24 hours.