Here is all about closing the sale. When somebody wants to buy, there are different ways you can obviously process the order. You have a list of all the different things. What I want to cover today, each one of those methods requires a different order taking process and different -- you want to make it easy for them. You don't want to make it confusing.
So make it as easy as possible. If you find them on the internet, let them take the order on the internet and make it easy, make it automated. What I want to cover right now is the affiliate and joint venture sales. Because as I said, you can make money next week. So I know some of you are going to go and do some joint ventures here and you might go to somebody else not in this room. Here is what I want to talk about. In the joint venture and affiliate marketing sales, there are different decisions that you have to make.
First one is who collects the money, because there are upsides to collecting the money and there downsides and the biggest one is handling returns. So let's talk about that for a minute. Let's say you are a promoter. You put on a seminar and you have speakers coming in to sell their products and you collect the money. And then the speaker left, you paid them let's say it was 50-50. You pay them their 50%, speaker left and somebody wants their money back. You charge the card. How much money do you owe to the student? All of it, 100%. How much money do you have? Half of it. So now you have to go up to the speaker. It's up to you, to get the other money back, right.
Okay. Let's reverse the roles. You are the speaker and you spoke for promoter and they charge the money and you sold the product and let's say your product is great but it was just not the right product for that person. They want their money back. Now if somebody wants their money back, they have that course sitting on their shelf and they probably already forgot where they got it, who is that client, who is that student who is going to go after to ask for their money back.
Probably you the speaker because your phone number is right there, your website is right there, they forgot where, who the promoter was, what seminar it was at. How much of their money you have? 50%, right. The promoter has the other. Now you are going to go back to the promoter and what if promoter says, well we just -- past 30 days, we don't honor our money back guarantee. So if you were offered 90 days, it's your fault. Does that happen? Yeah, it does.
So what do you do? Here is what you would do. You never collect the money if your portion is under 50% because you still have 100% liability. So don't collect the money on a 90/10 split where you get the 10% and then pay out the 90 to somebody else and then sit there with 10%. You don't want to do that, because ultimately that student can go to their credit card and do a charge back. So ultimately, if you are collecting the money, you do have the 100% liability.
Now more important even than this, is that you need to have strong written agreements that cover refunds along with other things. When you are working with the promoter all these types of issues need to be discussed. Now, most big promoters, they already have their own agreement. So you just go. If you are speaking for them, you will sign and that's it. But if you are doing joint ventures here in a room and if you are both new, you need to have an agreement of how refund is covered, what kind of guarantees are going to be accepted. How long are we are going to honor guarantees. All those things need to be worked out, because I mean, its business, it's a lot of money. You have seen that this business is very lucrative. So you don't want to get in the point where you are having to argue about what really was the agreement.
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