Tim DaviesCEO Projekt Rising - The expert AI partner for SMEs

Implementing profit-sharing models with customers for ongoing relationships

3 May 2024

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Short excerpt from a May 2024 YouTube discussion (Tim Davies + another speaker) about using profit-sharing and reduced upfront pricing combined with recurring revenue to sustain ongoing customer relationships and continuously improve delivered technology. Speakers describe splitting fees into lower upfront charges plus monthly shares so vendors remain incentivized to keep products current and aligned with customer success.

To the way we like to work with customers on an ongoing basis where there's effectively a profit share or recurring revenue for us. And in exchange we continue adding in that latest capability. So where it's an ongoing relationship with a company where we've already built something that's breathtaking, we can continue to make sure that is as good as it gets all the time because we're being paid to be part of that journey with the customer. We're sharing in their profit and in their success. Love it.
I think that's a win or we know it's a win win because customers keep coming to and talking about it where, you know, instead of charging somebody a big amount, fat amount to build some, an app or a software development for them, we charge a lot less upfront. And then we, we sort of split, as you've just said, we split the. Into a monthly, monthly charge because we want to be able to keep offering them the best tech that's out there.