In this live coaching session, Abdoulaye Ba and a participant (Speaker B) dissect a $12,000 upfront plus $5,000 follow‑up pricing model for a done‑for‑you sales service. They walk through concrete numbers – a $240 K monthly revenue floor, a 5 % revenue‑share above that floor, and the split between recurring and new business. The dialogue explores how charging an upfront fee can make the provider look like an expense, how a revenue‑share floor protects the provider while aligning incentives, and how the client’s existing recurring revenue (e.g., $200 K recurring, $40 K new) affects the economics. They calculate ROI: with a 75 % show rate and a 40 % close rate, the client could generate roughly $70 K in new cash in month 1, turning a $12 K initial loss into a $18 K profit, justifying a $5 K month‑2 payment. The conversation then pivots to suitability: high‑revenue owners ($240 K/month) can sustain the done‑for‑you model, whereas lower‑revenue owners ($50‑100 K/month) would be better served with a done‑with‑you approach to avoid churn and resentment. Throughout, they stress the importance of simple, aligned pricing, realistic performance targets (show rate 75 %, close rate 40 %), and the impact of churn on long‑term profitability.
Chapters
But when day 31 arrives and you come with that new bill, he'll hate you. So he starts out, he's already in the minus 12K right away.
Yes. Okay.
So the business owner will look at you as an expense. You missed out on some revenue and now you're not getting anything of the upside. So they got their return on investment almost back times 3 on you already in the first month.
Yeah.
Per month, 240K per month. Cool. So you're going to charge 12K upfront, right? And then 5K after. 90 days. Within the first month, if you're doing sales for that person as well, do you charge them the revenue share? Like everything you close for them, you, you charge them the revenue share?
No.
So the first month, even if the sales came from your framework, you're not charging them any revenue share?
No. So I wasn't even looking to actually charge him revenue share on this one.
Why? No, I mean like if we're going to do a done-for-you.
Okay, if it's a done-for-you, then I would say 5% revenue share on everything, right? I was thinking of only— I would actually put a floor Right? Or agree to a floor with him of 240k a month right now, and everything above that I take 5%.
240k per month?
240.
240k per month as a floor? Yeah, as a floor.
Yes.
Okay, but the thing is like this is a mix of recurring revenue and, and new, and new revenue.
Exactly.
So right now you're actually putting like all the favor on his side, which is great, but not as great for you because he was not even making 240k per month in new cash.
In new cash, yeah.
Does that make sense?
Makes sense. So how would you, how would you actually make it, you know, more reasonable for my, for my case?
You want to keep your offer simple. Oh, I'm going to only charge revenue share at that floor. While like, if, if for example, right, the floor was $240K, let's say, but you hit $239K, for example, like you did all of that work right on your side, you missed out on some revenue, and now you're not getting anything of the upside.
Yeah.
Doesn't make sense. You grow together.
Mm-hmm.
Right? So if he makes a lot more money, you make a lot more money as well. That is how it should work. So I would always keep that simple, right? You're charging the upfront and the rev share, the rev share stays the same.
Yeah.
For everything that gets closed and that is attributed to you, anything that you've built it out.
Mm-hmm.
Right. That managed to closing deals, that is the revenue attributed to you. So you would take 5% share of that. For example.
So basically new business, all new business.
New business attributed to you.
Yeah.
If he would get referrals and stuff, right? That wouldn't make sense that he would pay your ref share for that because that's not attributed to you as you were not in that process.
Makes sense, right? Yeah.
So let's do the math if this would make sense for him, right? So he starts out, he's already in the minus $12K right away. Yes.
Okay.
So how much new business is, is he doing? Is he doing?
Yeah. He's doing in new business recurring is $150K a month right now recurring. So in new business that's $90K.
Okay, cool. So ninety k new, hundred fifty k MRR. Cool. So that would mean that okay, right? He would start off again with ninety k in the next month.
Yeah.
Could probably easily pay that off, but that's not attributed to you.
No.
Right? So in your investment that he made into you, he didn't get any return yet. Okay. So minus twelve k. Right? Now you help him with the same amount of leads and book calls as he's getting, and in the first month. Right. A show rate of 85%. How realistic is that?
No, I wouldn't say that we get it in the first month. The first month should, we should be able to get it to 75%.
75%.
Yeah.
Okay. So that means that if I get my phone again, so that means that basically let's say he has the same amount of booked calls, right? 102. And now he has a show rate of 70%. That's 71 sales calls.
No, 75%.
Uh, 75%?
Yeah. So I, so now he's at 68%.
Yeah.
And I believe in the first month we can definitely increase it to 75%.
Okay. 75. So 102 times 0.75. That's 76 shows that he would get. Okay. Okay. 76 shows. Let's do the math, right? About, you know, does does it make sense for him to pay that 12k and that 5k after next month already, right? Because you don't want it to turn into resentment.
Exactly.
When you come with the bill of 5k.
Yeah.
By next month. So, okay. The first month he starts off with you, right? That's already minus 12k the first day. Okay. Yeah. Now he's making 240k per month already.
Exactly.
How much of that is new business?
Only 40. So he has 200K recurring.
Okay, 40K new business, you said?
Yeah, 200K recurring.
Okay, recurring.
Yeah.
Okay, in a recurring business. Okay, that means like he's already starting off with 200K in recurring right from day one. Yeah, already. So a lot of people would say like, yo, this guy's already profitable on that -12K investment.
Exactly.
But that 200K was not attributed to you. So the business owner will look at you as an expense. And what did I get out of Kevin? Myself, right? It will not look like oh the business was doing well, 240k per month, so the 12k investment was worth it because that's not attributed to you. That's like not your doing, basically. Okay, looking at his numbers, right? Let's say the show rate.
Yeah.
To how much would you be able to increase his show rate, which was I believe 68. 68.
Yeah.
The first month. Is it realistic for you to hit that 85% already?
No, no. So in first month, I have the goal to hit 75%. Which is very much doable. If you look at his pre-call sequence right now, which is nonexistent, and when we come in, it's very strong. So 75%.
So on the 102 booked calls, right? Let me actually make the calculation. Basically on the 102 booked calls, right? Yeah. Let's say they're doing the same numbers, but you increase their show rate now to 75%. Yes. All right. That means that they're getting 76 shows.
Yes.
Okay. Now the close rate as well, you're training a lot of closers on actually closing better and increasing their close rate and making a lot more money. Yeah. So naturally you'll, increase their close rate as well. So what would be realistic for month 1 to have?
Month 1, now they're doing like conservatively. Yeah, they're doing 36% close rate right now.
36? Yeah, overall.
Yeah, without the right frameworks, without the right structures as well. Especially the founder, he's just winging it, but because he's a founder, he gets these closes in. Um, but I would say, yeah, 40% is, is realistic. It's fairly low, by the way.
40%? Yeah, very conservative. So that's 30 closes.
Exactly.
Okay, 30 closes at $2.4K, right, that they're getting. That's $72K Let's just do $70K in new cash, right? Give or take. Yeah, in new cash for that. Before, they would do less cash than that. Mhm. Right. So if you looked at it before, let me have the calculation.
New business before was $40K a month.
So if we're looking at it, the $70K in cash, right, they actually got $30K in new cash more compared to what they're actually getting, what they got last month, or what he told you, right? Yeah. So they got their return on investment almost back times 3 on you already in the first month. Right? That guy on month— on day 1, sorry, he was minus $12K, and now that business is up like literally $18K.
Oh yeah, okay, makes sense.
Right? Of course he would like to invest another $5K into you to keep that same system so he can earn at least another $30K in cash.
Yeah.
Right? So now month 2 starts, he pays you the $5K. Now $18K that he has in profit has to give you $5K of it. Now he has $13K on day 1. If we keep everything the same, right, on day 30 He will be up another 34K on day 2, on day 30, sorry, or 31, whatever. Yeah, right. So this guy is very much worth it, the done for you, and it makes a lot of sense for him.
Okay, okay, okay. Yeah, now I see.
Do you see? But you also see if this was a 50K per month owner, yeah, or less than 100K per month owner, that the maths wouldn't be that lucrative for him.
Yeah.
Where it wouldn't make sense to get him on for the done for you, but probably would make sense to get him on for the done with you. So you can use those frameworks to scale up to that level of a business owner like this, that you now can upsell him to done for you. To a done for you. Because if you would— someone who's making $50K per month, okay, day 1 he can pay you that $12K, but when day 31 arrives and you come with that new bill, he'll hate you.
Yeah, because the—
and then there's the churn high.
Yeah, the cashback isn't, isn't there yet. Makes sense.
