My fiancee is a Speech Pathologist managing a small business, where she provides therapy to children with developmental needs. She's considering partnering with another local speech therapy provider(s) to set up an affiliate arrangement, wherein she would receive some type of referral commission for passing on quality leads. She's in a good position as her schedule is full and she doesn't have the bandwidth to help out all the families that inquire about services. Do you have any advice on a reasonable, fair compensation structure for an arrangement like this? Is there any way to accurately track her referrals, or will she simply have to trust that my partners would credit me if a lead converts? Thank you for your help! Best, Vince
There's a lot to consider. For a lead generation deal to be fair to both parties though, a fee for *qualified* leads needs to be in place whether the lead converts or not. Notice there's a big distinction between "qualified" and "quality."
If someone sends you 50 *qualified* leads and you only convert 1 or less, the problem might be with the conversion part and the lead producer shouldn't be held responsible for that.
What you should do is test out 2 or 3 lead generation methods. 1 of them being the other speech pathologist, measure out the conversion rates and then establish a base price. Then monitor the quality of the leads. 45-90 days is a good time-frame to make judgments, comparisons and adjustments.
But what is not equitable to the referring party is to say I will only pay you if your lead converts, because without knowing all the components of the process, the same leads that didn't convert with you might convert really well for a competing business.
A fixed price with a bonus structure would be good to make sure the receiving party is going a good job at actually converting the lead and for the referring party to be incentivized to send leads.