Profit Sharing

[alyaly]

I have tried something new at my website. It's like a profit sharing program. If I'm making money then my members make money (actually it's more like a discount on their membership) at the same time. It seems to be a lot of bookwork to set it up but I think it will help my customers remain my customers and perhaps word of mouth will build my membership as well.

[Joseph]

Good one. If you have thought of sharing profits of the website with your Customers then your company will definitely get the benefit of this. However, according to what you have said, it is more like a discount given to customers. Now the question is, will you offer discounts to new customers or existing customers

If you are offering discounts (profit sharing) to existing customers then it would be a good option and most of the companies do this in order to maintain long term relationship with customers. However, if you are offering discounts to new customers then this would be called as a promotional technique or something like that (it's not a bad thing, infact, one can do this in order to get more sales and customers ).

If you are offering these discounts to customers (whether, new or old) it's good, however, according to me, you should make sure that you offer quality services and products to customers and you should make constant efforts to improve the quality of services and products so that you can maintain long term relationships with your customers.

[Dave M]

I've used something similar for my blog community, actually. I'm using Wordpress MU where basically people can sign up for their own Wordpress blog. There's more to it than that, really, but that's basically what it is. Anyway, it isn't quite like what you're using, but what I do is I allow users to put their own ads on their blogs, which shows up on their blogs 50% of the time (the other 50% shows my ads). It works for me because my users get hosting and never have to worry about script management, and they also get to make a profit.

[bossbob]

I like this idea of profit sharing. It sounds like a great way to keep members happy and bring in new members a well.