Have you ever gone shopping for something you really wanted only to find all the shelves empty. Then you go from one store to the next and at each store you find all the shelves empty. This can be very frustrating and end up wasting a lot of time, however many computer business owners go in pursuit of an IT marketing compensation plan commonly called having ‘skin in the game’ that doesn’t really exist. This concept would be very attractive for the consultants because it means they only pay if and when a marketing techniques produces results. I have tried to pitch this idea to a few advertisers like the local radio station and newspaper but for some strange reason when I suggested that I only pay when a sale closes they looked at me like I was crazy! Why can’t this model be found in the market place but more importantly why keep searching for it?
If ‘skin in the game marketing’ can’t be found by contacting a few local advertisers then could this really be a viable strategy? If you think about this for a few minutes it might be easy to see why this is not something that any profitable marketing company would ever consider doing. The first reason is that it turns the marketing company into a bank where they end up funding your advertising. In the case of running the newspaper ad it would mean they spend their own money paying the art designer and editors along with tying up that advertising space. Since every single business would apply for this unique billing structure then all the normal revenue would dry up completely. Then the newspaper would have to start reviewing which companies products or services were viable along with employing massive teams of people to follow up and track when any sales were made.
The biggest reason why this type of compensation won’t work is because the technology firm that might take advantage of the ‘skin in the game marketing’ never really has any ‘skin’ in the process themselves. Since they haven’t paid anything they really don’t risk much and they would never work as hard to close sales. There is really no reason to ever spend any time arguing about this because in the end it’s just a ‘straw man’ since it doesn’t really exist anywhere. The biggest risk in the end is with the computer consultants that remained convinced to keep searching for this type marketing compensation plan because they waste so much time only to find the proverbial shelves empty!
John Black is the Marketing Director at MSP Telemarketing and has over 10 years experience marketing for IT providers and var marketing to get them more IT sales.