Another idea...
You said your plan was to let them receive 60% commission for 2 years, then you would take over "your" customers from then on (assuming non-compete is over).
To ease them into you "taking over the clients" you could gradually reduce the amount of commission you would be splitting with them.
My numbers are hypothetical, but you could offer something like you getting a certain percentage of commission (40%) for the first 2 years, then every year after that, the amount you will be splitting with them will reduce by 10% each year (or whatever you think would be a fair % to reduce their commissions by). So that way within 8 years you would have 100% of your revenue on your own.
Example:
Years 1 & 2 you get 40%
Year 3 you get 50%
year 4 you get 60%
year 5 you get 70%, and so on...
year 8 you will have 100% of "your" commission.
I think this idea would ease them into accepting the idea of your takeover. They wont feel like you will be splitting 60/40 with them for 2 years, then just dropping off and you getting 100%.
I have not been into this business long enough to know exactly what agencies are worth, that is why I gave hypothetical numbers and percentages.
Just an idea, hope it helps...
I better get off this computer before my girlfriend gets mad at me for being on the computer on Christmas HaHa!
Merry Christmas!
-Craig
You said your plan was to let them receive 60% commission for 2 years, then you would take over "your" customers from then on (assuming non-compete is over).
To ease them into you "taking over the clients" you could gradually reduce the amount of commission you would be splitting with them.
My numbers are hypothetical, but you could offer something like you getting a certain percentage of commission (40%) for the first 2 years, then every year after that, the amount you will be splitting with them will reduce by 10% each year (or whatever you think would be a fair % to reduce their commissions by). So that way within 8 years you would have 100% of your revenue on your own.
Example:
Years 1 & 2 you get 40%
Year 3 you get 50%
year 4 you get 60%
year 5 you get 70%, and so on...
year 8 you will have 100% of "your" commission.
I think this idea would ease them into accepting the idea of your takeover. They wont feel like you will be splitting 60/40 with them for 2 years, then just dropping off and you getting 100%.
I have not been into this business long enough to know exactly what agencies are worth, that is why I gave hypothetical numbers and percentages.
Just an idea, hope it helps...
I better get off this computer before my girlfriend gets mad at me for being on the computer on Christmas HaHa!
Merry Christmas!
-Craig
