During the first 3 months of the company’s existence, we received 7 offers to join various types of affiliate programs from IT products, services, agencies and consultants. It’s a very simple sales model. You have customers who buy your service or product. You are then approached by someone else who will pay you commission (usually 10% to 20% of the transaction value) for your customer’s order.

We don’t use this model. We won’t use it either. And if we catch our people making such deals under the table – we will fire them. I don’t know another company that takes such a sharp approach as we do. This blogpost is for the suppliers to understand why we have decided to take such a stance.

Possible scenarios

Consider a scenario where we have partner programs with various types of suppliers, e.g. marketing automation. The customer comes to us so that we can help him decide whether he should implement a solution in this area – and if there should be a solution in place at all.

  • We recommend the client doesn’t use a marketing automation solution
    We do not earn anything besides our usual fee
  • We recommend the customer uses a low-cost marketing automation solution
    We earn 10%-20% of the implemented solution
  • We recommend the customer uses an expensive marketing automation solution
    We earn 10-20% of the implemented solution – much more than in option B
  • We recommend the customer uses an expensive marketing automation solution we don’t have a signed partnership agreement with
    We do not earn anything but our usual fee and we have a sense of wasted opportunity
client recommendations

In scenarios B and C, the customer has the right to doubt the integrity of our consultation. And questions like “Why did you recommend this solution to me?” or “Why aren’t you recommending solutions you don’t get commission from?” become embarrassing. With time, our company would drift towards implementing more and more expensive solutions and stimulate customers to spend more and more money – of course, with our friends and partners.

Let’s now take a look at another scenario – the one that exists today. The same customer comes to us with the same issue. This time, however, we don’t have any partnerships.

  • We recommend the client doesn’t use a marketing automation solution
    We do not earn anything but our usual fee
  • We recommend the customer uses a low-cost marketing automation solution
    We do not earn anything but our usual fee
  • We recommend the customer to use an expensive marketing automation solution
    We do not earn anything but our usual fee
recommendations client casbeg

We just want to be fair

To make sure that our team is motivated to do right by our clients, we want our employees and the company to be encouraged exclusively by the money paid by our clients. We believe that this is fair to our clients. In this way, we make sure that we want to provide our clients with the most value (calculated in USD and EUR earned by them). We don’t want to encourage ourselves to make them spend a lot of money on any software, training or marketing agency service. We also do not want the money we earn to influence our decisions. People and companies respond to incentives. We do too. This is our way of making sure that we encourage ourselves to the right things.

But what should anyone who wants us to recommend their product or service to Casbeg customers do? It’s easy. Make the best product or service that solves a problem for small and medium-sized B2B companies. Convince us. When you convince us that you are really delivering value, make sure you educate our people so that we recommend your solution as intended. Answer our e-mails quickly. And when a client comes to you and tells you that you were recommended by a Casbeg consultant – make sure that they get the best possible service. Your customer acquisition cost on the clients we recommend is $0. If you want us to recommend your solution to our clients, continue to invest your marketing savings in servicing our clients the best you can.