I would like to partner up with individuals from different countries to promote my recruitment software in their own market. What do you think of that?
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Iâm one month away to releasing my web application (recruitment software) and I need your comments on something I would like to do. It was clear from the start for my co-founder and I that our first and main market should be the USA. Then, as we are both French, France should obviously be our second market. But I really want to expand from the beginning to as many countries as I can. Nowadays, I see too many good web applications that can only be used in English-speaking countries. But I know for sure that there is a huge B2B market almost everywhere else and startups donât seem to be interested. If I am to launch the nth recruitment software, I want to reach as many prospects as I could. In order to do so, I am looking for people from everywhere in the world who are willing to translate and promote my software in their own country. I am not looking for affiliates but more for partners. In exchange for their work, I will give them a share of the revenues. As my marketing expenses are capped at 20% of the gross revenue, I am planning to give them that exact share. Itâs up to them to do what they want with it. If they want to put the 20% in their pockets, thatâs fine. If they want to invest part of it in Adwords or the likes, fine too. I understand that the big challenge for me is to find and convince people to work for free without being able to give any proof that they will make any money someday. But the rewards could be also great in the product is a hit in their market. Once a prospect becomes a customer, they will get 20% of the monthly revenue indefinitely! Please let me know what you think of that. Am I just a day-dreamer or do I stand a chance to succeed to convince some people? And if you are yourself in the B2B web application business and you would like to expand your operations to the French-speaking countries, please let me know.
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Answer:
20% of gross revenue does not seem like a viable option for finding a "business partner" to solely expand your service in another country. If most companies spend 33% of their gross margins on operations and another 33% on sales and marketing, then it looks like most people who would agree to help you expand your product would be in a position to take a financial loss. Leonard Kim consults businesses and is the author of http://leonardkim.com/etiquette-social-media/.
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