Profit-Sharing
There are many interesting elements in Progency’s “Profishare” that can help a B2C/d2C business become a “profipoly.”
First, the focus is on customers who are not being engaged by the business. These are the Test and Left customers – dormant or churned. Any revenue generated from these customers is a bonus for the business. As a friend had put it to me a few years ago, this is “gold from gutter.” For the brand, with an outcome-based pricing model, this is akin to “free money” – the costs are incurred by Progency and the brand collects the lion’s share of the revenues generated.
Second, this approach helps the business concentrate on the ABC: acquisition, branding, and campaigns. By outsourcing the reactivation of disengaged customers to Progency, the in-house marketing team can remain focused on their primary objectives without being sidetracked by the high-effort and potentially costly process of re-engaging inactive customers.
Third, unlike traditional adtech models, which often rely on click-based metrics, Progency aligns its compensation with actual conversions. This means that Progency has a vested interest – or “100% skin in the game” – in not just attracting clicks, but in driving real, tangible results in the form of customer re-engagement and sales.
Fourth, Progency’s model can be seen as a form of “co-marketing,” where it collaborates closely with the business’s marketing department. This partnership ensures broader customer outreach without duplicating efforts. Progency relies on the business for content and offers, effectively augmenting the business’s capacity without adding extra costs.
In summary, the Profishare model proposed by Progency represents a novel and potentially transformative pricing model for B2C/D2C business. It transcends traditional methods of charging for software and services, focusing instead on generating revenue from previously untapped customer segments. By re-engaging dormant and churned customers, allowing businesses to focus on their core marketing activities, incentivising based on conversions, and fostering a co-marketing relationship, Profishare offers a comprehensive approach to enhancing profitability and operational efficiency. This model not only aligns the interests of Progency and its customers but also promises a win-win partnership to unlock new revenue streams, paving the way for businesses to become profipolies.
