Navigating the Risks and Rewards of Revenue Growth Services: A Conversation with Reditus Group 

Put Your Money Where Your Mouth Is..

For B2B tech startups anxious for revenue growth, the search for reliable revenue generation services can be fraught with skepticism and high expectations. A recent LinkedIn conversation between me, and a potential client, (let’s call him Simon) sheds light on the complexities of this search and the hesitance many businesses feel when considering partnerships based on commission or performance only.

The Skepticism Around Performance-Based Services

Simon’s initial message to us voiced a concern: many revenue generation services promise results but hesitate to operate solely on the basis of their success. This skepticism stems from countless experiences businesses have had where the outcome didn’t justify the investment. Simon argued that the lack of companies willing to work exclusively on a success basis suggests they might be better at selling their services than delivering tangible results. I wondered if that’s how he sold his service.

Reditus Group’s Approach to Revenue Growth

In response to Simon, I clarified the fundamental principles and operational philosophy of Reditus Group. Here’s a breakdown of the key points:

1. Holistic Revenue Generation:

Unlike typical lead generation services that focus narrowly on quantity over quality, Reditus operates as a fractional revenue team, providing complete revenue generation services. This means we integrate deeply with client organizations, encompassing marketing, lead generation, sales, and customer success, to foster genuine growth across all fronts.

2. The Complexity of Revenue Generation

Successful B2B revenue generation is akin to solving a complex puzzle that requires harmonious integration of product-market fit, strategic marketing, effective lead generation, adept sales execution, and extensive customer success work. Since these elements are interdependent, our approach is comprehensive and can’t be easily compartmentalized into commission-based work, especially when considering the unpredictability of market fit and the non-commissionable nature of necessary marketing activities.

3. Engagement Flexibility

Understanding the unique needs and constraints of each client, we propose a flexible engagement model, leveraging up to three categories of compensation: retainer, commission and equity. This allows us to create the best relationship for the specific situation. Additionally, our “Phase 0” approach involves a four-week period during which both parties can evaluate the partnership before making significant commitments. This phase ensures alignment and mutual understanding, crucial for long-term success.

During this discussion, I pointed Simon to a couple of posts in our blog that provide deeper explanations on the topic:

The Importance of Commitment in Partnership

The final point I emphasized to Simon concerns the commitment or “skin in the game” from both parties. For a partnership to be fruitful, it’s vital for all parties to be invested. If a client perceives that they aren’t financially committed, they might prioritize other areas, potentially undermining the efforts of the revenue team several months into a sales process. Moreover, the typical sales cycle in B2B contexts can span many months, requiring sustained investment and effort from everyone to achieve success.

I hate to point this out, but many a sales rep has not been able to collect previously agreed-to commissions. When it’s a large, single check, CEO’s get sticker shock, and find ways not to pay them. If you’re holding compensation for ten months or so—it should be a large check. What guarantee do we have that you won’t change your mind on commissions several months into an engagement?

Conclusion: A Shared Journey Towards Growth

Simon is not unique in offering this challenge—we hear it from time to time. This dialogue with Simon represents a microcosm of the broader challenges and opportunities in the revenue generation services industry. At Reditus, we believe in transparent communication, shared commitment, and the power of a holistic approach to revenue generation. For businesses looking beyond the allure of commission-only models, our methodology offers a balanced, integrated, and committed partnership towards achieving sustainable growth.

To anyone navigating these decisions, remember that true partnership in business growth is a two-way street requiring commitment, trust, and a shared vision of success. Few companies wait to charge their customers until they achieve their desired objectives from the product/service—why should we be any different? If you’re ready to explore how Reditus can help transform your business growth trajectory, we invite you to start a conversation with us. Let’s build something great together.

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