Affiliate Network
Ignorant cynics may refer to these as "pyramid schemes," while industry veteran types may just say "I know a guy…"
Affiliate networks are groups of individuals/businesses working together to cross-promote and otherwise help each other's sales efforts. For a small fee (or commission). These networks often have interrelated offerings, but that isn't a pre-requisite for inclusion.
Imagine a tight-knit family. Vito owns a heavy equipment company, while Sonny owns a construction concern, Michael runs a demolition business, and Connie has a landfill. One day, Connie's friend, Fredo, decides he wants to knock down a casino and replace it with a Pets.com warehouse, because he's smart (not dumb, like everyone says). Connie would refer Fredo to Michael and Sonny to employ their respective services. They would use Vito's equipment to do the job, and any refuse would be sent to Connie's landfill.
In this affiliate network, each participant receives leads, revenue, and potentially a referral fee for those sales, provided by the others. Everyone wins (except for Fredo, who is never heard from again).
Related or Semi-related Video
Finance: What is a partnership?23 Views
finance a la shmoop. what is a partnership? a marriage. joint ownership
of a bar. when two dudes put up half the dough each to share 50/50 in a time [two different people offer money for keys]
machine. well a partnership is just the merging
of two individuals in doing a given business deal or setting up a business
structure. if both are owners then both are liable for you know bad things
should they happen. partnerships carry a lot of financial danger if one partner
goes off the rails and decides to commit fraud in the name of the company or that
evil partner enters into a stupid company bankrupting contract, well then [bad contract sold to unsuspecting victim]
both parties pay for it. the innocent partner pays just as much in the form of
whatever financial damages befall the partnership as the evil one, and
partnership liabilities include personal assets if the partnership is structured
like a general partnership with limited partners having no personal liability so [ liability structures defined]
for all the good that a partnership can have it can get bad and ugly so you got
to enter partnerships carefully. spend lots of dough on lawyers before you set
it up so you don't have to after. [money exchanged for partnership contract ]
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