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What percent of royalties to you pay to Authorized Training Partners?

Beverly van de Velde
Beverly van de Velde Member | Enthusiast ✭

I've inherited a program that gives away 80-90% of training revenue to Authorized Training Partners (ATPs) -- even though we provide the eCommerce, registration, course materials, and lab environment. (I know, that's crazy!) I'm considering a tiered model for ATPs, but in general, what percent of revenue do you pay ATPs? On a related note, what strategy/metrics do you require of your ATPs?

Best Answer

  • Dirk Braune
    Dirk Braune Member
    Answer ✓

    I use as rule of thumb: 25% who sells, 25% who provides contents, 25% for labs and 25% for instructor/delivery. That would leave the partner only with 50% in your case (sales&delivery). You can also verify the fee by comparing what you would pay a contractor for delivery as this seems to be the service your ATP provides.

    The models are surveyed in different industry practices like CEdMA, but I haven´t seen the percentage fees


  • Alexander Ziegler
    Alexander Ziegler Founding Member | Expert ✭✭✭

    There are industry averages in the work with Partners. The usual approach is to use those industry averages, and determine the right percentage based on the work they do. For example, if you provide the content and the ATP does everything else, then +-10% of the revenue should be yours. TSIA has a lot of data around this. @MariaManning-Chapman should be able to point you to the right data from her research. Maria should be also available to speak about typical metrics. We added besides the typical data also NPS and the Client Names. Both are giving us lots of insights besides normal statistics.

  • Beverly van de Velde
    Beverly van de Velde Member | Enthusiast ✭

    Thanks, Alexander. As of today, we are providing the registration system/eCommerce, content, and lab infrastructure. Maria and I did talk about ATPs, which I'll summarize below for other people's awareness. Still, I'm curious to know what the industry best practice percentage is for paying ATPs if the company provides everything and the ATP just provides the classroom and instructor. I'm also curious to know what metrics the ATPs are held to for earning the royalties.

    *Option 1 - Create a revenue share model - We help them with registrations and the ATP links to the registration system (we collect all the revenue and we pay the ATP monthly royalties; Tier based on level of provisioning -- e.g., we pay less % to ATP if we provide the registration system, labs, etc.)

    *Option 2 - Kit model (price per day the ATP pays us and we provide the instructor manual, lab exercises, but the ATP provides their own labs and registrations)

    *Option 3 - Combined model of the above

    *Option 4 - If we do everything, then it makes more sense to have a subcontractor model using ATPs. (But, it's not a subcontractor model if the ATP provides the classroom facility.)

    *Option 5 - Combined model with ATP for ILT/classroom facility and subcontract for V-ILT.

  • Beverly van de Velde
    Beverly van de Velde Member | Enthusiast ✭

    Thanks, @Dirk Braune. Happy Holidays!