Once you’ve found the right course producer, the next step is closing a deal that benefits both parties. A successful partnership requires clear communication, well-defined expectations, and a solid agreement.
In this guide, I’ll walk you through each step of the negotiation process to ensure a smooth and profitable co-production partnership.
Step 1: Define Clear Roles and Responsibilities
Before discussing revenue-sharing and contract terms, you need to clearly define each person’s role in the partnership.
Typical Responsibilities of a Producer (Course Creator)
✅ Develop the course content (video lessons, PDFs, quizzes)
✅ Appear in promotional materials (if necessary)
✅ Provide authority and credibility in the niche
✅ Engage with students (optional)
Typical Responsibilities of a Co-Producer (Marketer)
✅ Build the sales funnel (landing pages, checkout pages)
✅ Create and manage paid ads (Facebook, Google, YouTube)
✅ Handle customer support and student management
✅ Optimize pricing and revenue strategies
✅ Track performance and adjust marketing tactics
💡 Tip: Some producers want to stay involved in marketing decisions, while others prefer to focus only on content. Make sure you discuss how involved they want to be in the sales process.
Step 2: Decide on the Revenue-Sharing Model
One of the most important steps in the deal is defining how profits will be split. The most common revenue-sharing models are:
1️⃣ 50/50 Split (Equal Partnership)
✅ Best when both parties invest time and money equally
✅ Works well when both the producer and co-producer have strong skills
📌 Example:
- The producer creates high-quality content but doesn’t have marketing expertise.
- The co-producer handles the entire marketing and sales process.
2️⃣ 60/40 or 70/30 Split (Producer Gets More)
✅ Best when the producer is a well-known expert with a strong personal brand
✅ Works well if the producer has an existing audience and marketing is easier
📌 Example:
- The producer is an influencer or authority figure with a big following.
- The co-producer helps optimize sales but benefits from the producer’s audience.
3️⃣ 40/60 or 30/70 Split (Co-Producer Gets More)
✅ Best when the co-producer is handling all business costs (ads, tools, support)
✅ Works well if the producer is new and the co-producer is taking more risks
📌 Example:
- The producer is a small expert with little reach, and the co-producer invests in ads and sales efforts.
- The co-producer carries most of the financial risk, so they receive a larger share.
💡 Tip: Always negotiate a fair split based on who is doing the most work and taking on the biggest financial risk.
Step 3: Discuss Upfront Costs and Budgeting
Who Pays for Marketing Costs?
One of the biggest costs in course co-production is paid advertising. There are three ways to handle this:
✅ Option 1: Split Ad Costs – Both partners invest money into ads equally.
✅ Option 2: Co-Producer Pays for Ads – The co-producer takes the risk but gets a larger revenue share.
✅ Option 3: Producer Invests in Ads – The producer funds marketing while the co-producer manages campaigns.
💡 Tip: If the producer doesn’t want to pay for ads, negotiate a higher percentage for yourself since you’re taking on the financial risk.
Step 4: Choose the Course Pricing Strategy
The price of a course directly impacts sales volume and profit margins. Here are the most common pricing models:
1️⃣ Low-Ticket ($10 – $97)
✅ High-volume sales
✅ Easier to sell, especially to cold audiences
❌ Requires a large audience to be profitable
📌 Best for: Beginners or courses listed on Udemy, Hotmart, and marketplaces.
2️⃣ Mid-Ticket ($97 – $497)
✅ Balanced between affordability and profitability
✅ Works well with strong sales funnels
✅ Can be sold via ads or organic traffic
📌 Best for: Standalone courses with detailed content and strong sales pages.
3️⃣ High-Ticket ($497 – $2,000+)
✅ Requires fewer sales to be profitable
✅ Works well with webinars, live training, and coaching
✅ Can be bundled with coaching sessions
📌 Best for: Premium courses or authority figures selling exclusive content.
💡 Tip: If the producer insists on selling at a low price, suggest adding bonuses, live coaching, or upsells to increase overall revenue.
Step 5: Write a Contract to Protect Both Partners
Once you agree on roles, revenue-sharing, costs, and pricing, it’s time to write a formal contract. A contract helps prevent misunderstandings and protects both parties legally.
What Should Be Included in the Contract?
✔️ Revenue Split – Clearly state how profits will be divided
✔️ Responsibilities – Define who handles content, marketing, and support
✔️ Payment Schedule – When and how earnings will be distributed
✔️ Marketing Budget – Who pays for ads and marketing expenses
✔️ Course Ownership Rights – Who owns the course materials and branding
✔️ Duration of the Agreement – How long the partnership will last
✔️ Termination Clause – What happens if one party wants to leave
💡 Tip: If you’re unsure how to draft a contract, use freelance contract templates or consult a lawyer.
Step 6: Launch and Scale the Course Together
Once the deal is finalized, it’s time to launch and grow the course! Here’s how to maximize success:
Pre-Launch Strategy
🚀 Build an email list with a free lead magnet
🚀 Run a webinar or live Q&A to generate excitement
🚀 Use organic content (YouTube, blog, Instagram) to create awareness
Launch Strategy
🔥 Open the course for a limited-time offer to create urgency
🔥 Run paid ads to bring in new leads
🔥 Use email sequences and retargeting ads to maximize conversions
Post-Launch Strategy
📈 Optimize the funnel based on sales data
📈 Offer upsells and coaching for extra revenue
📈 Plan for recurring launches or a perpetual sales model
💡 Tip: Always track conversion rates, ad ROI, and student engagement to improve results.
Final Thoughts – How to Close a Profitable Deal Successfully
A strong co-production deal can lead to long-term revenue and multiple course launches. Here’s a recap of the key steps:
✅ Define clear roles so both partners know their responsibilities
✅ Agree on a fair revenue-sharing model based on investment and effort
✅ Discuss upfront costs and who will cover marketing expenses
✅ Choose the best pricing strategy to maximize profits
✅ Sign a contract to protect both parties
✅ Launch, optimize, and scale the course for long-term success
By following this guide, you’ll be able to secure profitable course co-production deals and build a successful business in the digital education industry. 🚀