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Theory

Case: a training agency asks for exclusivity

A training agency promises more deals if Klasna drops every other partner and fixes one resale price. Score the candidates, price the exclusivity, and counter with terms that are good business and stay legal.

~9 min read · 10 exercises · 250 points

Before you start

Five deals, one condition

The training agency Leo met has sent its terms: five deals a year if Klasna signs no other partners, one fixed price of 800 for every partner, and nobody else may serve companies on its list.

In this case you'll score all five candidates, price each one, and answer the agency within the law.

Ranking five candidates on one sheet

A case starts from the scorecard built earlier in the module: five criteria, each with a direction and a weight fixed before anyone looked at names. Fit with the ideal client 0.3, reach 0.2, trust 0.2 (higher is better), conflict risk 0.2 and onboarding effort 0.1 (lower is better, so use 6 − score).

The HR software vendor scores fit 3, reach 5, trust 3, conflict 2, effort 3. Flip conflict to 4 and effort to 3, then weight: 0.3 × 3 + 0.2 × 5 + 0.2 × 3 + 0.2 × 4 + 0.1 × 3 = 0.9 + 1.0 + 0.6 + 0.8 + 0.3 = 3.6.

Dataset · 5 rows

Five candidate partners

One row per candidate. Scores 1–5; deals and lessons are Klasna's own first-year estimate; setup cost in UAH. A reseller buys at 640 and sets its own resale price; a referral partner earns the tiered commission.

partnermodelicp_fitreachtrustconflict_riskonboarding_effortexpected_deals_per_yearlessons_per_deal_per_yearsetup_cost_uah
hr_consultancyreferral434123150040000
training_agencyreseller543533120060000
logistics_associationreferral5551422400120000
hr_software_vendorreferral35323460050000
business_coachreferral2122114005000
Download CSV

Done for all five, the ranking is: logistics association 4.7, HR consultancy 4.0, HR software vendor 3.6, training agency 3.4, business coach 2.5. The agency's big sales team doesn't save it: it sells its own English to the same buyers, and its conflict score pulls it down.

The scores rank fit and risk. They don't yet say what each partner earns, which is the next step.

  • Do
    HR software: conflict 2 → 4, effort 3 → 3, weighted 3.6.
  • Don't
    HR software: 3 + 5 + 3 + 2 + 3 = 16, second place.

    A raw sum with no flip and no weights.

Net margin of a referral partner

A partner's money is its net margin for Klasna in a year: lessons × what Klasna keeps per lesson − commission − setup cost. For a referral partner Klasna keeps the full 339 UAH a lesson (800 − 430 − 31) and pays commission on the tiers: 10 % up to 1,000,000 UAH of referred revenue, 12 % from 1,000,000 to 3,000,000, 15 % above, each on its own slice.

The HR consultancy: 3 deals × 1,500 lessons = 4,500 lessons. Revenue 4,500 × 800 = 3,600,000. Commission 100,000 + 240,000 + 90,000 = 430,000. Net margin: 4,500 × 339 − 430,000 − 40,000 = 1,525,500 − 470,000 = 1,055,500 UAH.

Two slips to avoid: computing the commission on the 339 instead of the 800 price, and forgetting the setup cost, which is real money Klasna spends before the first deal. These are Klasna's own estimates, so read the result as a range, not a promise.

  • Do
    4,500 × 339 − 430,000 − 40,000 = 1,055,500 UAH
  • Don't
    4,500 × 800 − 430,000 = 3,170,000 UAH

    Revenue is not what Klasna keeps; tutors and tools are paid first.

A bigger partner, a bigger commission tier

The logistics association brings fewer deals than the consultancy but much bigger ones: 2 deals × 2,400 lessons = 4,800 lessons a year. Revenue 4,800 × 800 = 3,840,000 UAH, so it reaches the third tier.

Dataset · 3 rows

Referral commission tiers

Commission on the first-year revenue a partner refers in a year, applied to each slice. Empty to_uah means no upper limit.

tierfrom_uahto_uahcommission_pct
10100000010
21000000300000012
3300000015
Download CSV

Commission: 10 % × 1,000,000 = 100,000; 12 % × 2,000,000 = 240,000; 15 % × 840,000 = 126,000. Total 466,000. Net margin: 4,800 × 339 − 466,000 − 120,000 = 1,627,200 − 586,000 = 1,041,200 UAH.

The association's setup cost of 120,000 is the highest of the five: events and joint materials for its members. It still ends up almost level with the consultancy (1,055,500), and it scores highest on the scorecard, because it carries the trust that logistics buyers act on.

The other two referral candidates follow the same arithmetic: the HR software vendor leaves 553,200 and the business coach 98,600.

  • Do
    Revenue 3,840,000 → commission 100,000 + 240,000 + 126,000 = 466,000.
  • Don't
    Commission 15 % × 3,840,000 = 576,000, since it passed 3,000,000.

    Tiers apply to slices.

A reseller's margin, on your estimate

The agency is a reseller: it buys at 640 and sets its own price, so Klasna's revenue is 640 a lesson and it keeps 640 − 430 − 31 = 179 UAH. There is no commission on top, because the discount is the partner's share.

On Klasna's own estimate of three deals of 1,200 lessons: 3,600 × 179 − 60,000 setup = 584,400 UAH a year. That is roughly half the association's or the consultancy's figure.

Notice which estimate to use. The agency's letter promises five deals; Klasna expected three. A partner's promise is a sales pitch, not data. Price the partner on your own estimate first, then show separately what its promise would be worth if it came true, and say which figure the decision rests on.

Using 339 for a reseller is the most common slip here: it treats the agency as if Klasna sold at full price, and overstates its value by 160 UAH on every lesson.

  • Do
    Agency at our estimate: 3,600 × 179 − 60,000 = 584,400 UAH.
  • Don't
    Agency at its promise: 6,000 × 339 = 2,034,000 UAH.

    Wrong margin and an unproven deal count.

Exclusivity costs what it shuts out

An exclusive offer must be compared with what it closes off, not with the partner's own estimate. If Klasna accepts, it signs no other partners, so the alternative is the whole non-exclusive portfolio.

Exclusive, even on the agency's promise of five deals: 6,000 lessons × 179 − 60,000 = 1,014,000 UAH. Without exclusivity, just the association (1,041,200), the consultancy (1,055,500) and the agency at three deals (584,400) make 2,681,100; all five partners make 3,332,900.

So exclusivity costs more than half of what three partners would bring, and the exclusive figure rests on the agency's own promise. It also gives up the association, the partner logistics buyers trust most, and leaves every overlap between the agency and Teams' own sales as the agency's argument.

Comparing deal counts ("five beats three") is the trap: the question is not how many deals the agency brings, but how much the whole portfolio loses.

  • Do
    Exclusive 1,014,000 vs 2,681,100 from three partners, and the 1,014,000 assumes their five deals.
  • Don't
    Five deals with one partner beat three with each of several.

    Counts deals, ignores what exclusivity closes off.

Legal lines in the agency's letter

Some of the agency's conditions are not just bad business; they cross the guardrails from the previous lesson.

  • One fixed price that every partner must charge is resale price maintenance: a supplier generally may not fix or set a minimum resale price. Klasna may recommend 800; each reseller sets its own.
  • Other partners must refuse companies on the agency's list, even if a company asks bans passive sales. A company that finds a partner on its own must be free to buy.
  • Agreeing with the agency which companies each side sells to, or discussing Klasna's direct prices with it, is an agreement between competitors, because the agency sells its own English courses.

Ordinary commercial terms stay fine: a reseller discount (buying at 640) and a review date. As everywhere in this module, these are guardrails, not legal advice, and a lawyer checks the actual agreement.

  • Do
    We recommend 800 to clients; you set your own resale price.
  • Don't
    All partners charge exactly 800, and nobody serves companies on our list, even if they call.

    Resale price fixing plus a ban on passive sales.

Exclusivity itself: a commercial choice

Not every bad condition is an illegal one, and it helps to keep the two apart. The agency's demand that Klasna sign no other partners is not, in itself, the same kind of problem as a fixed resale price or a ban on passive sales. It is mainly a commercial choice: Klasna may agree to it or refuse it.

In this case the numbers already answer it. Exclusivity would bring 1,014,000 UAH even on the agency's own promise, against 2,681,100 from three partners. It would also give up the association, the most trusted partner for logistics buyers.

Why does the distinction matter? Because the reply sounds different. To a legal line you say "we can't". To a commercial term you say "it doesn't work for us, and here's why", and you can offer an alternative. Exclusivity arrangements can still raise legal questions in some setups, so the lawyer checks the final text either way.

  • Do
    We can't fix partners' prices. Exclusivity we simply don't want: three partners bring more than twice as much.
  • Don't
    Exclusivity is illegal, so we can't even discuss it.

    Mainly a commercial choice; the numbers decide.

Say no to exclusivity, yes to the partner

Declining exclusivity doesn't mean declining the agency. Offer what protects it within the law:

  • Deal registration: every company the agency registers is its own for 90 days, and Teams won't sell around it.
  • Its own resale price: it buys at 640 and charges what it decides; Klasna may recommend 800.
  • A review after six months: if it really brings the five deals it promises, better terms can be discussed then, on evidence.

The agency gets protection for what it actually brings, and Klasna keeps the association and the consultancy. The reply itself should be short and respectful: thank them, say clearly what Klasna can't do and what it won't, then the offer.

How it fits together: the module went from whether to use partners, to scoring them, to terms and legal lines; the case combined all three into one decision. The next module turns to the clients Teams already has: key accounts, renewals and the first sales hire.

  • Do
    Every company you register is yours for 90 days; you set your own price; we review in six months.
  • Don't
    No exclusivity, so no partnership.

    Throws away a partner worth 584,400 a year.

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