Introduction: Building a Fair and Sustainable Partnership Model
At Dancing Dragons, we believe that great business relationships are built on transparency, fairness, and mutual benefit. When someone brings a corporate coaching deal to our door—whether they're an existing coach, a business development partner, or a well-connected professional in our network—they deserve to be rewarded for creating that opportunity. At the same time, our coaches who deliver the actual coaching hours deserve the lion's share of the revenue for their expertise and effort.
This Standard Operating Procedure (SOP) outlines our corporate deal referral commission structure, designed to incentivize deal-making while ensuring fair compensation across all parties involved. The model is simple: the referrer earns 3-5% of the deal value, the company retains 15-20% for platform operations and support, and the coaches performing the work receive the remaining 75-82%.
Understanding the Revenue Split Structure
The Three-Party Model
Every corporate coaching deal at Dancing Dragons involves three distinct parties, each contributing value to the engagement:
The Referrer (3-5% of deal value): The individual or entity who identifies the opportunity, makes the introduction, and helps close the deal with the corporate client.
The Company/Platform (15-20% of deal value): Dancing Dragons provides the platform infrastructure, coach matching, quality assurance, legal/contractual framework, payment processing, and ongoing client relationship management.
The Coaches (75-82% of deal value): The coaching professionals who deliver the actual coaching sessions, assessments, workshops, and follow-up support to the corporate client's employees.
Why These Percentages?
The commission structure is designed to achieve several strategic objectives:
Attract quality referrals: A 3-5% commission is meaningful enough to motivate referrers to actively seek corporate opportunities, while not being so high that it inflates pricing for clients.
Sustain platform operations: The 15-20% company portion covers technology infrastructure, customer support, coach vetting and matching, payment processing fees, legal compliance, insurance, and business development activities.
Prioritize coach compensation: By allocating 75-82% to coaches, we ensure that the professionals doing the actual work receive the majority of the revenue—a fundamental principle of our coaching marketplace philosophy.
Referrer Commission: 3-5% Tier Structure
Base Referral Rate: 3%
All qualified referrals start at a 3% commission rate. This applies when:
The referrer makes an introduction to a decision-maker at a corporate client
The referrer provides basic context about the client's coaching needs
The Dancing Dragons team handles the majority of the sales process
Enhanced Referral Rate: 4%
The commission increases to 4% when the referrer provides additional value:
The referrer has an existing business relationship with the client
The referrer actively participates in needs assessment meetings
The referrer provides insights about the client's internal dynamics or budget constraints
The referrer helps overcome objections during the sales process
Premium Referral Rate: 5%
The maximum 5% commission applies when:
The referrer brings a deal that is substantially closed or ready to close
The referrer has negotiated key terms with the client before the introduction
The referrer commits to ongoing relationship management with the client
The deal value exceeds $50,000 and requires minimal sales effort from the company
Commission Calculation Examples
To illustrate how the referral commission works in practice:
Example 1: Small Corporate Engagement
Deal value: $20,000 (executive coaching for 5 managers)
Referral tier: Base (3%)
Referrer commission: $600
Company portion (15%): $3,000
Coach pool (82%): $16,400
Example 2: Mid-Size Corporate Program
Deal value: $75,000 (leadership development program for 20 executives)
Referral tier: Enhanced (4%)
Referrer commission: $3,000
Company portion (16%): $12,000
Coach pool (80%): $60,000
Example 3: Large Enterprise Deal
Deal value: $150,000 (comprehensive coaching program for 50+ employees)
Referral tier: Premium (5%)
Referrer commission: $7,500
Company portion (20%): $30,000
Coach pool (75%): $112,500
Company Portion: 15-20% Allocation
What the Company Percentage Covers
The company's 15-20% of the deal value funds essential infrastructure and services:
Technology and platform: Hosting, development, security, and maintenance of the coaching platform, scheduling systems, and communication tools.
Coach matching and vetting: Identifying, interviewing, and matching appropriate coaches to the corporate client's specific needs.
Sales and business development: Proposal development, contract negotiation, and client communication throughout the sales cycle.
Legal and compliance: Contract drafting, liability insurance, data protection compliance, and regulatory adherence.
Payment processing: Transaction fees, invoicing, collections, and financial administration.
Quality assurance: Ongoing monitoring of coaching engagements, feedback collection, and performance reviews.
Client relationship management: Account management, issue resolution, and relationship maintenance throughout the engagement.
Sliding Scale Based on Deal Size
The company percentage adjusts based on deal size to reflect economies of scale:
Deals under $25,000: Company retains 20% (higher relative overhead per dollar)
Deals 25,000−75,000: Company retains 17-18% (moderate overhead)
Deals over $75,000: Company retains 15-16% (lower relative overhead, higher volume)
Coach Pool: 75-82% Distribution
The Core Principle
Coaches who deliver the coaching hours receive the largest share of the revenue because they provide the core value of the engagement. Our philosophy is simple: the people doing the work should earn the majority of the compensation.
Distribution Within the Coach Pool
When multiple coaches participate in a corporate engagement, the coach pool is distributed based on:
Hours delivered: Each coach receives compensation proportional to the number of coaching hours they provide.
Specialty premiums: Coaches with specialized certifications or expertise in areas like executive coaching, team dynamics, or organizational transformation may command higher hourly rates within the pool.
Leadership roles: If a coach serves as the lead coach for the engagement—coordinating with other coaches, providing oversight, and serving as the primary client contact—they receive an additional allocation (typically 5-10% of the coach pool).
Example: Multi-Coach Engagement
Consider a $100,000 corporate coaching engagement with the following structure:
Referrer (4%): $4,000
Company (16%): $16,000
Coach pool (80%): $80,000
If the coach pool is distributed among three coaches:
Lead Coach: Delivers 40% of hours + 10% leadership premium = 50% of pool = $40,000
Coach B: Delivers 35% of hours = $28,000
Coach C: Delivers 25% of hours = $12,000
Eligibility Requirements for Referrers
Who Can Earn Referral Commissions
Referral commissions are available to:
Existing coaches on the platform: Coaches who bring corporate opportunities beyond their own client work
Business development partners: Individuals or organizations with formal referral agreements
Professional network members: Consultants, HR professionals, or executives who make introductions
Corporate clients: Existing clients who refer other companies (client-to-client referrals)
Referral Agreement Requirements
Before earning commissions, referrers must:
Sign a referral agreement: A simple contract outlining commission terms, payment timing, and confidentiality requirements.
Provide complete introduction: Include key contact information, context about the client's needs, and any relevant background on the opportunity.
Disclose any conflicts of interest: If the referrer has a business relationship with the potential client that could influence the engagement, this must be disclosed.
Agree to non-interference: Once the referral is made, the company leads the sales process and client relationship (unless otherwise agreed for enhanced/premium tier referrals).
Payment Terms and Timing
Referrer Commission Payments
Payment trigger: Referrer commissions are paid when the company receives payment from the corporate client.
Payment schedule: For multi-payment engagements (e.g., monthly billing), the referrer receives their proportional commission with each payment received.
Payment method: Referrers receive payments via direct deposit, check, or platform credits (for coaches who prefer to apply commissions toward platform fees).
Example Payment Timeline
For a $60,000 engagement billed in three monthly installments:
Month
Client Payment
Referrer Commission (4%)
1
$20,000
$800
2
$20,000
$800
3
$20,000
$800
Total
$60,000
$2,400
Coach Payment Schedule
Coaches are paid according to the standard platform payment schedule:
Bi-weekly payments: Coaches receive payments every two weeks for completed coaching hours.
Invoice reconciliation: Corporate engagement hours are reconciled against the master agreement to ensure accurate compensation.
Expense reimbursement: Any pre-approved expenses (travel, materials, assessments) are reimbursed separately from coaching compensation.
Deal Qualification Process
What Constitutes a Qualified Referral
For a referral to qualify for commission, it must meet the following criteria:
New client: The corporate client has not previously engaged with Dancing Dragons or is not currently in the sales pipeline.
Genuine introduction: The referrer provided a meaningful introduction—not just a company name, but an actual connection to a decision-maker.
Coaching scope: The opportunity involves coaching services that Dancing Dragons can deliver (executive coaching, leadership development, team coaching, etc.).
Minimum deal size: The engagement must have a minimum value of $5,000 to qualify for referral commissions.
Referral Attribution Timeline
90-day attribution window: If a deal closes within 90 days of the referral introduction, the referrer receives the full commission.
Extended attribution: For complex enterprise deals with longer sales cycles, the attribution window may be extended to 180 days with mutual agreement.
First referrer wins: If multiple referrers introduce the same client, the first documented referral receives the commission.
Special Scenarios and Edge Cases
Repeat Business from Referred Clients
When a referred corporate client returns for additional engagements:
First repeat engagement: Referrer receives 50% of their original commission rate (e.g., 2% instead of 4%)
Second repeat engagement: Referrer receives 25% of their original commission rate
Third and beyond: No additional referral commission (client is considered a house account)
Coach-Referrer Dual Role
When a coach both refers a deal AND provides coaching services:
The coach earns both the referral commission AND their share of the coach pool
These are tracked and paid separately to maintain transparency
Example: Coach refers a 50,000deal(42,000 referral) and provides 50% of coaching hours (20,000fromcoachpool)=22,000 total
Multi-Referrer Situations
When two or more referrers contribute to a single deal:
Referrers may agree to split the commission based on their respective contributions
The company facilitates this agreement but does not mediate disputes
If no agreement is reached, the first documented referrer receives the full commission
Deal Modifications
If the deal scope changes after closing:
Scope increase: Referrer receives commission on the additional value
Scope decrease: Referrer commission is adjusted proportionally based on actual revenue received
Deal cancellation: If a deal is cancelled before coaching begins, no referral commission is paid
Transparency and Reporting
Referrer Dashboard Access
Referrers with active agreements have access to a dashboard showing:
All referred clients and their status (prospect, negotiating, closed, active)
Commission earned to date and pending commissions
Payment history and upcoming payments
Deal value and commission rate for each referral
Coach Visibility
Coaches participating in corporate engagements can see:
Total coach pool value for their engagements
Their individual allocation within the pool
Hours logged and compensation earned
Upcoming coaching sessions and associated compensation
Client Transparency
Corporate clients are not shown the internal revenue split, but they do receive:
Clear pricing based on coaching hours and program scope
Itemized invoices for services delivered
Value reports demonstrating ROI on their coaching investment
Why This Model Benefits Everyone
Benefits for Referrers
Passive income opportunity: Earn commissions for introductions without ongoing work
Meaningful compensation: 3-5% of corporate deals translates to substantial earnings for valuable referrals
Repeat engagement bonuses: Even at reduced rates, repeat business generates ongoing income
Transparent tracking: Dashboard access ensures referrers always know the status of their referrals
Benefits for Coaches
Majority share of revenue: 75-82% allocation ensures coaches are fairly compensated for their expertise
Access to corporate clients: Platform brings corporate opportunities that individual coaches might not access on their own
Reduced administrative burden: Company handles contracts, billing, and client management
Leadership opportunities: Lead coach roles provide additional compensation and professional development
Express interest: Contact the Dancing Dragons partnerships team
Review terms: Receive and review the referral agreement
Sign agreement: Execute the referral agreement electronically
Access dashboard: Receive login credentials for the referrer dashboard
Make introductions: Begin identifying and referring corporate opportunities
For Coaches on Corporate Engagements
Receive invitation: Platform notifies coaches of corporate engagement opportunities
Review scope: Understand the engagement requirements, timeline, and compensation
Accept participation: Confirm participation and availability
Deliver coaching: Provide coaching services according to the engagement plan
Receive compensation: Earn compensation through regular payment cycles
Conclusion: A Model Built on Fairness
At Dancing Dragons, we believe that sustainable business models are built on fairness and transparency. Our corporate deal referral commission structure—with 3-5% for referrers, 15-20% for the company, and 75-82% for coaches—reflects our commitment to rewarding everyone who contributes to successful coaching engagements.
Referrers are incentivized to bring quality opportunities to our door. Coaches are compensated fairly for their expertise and effort. The company maintains sustainable operations to support both. And corporate clients receive high-quality coaching services at competitive prices.
This SOP provides the framework for how we structure and manage corporate coaching deals. By following these guidelines, we ensure that every corporate engagement is a win for everyone involved—creating value for clients, opportunity for coaches, meaningful income for referrers, and sustainable growth for the platform.
If you're interested in becoming a referral partner or have questions about how this model applies to a specific opportunity, contact our partnerships team. We're always looking for great people who share our commitment to expanding access to high-quality coaching.
