Coproduction: how to create products in partnership with other people

Coproduction: how to create products in partnership with other people

Learn everything about Hotmart's coproduction tool.

Many people want to work online today. After all, this kind of work would enable you to have more flexibility when it comes to working hours and places, besides advantages such as having more time with friends and family and also become more specialized in what you do.

When we look for opportunities on the internet, we usually come across well-known roles like Producer, Affiliate, e-commerce owner, designer, programmer, content creator, and freelancer. But these may not be exactly what you were looking for.

The truth of the matter is that there are many people with particular knowledge about a topic, but still, they don’t know what to do with it. If you are one of these people, know that it is possible to use your expertise and work in a coproduction with other Producers.

To understand a little bit more about this topic, keep on reading until the end. Today, we are going to talk about this role that has become an incredible ally to many Producers on our platform.

Learn all about coproduction!

What is coproduction?

Coproduction is a system that enables you to create a digital product with someone else. Basically, this is the easiest way for you to have a partner in your business for a pre-determined period of time, or even indefinitely. It all depends on what you set as your coproduction timeframe.

Let’s take a look at some examples to make this clear.

Imagine you have a digital product, but your expertise is “merely” the knowledge about that topic. In other words, you don’t know how to sell or how to use marketing strategies.

With coproduction, you can get someone involved, someone who is a specialist in marketing and sales, to do this for you. In turn, they would get a cut from what you make selling the product.

Or maybe you are a specialist in a certain market, but you’re not an authority to talk about a particular subject, such as architecture, for instance. You can then find someone who is an expert in this topic and launch this person in the market, paying them royalties.

The greatest advantage of the coproduction is that it makes it easy to share receivables. This means you won’t have to spend more time on making transfers to coproducers, since the distribution flow of commissions is automated, as the sales are made.

Who are these Coproducers?

A coproduction takes place when two or more people create a product together. There are two scenarios in which this feature stands out, they are:

  1. When a group of specialists in a particular niche gathers to create a special product, top of the market;
  2. When a specialist gets together with a marketing professional, or even an agency, to create and launch a new product in the market.

This resource opens doors in the market, not only because it is a catalyst to partnerships, but also because it enables the development of a new career: editor of digital products.

The editor of digital products is someone who doesn’t have a particular knowledge of a product’s niche (e.g. health, relationships) but has the necessary skill set to create a digital product and put it in the market.

To do this job, instead of charging for the service provider, the editor charges per results achieved and thus becomes a coproducer to the original Product through the platform.

An editor of digital products may prove to be the missing spark that the Producer needs to take the earnings of their product to the next level.

How does Hotmart’s coproduction tool work?

You, as a Producer, can access the settings on your Hotmart account to add coproducer to your business.

To do so, you just need to go the menu Coproductions on the left-hand side of the screen, after clicking on Products.

On this screen, you will then be able to invite other users to become coproducers by clicking on Add, on the top right-hand corner.

coproduction-hotmart-1

Then, you have to inform:

  • The name of the product;
  • The coproducer’s Hotmart email (he or she must also have a Hotmart Account);
  • The timeframe for the contract (which may be a pre-determined period of time, or unlimited);
  • The mode in which the Coproducer will get the commissions (All sales, Affiliate sales only, or Only sales directly from Producer)
  • The percentage of commissions to the Coproducer.

Take a look:

coproduction-hotmart-2

When the invitation is made, Hotmart will send an email with a link for the user to accept your coproduction offer. Once the invitation is accepted, the coproduction contract is valid.

The user that registers the product is called the Main Producer.

To terminate the partnership, the Producer must access the menus mentioned above and then click on Actions > Cancel contract.

This way, an email message will be sent to the other party so that they agree with the cancellation.

It’s important to highlight that the confirmation must be made with the link sent in the message.

Main rules for coproducers

1) The number of coproducers is unlimited. However, the main Producer must retain at least 30% of the income. In other words, the main Producer may share up to 70% of the income with as many coproducers as he or she sees fit.

2) Regardless of the number of coproducers, the main Producer is responsible for the product in the various spheres: fiscal, tax, and legal, and that’s why the Producer should always have a larger share of the commission.

3) Only the main Producer can make changes to the product’s settings. The coproducers have access to the product’s sales history, but cannot make any changes to the characteristics of the product.

4) As the main Producer, you may add other people as coproducers to one or more products, and to every product, you may also set a different commission.

5) The main Producer is the one who decides if the coproducers can also sell a product as Affiliates, or not. If you allow this, besides the commission for the coproduction, the coproducer will also earn for sales made as an Affiliate.

6) The Affiliate Manager may also become a coproducer who attracts Affiliates to your product, and will get commissions on the sales from the Affiliates he or she brings in.

Conclusion

We believe the coproduction tool is a very innovative one that can transform the market and the way partnerships are made.

If you have been thinking about working online, but still don’t know where to start, this may prove to be a practical manner to start as a business partner to other specialists in their niches.

If you are a Producer, you probably noticed that coproduction is an excellent option if you don’t want, or are unable, to spend time in everyday tasks such as marketing, since your focus is the creation of products.

No matter what your profile is, the coproduction tool is yet another feature to help you grow your online business.

Did you know that, besides being a coproducer, you can also start working in the Digital Market without being a Producer or Affiliate? Read our post on Affiliate Manager and learn all about it.

 

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