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Alternative Proposal · Confidential

The Growth Partnership.
We only get paid when you do.

An alternative to upfront fees: Digital Response contributes the entire brand, website and launch as partnership capital, takes a capped revenue-participation stake in K&K Prestige Removalists, and is paid solely as a commission of revenue actually earned.

Prepared for
K&K Prestige RemovalistsKaitlin & Kevin · Spring Hill, QLD
Prepared by
Digital ResponseiFusion Pty Ltd · ABN 91 071 383 401
Date issued
19 July 2026
Valid until
18 August 202630 days from issue
Reference
DR‑KK‑2026‑02Alternative to DR‑KK‑2026‑01
Upfront cost to K&K
$0.00Commission: 12% of revenue · capped at $31,680
"Practical digital solutions that actually work."
digitalresponse.com.au
Digital ResponseThe idea · DR-KK-2026-02
01 — Why flip the model

Agencies get paid whether the work works or not. We think that's backwards.

The standard proposal asks K&K to pay $21,120 before the first customer books, plus $3,960 a year after launch — real money for a two-person side business whose own plan honestly forecasts losses in Years 1 and 2. Under that model, all of the risk sits with you, and none of it sits with the people who told you the website would work.

The Growth Partnership flips it. Digital Response puts the entire engagement in as partnership capital — every hour of brand, design, development, business planning, hosting and content, at no charge, forever. In exchange, we take a small, non-voting stake and get paid a 12% commission on revenue you actually collect. No bookings, no commission. Slow quarter, small commission. We win only when you win.

The symmetry that makes it fair: our total commission is hard-capped at $31,680 — almost exactly the $33,000 you'd pay us over three years under the standard proposal. Our upside is capped at what we would have charged you anyway. Our downside — the business staying small, or not making it — is ours to carry. Once the cap is reached, commissions stop, the stake dissolves, and everything is yours, permanently.
K&K pays upfront
$0
No deposit, no invoices, no annual fees
DR contributes
$21,120+
96 hrs of build + $3,960/yr ongoing, uncharged
DR's maximum return
$31,680
1.5× build value — then it ends, forever
Why would Digital Response do this?

Three reasons, stated plainly. First, we believe in this niche — the after-hours premium positioning is genuinely underserved in Brisbane, and we've done the strategy work to know it. Second, a capped 1.5× return on deferred fees is a fair price for patient capital. Third, K&K becomes our proof: a case study we build once and point to for years. We're not being generous — we're being aligned. That's the point.

Digital Response · digitalresponse.com.auPage 2 of 8
Digital ResponseStructure · 02
02 — How it works

Capital in, commission out

What Digital Response puts in
  • Everything in the standard proposal, uncharged: brand identity & logo, six design directions, booking prototype, business plan, stationery suite — $11,880 already delivered
  • Phase 2 in full: production build, live booking engine, QA and launch — $9,240
  • Ongoing hosting, support & maintenance and 12 hrs/yr of content development & updates — $3,960/yr value, included for the life of the partnership
  • Additional work beyond scope at the partner rate of $110/hr incl. GST — half the standard rate
What Digital Response receives
  • A 10% non-voting revenue-participation stake — implemented by contract, so K&K's sole-trader/partnership structure doesn't need to change (see Page 8)
  • A commission of 12% of gross revenue actually collected, settled quarterly in arrears
  • A hard lifetime cap of $31,680 (1.5× build value) — commissions stop permanently once reached
  • The right to cite K&K as a public case study

Mechanics — designed to be zero-admin

  • Measurement is automatic. The booking engine we build is the till: every job, quote and payment is already recorded. Quarterly commission is calculated from the same system that runs the business — no spreadsheets, no arguments.
  • Commission is on collected revenue only. Cancelled jobs, no-shows and unpaid invoices never generate commission.
  • Settled quarterly in arrears. K&K is always paid first; Digital Response invoices its 12% after the quarter closes.
  • IP transfers on day one. The brand, website and all source files are assigned to K&K at signing — not held hostage until we're paid. Our protection is the revenue participation, not a lien on your logo.
Worked example: K&K collects $8,000 in a quarter → Digital Response invoices $960. A quarter with $2,000 of jobs → $240. A quarter with zero revenue → zero. Every dollar of commission counts toward the $31,680 lifetime cap, and the running balance appears on every quarterly statement, so both parties always know exactly how much remains.
$0 upfront12% of collected revenueQuarterly in arrearsCapped at $31,680Non-votingIP yours day one
Digital Response · digitalresponse.com.auPage 3 of 8
Digital ResponseThe numbers · 03
03 — The numbers

Three honest scenarios

Built directly on the 3-year business plan we prepared for K&K (DR‑KK‑2026‑01, Stage 04). "Conservative" is that plan exactly as written. "Base" applies the plan's own recommended premium-pricing lever. "Growth" assumes reviews compound and capacity edges up — possible, not promised.

ScenarioYr 1 revenueYr 2 revenueYr 3 revenue3-yr commission (12%)% of DR's cap
Conservative — plan as written$29,800$36,800$45,600$13,46442%
Base — premium pricing lever applied$31,000$42,000$55,000$15,36048%
Growth — reviews compound, capacity up$38,000$60,000$85,000$21,96069%

When is Digital Response made whole?

ScenarioCap reached
GrowthMid Year 4
BaseEarly Year 6
ConservativeLate Yr 6 – Yr 7
Business winds downNever — written off

K&K's 3-year cash out, compared

Model3-yr cash to DR
Standard proposal (fixed)$33,000
Partnership — Conservative$13,464
Partnership — Base$15,360
Partnership — Growth$21,960
Read that left table again — it's the heart of the deal. Under the standard model we're paid in full at launch. Under the partnership, even in the best case we wait until Year 4, in the realistic case Years 6–7, and if the business doesn't make it, we're never paid at all. The 1.5× cap is the price of that patience and that risk — and in every scenario, K&K's first three years cost dramatically less cash than the standard proposal.

The 7-year sunset

If the cap hasn't been reached seven years after launch, the partnership ends anyway: the remaining balance is written off, the stake dissolves, and no further commission is owed. K&K is never left with a perpetual obligation. That's our risk, priced in — not yours.

Digital Response · digitalresponse.com.auPage 4 of 8
Digital ResponseP&L impact · 04
04 — What it does to the business plan

The honest P&L, both ways

A 12% commission is a real cost line on a thin-margin business, and we won't pretend otherwise. Here is the conservative-scenario P&L from the business plan, restated under each model.

Conservative scenarioYear 1Year 2Year 3
Revenue$29,800$36,800$45,600
Wages (Kaitlin + Kevin @ $35/hr)($29,100)($33,600)($38,300)
Opex per business plan($5,120)($5,250)($5,590)
Net result — standard model–$4,420–$2,050+$1,710
DR commission (12%)($3,576)($4,416)($5,472)
Hosting/software costs absorbed by DR+$500+$550+$600
Net result — partnership model–$7,496–$5,916–$3,162
So the partnership makes the P&L worse? On paper, yes — and here's why that's not the whole story. The standard model's P&L only looks better because the $21,120 build cost sits outside it, paid from Kaitlin & Kevin's personal savings before a single job is booked. Include cash actually leaving the household and the picture inverts:
Total cash out of pocket, Years 0–3 (conservative)StandardPartnership
Build & launch fees$21,120$0
Ongoing hosting/support/content fees (3 yrs)$11,880$0
Commission on collected revenue (3 yrs)$0$13,464
Total cash to Digital Response$33,000$13,464

The partnership keeps roughly $19,500 of cash in K&K's pocket across the first three years — the exact years the business plan identifies as loss-making — and defers our payment into the years when the business can actually afford it. The commission also scales down automatically if things go slower than planned, which no fixed invoice ever does.

Which model should K&K choose? If you have $33,000 of comfortable capital and expect to hit the growth case, the standard proposal is mathematically cheaper in the long run. If you'd rather keep cash in the business, share the risk, and pay only from real revenue — the partnership is built for exactly that. Both offers stand side by side; there is no wrong answer, only an honest choice.
Digital Response · digitalresponse.com.auPage 5 of 8
Digital ResponseProtections · 05
05 — Fairness by design

Every escape hatch is yours

K&K's protections

  • Buy us out any time. Buy-back price is always $31,680 minus commissions already paid. Every quarter of trading shrinks the exit price.
  • Early-exit discount. Within the first 18 months, buy-back is priced at 1.3× ($27,456) minus commissions paid — cheaper than letting it run.
  • Hard cap. $31,680 lifetime, then the partnership self-terminates.
  • 7-year sunset. Whatever's unpaid at year 7 is written off in full.
  • Wind-down = zero owed. If the business closes, nothing is due. No debt, no interest, no personal guarantees, ever.
  • Paid first, always. Commission is quarterly in arrears on collected revenue only.
  • IP is yours from signing. Brand, site, code, content — assigned day one.

What Digital Response does not get

  • No vote, no veto, no say in pricing, hiring, hours, or how Kaitlin & Kevin run their business
  • No claim on the van, equipment, or any business or personal asset
  • No interest, late fees, or escalation — the cap never grows
  • No exclusivity over K&K's future suppliers — you can hire any other agency any time (participation continues, service obligation ends)
  • No share of anything after the cap — 100% of the upside beyond $31,680 is K&K's forever

Digital Response's protections

  • Participation attaches to the business's revenue, not to our ongoing involvement — replacing us as a supplier doesn't cancel the stake
  • If the business is sold, DR receives the lesser of 10% of sale proceeds or the remaining cap balance
  • Quarterly revenue statement auto-generated from the booking system
The one behaviour the agreement guards against: taking the rebuilt brand and bookings off-system to avoid commission. Revenue participation applies to all removalist revenue of the business while the agreement is active, however booked. Everything else — how you run, price, grow, staff and schedule — is entirely yours.
Digital Response · digitalresponse.com.auPage 6 of 8
Digital ResponseComparison · 06
06 — Side by side

Standard proposal vs. Growth Partnership

Standard (DR-KK-2026-01)Growth Partnership (this document)
Upfront cost$10,560 deposit + $10,560 at launch$0
Ongoing annual fees$3,960/yr in advance$0 — included for the life of the partnership
DR is paidOn delivery, regardless of results12% of collected revenue, quarterly, only if you earn
Total cost to K&K$33,000 over 3 yrs, then $3,960/yr continuingCapped at $31,680, lifetime, all-inclusive
Risk carrierK&KShared — weighted toward DR
Ownership100% K&K90% K&K + 10% non-voting DR stake, extinguished at cap, buy-back any time
Extra work rate$220/hr incl. GST$110/hr incl. GST partner rate
DR's incentiveDeliver the scopeGrow your revenue — our invoice depends on it
If the business strugglesFees already paidCommission shrinks with revenue; wind-down owes nothing
If the business boomsCheapest in hindsightDR reaches cap sooner, then exits entirely
EndsOngoing fees continue while services doAt cap, at buy-back, or at the 7-year sunset — whichever first
Our recommendation, honestly given: for a business whose own plan forecasts two loss-making years, we believe the partnership is the braver and better-aligned structure — it prices our confidence in our own work, and it means the people who designed the growth engine share the consequences if it stalls. But the standard proposal remains open, and we'll be equally proud to build K&K either way.
Digital Response · digitalresponse.com.auPage 7 of 8
Digital ResponseTerms & acceptance · 07
07 — Terms, structure & acceptance

Terms

  • All amounts are AUD. Commission invoices from Digital Response are GST-inclusive amounts; the scenario figures on Pages 4–5 are the totals payable.
  • Commission: 12% of gross revenue collected by the business, calculated and invoiced quarterly in arrears, counting toward a lifetime cap of $31,680.
  • The 10% stake is implemented as a contractual revenue-participation agreement — no change to K&K's sole-trader/partnership structure is required. If K&K later incorporates, Digital Response holds a conversion right to a 10% non-voting shareholding on equivalent capped terms.
  • Buy-back: at any time, for $31,680 minus commissions paid ($27,456 basis within the first 18 months). Sale of business: lesser of 10% of proceeds or the remaining cap balance. Wind-down: nothing owed. Sunset: 7 years from launch, balance written off.
  • All Stage 1–4 deliverables and Phase 2 launch scope (per DR-KK-2026-01) are included, plus ongoing hosting, support, maintenance and 12 hrs/yr content for the life of the partnership. Additional work at the partner rate of $110/hr incl. GST.
  • All intellectual property in the brand and website is assigned to K&K Prestige Removalists on signing.
  • Digital Response may reference K&K as a case study; commercially sensitive figures only with written consent.
  • This offer and DR-KK-2026-01 are alternatives — accepting one lapses the other. Both are valid to 18 August 2026.
Independent advice, genuinely required: this is a revenue-sharing investment arrangement, not a standard supplier contract. Before signing, K&K should take independent legal and accounting advice — including on how commission interacts with the ATO non-commercial-loss rules discussed in the business plan. This document is a commercial proposal, not financial or legal advice, and the definitive agreement will be drafted for review by K&K's advisers at Digital Response's cost.

Acceptance

Acceptance below (or written confirmation) instructs Digital Response to prepare the definitive Growth Partnership agreement for K&K's advisers, and to commence Phase 2 — Website Development & Launch — immediately, at no charge.

Client — K&K Prestige Removalists
Name: _______________________ Date: __________
Digital Response
Name: _______________________ Date: __________

Digital Response — iFusion Pty Ltd, ABN 91 071 383 401 · 477 Boundary Street, Spring Hill QLD 4000 · info@digitalresponse.com.au · digitalresponse.com.au

Digital Response · digitalresponse.com.auPage 8 of 8