Planetarion Forums - Sales commission from website? Someone give me a number

Ragnarak · 2 Aug 2003, 00:26

Short version: someone wants me to sell something of his on my website and offered to pay me a % of each sale, i agreed.

I've just finished adding a shop to the site. I've emailed him to let him know etc but i'm not sure what sort of figure i should start from when talking about the commission.

Without me doing this he'd have no customer base, no way to sell his product and so basically no money.

The price of the products will be around the 10-15 pounds mark, he's going to be making at the very least 5-10 pounds profit on these items.

What sort of number should i suggest?

Sarina_Joy · 2 Aug 2003, 00:27

15%

Nodrog · 2 Aug 2003, 01:52

35%, but expect around 15-20%

Zapman · 2 Aug 2003, 01:56

Ask for more.

Ragnarak · 2 Aug 2003, 01:56

ta guys

roadrunner_0 · 2 Aug 2003, 11:22

Quote:

Originally posted by Nodrog
35%, but expect around 15-20%

once again, nod is there with the good advice

pablissimo · 2 Aug 2003, 11:28

10%-15% is the most you'd feasibly get; Amazon's affiliate scheme pays out 15% at the most but that's books only with CD's, games etc paying out at 5%

Gayle29uk · 2 Aug 2003, 18:14

What's his GP?

Ragnarak · 2 Aug 2003, 18:20

Quote:

Originally posted by Gayle29uk
What's his GP?

if i knew what GP meant i'd answer

probably

Gayle29uk · 2 Aug 2003, 18:26

Quote:

Originally posted by Ragnarak
if i knew what GP meant i'd answer

probably

Gross Profit.

Ragnarak · 2 Aug 2003, 18:32

Quote:

Originally posted by Gayle29uk
Gross Profit.

Make the assumption i'm stupid and we'll go from there

I stated above the estimated expected profit per item.
What is it that you are asking? Cos there's no way we could no the total profit because we don't know how many we'll sell...

Gayle29uk · 2 Aug 2003, 18:50

Quote:

Originally posted by Ragnarak
Make the assumption i'm stupid and we'll go from there

I stated above the estimated expected profit per item.
What is it that you are asking? Cos there's no way we could no the total profit because we don't know how many we'll sell...

Bah, I should have read it again more carefully :/

Ok, GP% = ((retail-cost)/cost)*100

From the way you phrased it the cost is about a fiver yes?

So with a retail price of £10-15, call it £12.50 as that's in the middle of the range you gave...

((12.5-5)/5)*100 = 150% (approximately).

With such a high margin I'd be asking for 33% of the GP (which in this case is 20% of the gross or put another way, £2.50 for each one sold).

Assuming tax is not a part of this equation (were you planning to pay income tax on sales/commission?) of course, tax makes it change dramatically

huh · 2 Aug 2003, 19:48

Go for 100%, but if he haggles refuse to go below 95% - you don't wanna get ripped off!

Ragnarak · 2 Aug 2003, 19:51

Quote:

Originally posted by Gayle29uk
(were you planning to pay income tax on sales/commission?)

i wasn't...

thanks a lot for that Gayle, i might have a few more questions once i hear back from him