What is a fair commission rate for web design/marketing for a product sales site?
Posted by admin | 30/11/10 | Tagged Other - Advertising & Marketing
i have a product that is very promising and my web designer offered to do a website to sell it online. he offered to do it very cheap in exchange for a commission on sales from the site. seemed fair given the right rate. but he wants 15 percent and not that i know a lot about these things but that seems really high to me. if anyone could give me ANY guidence at all i’d really appreciate it!
thanks!!
Right now, pre-launch…15% seems like a lot – but its worth it to you, if this product gets the exposure you desire, along with the sales income. You can put a cap on it by setting up a royalty agreement form stating that the commission is only effective for the first 100 unit sales (figure a dollar limit on your web designers creative efforts) You can also drop the commission to 10% for the next 100 units or whatever your conscious allows. It works like this – 100 units sell for 30.00 each and 15% is 4.50 dollars – x 100 equals 450.00 – and the next group equals less commission till you get to 1000 or more units.
Now you are not married to this web designer forever, and the cow doesn’t die. All good things must come to an end, and include an exit clause.
Way too mych have you heard of os commerace?