[wilfredw]

How much percentage of the sales price is usually used to calculate commission? The background to my question is that I would like to pay a commision to third parties who would sell subscriptions to primemaths.


Thanks

[Andy Trish]

Wilfred I work a lot with primary schools rather than secondary but the going rate for selling on somebody elses software or services range from 20% to 45% 30% is the norm for them doing the sale whereas 20% is fair if they are just pushing through a lead.

it depends how much work the reseller needs to do to make any money, and the likelyhood of making good money. I sold Microsoft licences to one company last week and made £3200 in one sale - I do need to fund £80,000 for 30 days for that though and yes that is 4% but the figures are much higher on the profit.

[wilfredw]

Thanks. I am inclined to go for 20% for every successful signup.

[admagic]

Originally Posted by wilfredw

Thanks. I am inclined to go for 20% for every successful signup.

Here is standard info marketing wisdom

For information marketing which is essentially the business you are in - 50% of profit is common:

For digital delivery that is 50% of price - where with DVDs or CDs that can be 40% to allow for fulfillment.

Doing things this way means your products become attractive to joint venture partners...

The trick here is to have a 2 stage sale - an introductory and an advanced product, which you promote in the box (or 5-10 days later)

that way (say) 10-20% buy the advanced product at five times the price
and tht is where your real margin is made....

The key is to make your partners money, so you never have to sell yourself!!