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Commission Dilemma for Webmaster
bread

5+ Year Member



 
Msg#: 3265452 posted 3:19 pm on Feb 27, 2007 (gmt 0)

Hi,

Wasn't sure where to post this, so I apologise if it's in the wrong place.

I'm in a bit of a dilemma, I've been offered a job with some good people I know personally. They're ambitious and trustworthy and I have a feeling that their new company will go far.

The company is involved in tourism, mainly large incentive and team building programmes.

My job will be to create, maintain and market the website for the main company and it's franchises (of which there will be about 5 or so around the world)

I will be paid a small retainer and then get a commission on all sales made by visitors originating from the website, and my web marketing efforts. These commissions will be based on the same commissions that the company's agents receive on a sale.

My problem is that the owners (2 of them) want to split the commission 3 ways, 1/3 for me and 2/3 for them. Now I want this opportunity, it will mean being involved in something I can relate to, it will mean travel, and assuming I do my job properly could result in a lucrative income.

... but i think that a 3 way split is unfair - am I being greedy? I'm doing all the work, creating a site that they desperately need (that they can refer people to for information, in which case I won't get that commission)and marketing AND maintaining it.

I do think I should share my commission with the person in the office who takes on the query I send them (from the site) and closes the sale, but I don't think I should be sharing it with the company owners - this is a marketing tool and not another way for them to make income (they're already making a tidy sum from the actual event)

I'm thinking that I should propose a 60% for me, 30% for the closer, and 10% for the Company (although I honestly don't think they should get any :-) it's more of a peace offering)

I'd really appreciate any advice - in case I have it all wrong and make myself look stupid when I go to them with this,

Thanks in advance,
Brad

 

justablink

5+ Year Member



 
Msg#: 3265452 posted 3:35 pm on Feb 27, 2007 (gmt 0)

Welcome to WW, bread.
Not knowing all the particulars, I think their commission offering is fair, if the sales are there. Ask them for sales projections at 3, 6, and 12 months. Then, once you have what they want to achieve, figure out what you CAN achieve realistically, and if that is enough for you to be happy with.
With that in mind, I would then propose your current commission structure, with an escalator. For instance, if your commission is 2% when sales hit $1M, then ask them for an escalator that if you hit $1.25M, you double your commission. You figure what is right for you, and most people usually don't argue commission if you are bringing in more. Lock in your escalator rate for at least 2 years so you don't get hit with a changing commission structure after 1 year of success.
Good luck!
justablink

excell

10+ Year Member



 
Msg#: 3265452 posted 3:43 pm on Feb 27, 2007 (gmt 0)

One question I would ask myself... Do they need me more than I need them?

If yes then don't do it, create your own business model and structure with your expertise and industry contacts.

Set your own criteria and costings = income.

On the other hand - if you indeed do need them - then weigh it up as to who is putting in and where you want to take it...(if you don't go with them are they going to do it on their own anyway?)

How much work would be involved for you - is it worth it?

bread

5+ Year Member



 
Msg#: 3265452 posted 8:18 am on Feb 28, 2007 (gmt 0)

Thank you,
Your comments are very useful,
Brad

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