Set up fee by potential affiliates?

[rubysky]

Hello,

I'm one of the owners of a small/medium size ecommerce site and we are starting out in affiliate marketing. We sent out emails to recruit potential affiliates which match our product lines.

We have received an offer from one of the more respectable affiliates requesting for a setup fee + higher commission to feature our site.

Is this something unusual or it is the norm for some respectable affiliates? Any idea on how we can negociate for a better deal?

Thanks a lot in advance.

RS.

[ThomasB]

I've never heard of it before, but I'd agree if they accept tiered commissions. The more sales they generate, the more commission they get. That's a fair deal I'd say.
Feel free to sticky me if you want some examples or if you're still looking for affiliates.

[jomaxx]

The higher commission is quite common. I've never heard of a setup fee being charged by an affiliate, but you have to recognize that any serious site is making a big investment in you when they take the time to test your ads. The value of their time can run into the hundreds, even thousands, of dollars, plus there's the lost revenue from any programs they may be replacing.

From a pragmatic point of view, it all comes down to how much you want to land them as an affiliate and how much you think they can earn for you in the long run.