Is 8-10% too much?

[pardo]

We have been offered an affiliate partnership and will get 3% on each sale. I am familiar with the business and know the company must have 100% commission on buying and selling these items (buys it for 50 - sells it for 100). I did a proposal for about 8-10% and ask for a higher commission rate if numbers of purchased items will grow in the future.

Is this a reasonable request? We are not making a living of our site but can use ofcourse any income. Therefor I don't want to 'give' it away and think the proposed commission is a fair commission.

Any comment or feedback would be very much appreciated for this is my first step into affiliate marketing.

[DrCool]

8-10% would be more than reasonable. 3% is ridiculously low.

Many affiliate programs I have seen pay around 30-50% of the profit. Some pay much more, some pay much less depending on the product. For the example you give that would be around 15-25% of the total price. Definatly ask for more than 3%.

[rcjordan]

> 3% is ridiculously low

Yep. Walk away from that one.

[Catalyst]

Yes, I'd go for 8-10% to start with volume performance incentives getting you up into the 12 -15% range. Don't forget to negotiate cookies and recurring commissions. Ask for 45 day cookies at least and don't settle for under 30. Ask for unlimited recurring sales and don't settle for less than 3. That's what I would ask for and since I play the affiliate manager side of the fence also, I think that should also sound fair to them.

If they don't got for it, I would not waste my time for 3%. Find another merchant in that space that's interested in creating a fair partner relationship.

Linda

[edited by: eljefe3 at 4:42 am (utc) on May 20, 2003]

[BranMuffin]

Hey All!

My philosophy in regard to negotiating sales of any kind is"It is easier to fall down a flight of stairs than crawl back up!" Ask for more than what you will actually accept, this gives you room to play with. Everyone is right, 3% sounds very low. You can ask for a tiered commission based on performance, a higher commission based on a flat rate and a decent commission that continues with reaccurring sales.

[edited by: rcjordan at 3:54 am (utc) on May 16, 2003]
[edit reason] See this forum's charter, please. [/edit]