Best way to reward a referrals

suggestions for rewarding web developers for referrals

[mattapo]

My company is developing a web analytics system. We will be selling to mostly ISPs and Web developers.
My question is what you all think is the best way to reward referrals to a service like this?
I am sure other ASPs would be interested in this as well.

[etechsupport]

You can reward as per the merit of their individual contribution. However If you can be little more specific probably you can get more good suggestion from members.

[mattapo]

Sorry I should have been more specific. I am wondering if something like an upfront payment is more attractive than an ongoing percentage, and if so, what percentage is generally considered appealing on a product that sells for less than $50 a month?

[etechsupport]

I would suggest the reward should not be calculated on the selling price, it should be calculated on the profit which you're getting after selling it on $ 50, you can share from your margin of profit say 2 to 3%.While on other hand many people are increasing the selling price after adding value on it and thereafter adding directly the actual cost of that reward.
You can choose any option from above method for referral rewards which is most suitable without making loss.

[Stores]

I think recurring monthly commissions are most attractive.

A reseller program could work well also. You set the base fee and allow the agency to charge whatever they want.

[mattapo]

Thanks for the advise. I like the reseller idea, is there conflict with the fact that we would obviously sell direct through our own site?
How important is the ability to brand in the resellers brand?

[Stores]

Thanks for the advise. I like the reseller idea, is there conflict with the fact that we would obviously sell direct through our own site?

There is no conflict as long as you are upfront with your resellers about it and sell it at a good enough price to allow the resellers to make a decent margin.

How important is the ability to brand in the resellers brand?

It will make it more attractive for a reseller to sell your product if they can brand it as their own. Its not always necessary...but definitely will help bring you more sales if you allow them to brand it.

[etechsupport]

I think usually the resellers are dealing with two or three companies, they could not concentrate especially to your product or service for branding. I also don't think that they would be highly skilled and expertise for branding purpose.