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May 10th, 2010, 11:42 PM #1
Question regarding List Pricing and Affiliate Commissions
- Join Date
- May 10th, 2010
- San Jose, CA
This may be a dumb question, but how do most merchants issue a commission to their affiliates? Is it a % of the list price if you sell an item or a % of the sell price? The reason I ask is I noticed one well know merchant seems to be using list prices for several manufacturer's items that are LESS than the published list price. I know this because I am familiar with the manufacturer's (current) list pricing. Their pricing seems to be wrong on every item in this category.
If I sign up with said merchant and they are not using the correct list price, do I loose out on a percentage of my commission?
Are there any sort of guidelines on how companies like this issue commissions to their affiliates? I want to become an affiliate for them but ONLY if the commission structure is transparent.
Thanks all for the help!
May 10th, 2010, 11:49 PM #2
Commissions paid as percentage of sale are based upon the amount that the item(s) are sold for.
Almost every product in existence is sold for less than "list price" at most stores online and off.
There is nothing "not transparent" about a vendor paying commission on the "selling price" as opposed to the "list price". You could seek out merchants who do charge list price, but then you'll have a rough time making any sales at all when shoppers can get a lower price from any of that merchant's competitors.
May 11th, 2010, 12:16 AM #3
All network require that you define how the commission is paid i.e. sale price that does not include tax pr shipping. It is common to show the MSRP (manufacturers suggested retail price) but the sale price is lower.
Some programs pay a lower commission for on sale items, clearance, refurbished products.
If you want to list the network its possible we can list the description of how the commission is determined.
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