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  1. #1
    Full Member
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    January 18th, 2005
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    100
    Hi all:

    Do you think $.50 per transaction with 1 cookie day an acceptible payout for a music and movie merchant?

    I was told that the margins are pretty small. But almost all merchants pay 5% - 10% with some return days which makes me wonder why the margins can be so small for one particular merchant but not for others.

    Any ideas?

    Thanks

    snakebaby

  2. #2
    Member
    Join Date
    January 18th, 2005
    Posts
    112
    A quick calculation based on my results so far for January for my main DVD merchant -- not targetting CDs but the store does offer them too -- shows an average of £0.56 (just over $1 USD) commission per sale. And that merchant offers 4% commission with 30 return days. Repeat purchases are not tracked however.

  3. #3
    Full Member
    Join Date
    January 18th, 2005
    Posts
    100
    4% isn't bad. Low commission per sale means small sale, that's all. If someone ever orders $60 products, then the $$ can climb up. 4% is the lowest payout among these merchants. Many offer 10%. Timelife.com offers 15% commission (wondering how they can survive if the margins are as small as the other merchant claimed?). But paying $.50 per sale with 1 day cookie sure seems to be too stingy. Don't you think?

    I have dropped that merchant because of this. I can't afford making $.50 per sale when I have to pay $1 for the ads before making the sale.

    Hope I was told the truth about the margins. But then I'd suggest that merchant try to sell something else other than cds and dvds!!!

    snakebaby

  4. #4
    Member
    Join Date
    January 18th, 2005
    Posts
    112
    Yeah, it's pretty hot when I see someone ordering that Friends Series 1-10 boxed set Those are some fat commissions, 4% or not. Anyway, I'm more than happy with this program, as it converts an amazing 1/5 visitors - although admittedly some of them do manage to order things that cost £0.99

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