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  1. #1
    Newbie
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    June 5th, 2006
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    negotiating the best commission
    My website brings some spend-happy customers and I have two alpha merchants competiting for my referrals. It's a great position to be in, but I don't want to burn my relationship with either by churning them. All other merchants offer 10% but these two have been one-upping each other and now one is giving me 25% with a 40% tier if I can meet an outlandish revenue target. The other alpha, who has better conversions, called me today and said that he doesn't like paying 25%, but he'll do it since he recognizes that it's the cost of doing business.

    Any ideas on how to negotiate the "best" commission without pissing these guys off? Should I give notice once I receive a higher rate? How about significantly higher? Should I have any conscience that I'm "stiffing" the merchant I'm leaving, letting him hold the bag with his newly acquired inventory?

    BTW: What's the highest real commission that anyone ever heard of?

    Thanks.

  2. #2
    Full Member Zdig's Avatar
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    February 26th, 2005
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    274
    figure out what their margins are, always good to know

  3. #3
    Moderator MichaelColey's Avatar
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    Is there any reason you couldn't promote both?
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  4. #4
    AM Navigator Geno Prussakov's Avatar
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    May 10th, 2005
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    Quote Originally Posted by MichaelColey
    Is there any reason you couldn't promote both?
    Conflicting products? Same suppliers?

  5. #5
    Newbie
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    June 5th, 2006
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    8
    Great questions. Thanks.

    I agree, finding out their margins would be great. I'll have to work on that... cost of the product, fulfillment, overhead etc - anything else?

    If I split the business between the both of them, that will probably kill any chance for hitting the 40% tier. Also, if I started out with this philosophy, I'd still be at 10%.

    They both sell the same products from the same suppliers.

  6. #6
    Newbie
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    December 15th, 2005
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    35
    Is the product a subscription type product where the customer comes back over and over? If so even 40% might be too low.

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