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  1. #1
    Join Date
    June 5th, 2006
    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?


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

  3. #3
    Moderator MichaelColey's Avatar
    Join Date
    January 18th, 2005
    Mansfield, TX
    Is there any reason you couldn't promote both?

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

  5. #5
    Join Date
    June 5th, 2006
    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
    Join Date
    December 15th, 2005
    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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