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August 13th, 2007, 12:26 PM #1Merchant Commissions Not as Advertised
I've noticed in the past that when you do a search for merchants and look at the program summaries that come up, and even when you look at a merchant's "Program Details", the infomration provided as the "Commission Structure" is not always accurate. However, when the percentage listed is a link, clicking on the link usually provides no further information.
Only when you go throug the sometimes lenghty "Merchant's Terms of Agreement", if even then, do you find a more detailed, and frequently different, commission structure.
So, I was looking through the list of new merchant's for August, and I found an appealing new merchant, whose commission structure was listed in the summary as "20% per sale". I clicked on "Program Details" and again, near the top of the merchant's info it was stated "Sale Commission: 20.00 %".
Only after going through a lengthy section of merchant's terms much further down on the page, did I find a chart of "Referral Fee Rates by Product Category", setting out 6 separate product catagories, each with its own separate commission rates, and each catagory was further divided into 5 different commission rates, according to monthly sales.
The rates for the 6 catagories, for sales up to $2,000 per month (in each catagory) ranged from 3% to 12%.
In only 1 of the 6 catagories could you ever reach a 20% commission rate, and that is only for sales reaching $100,000 per month.
I think for a merchant to be able to advertise their commission rate in this situation as 20% is more than misleading, but is actually deceitful.
August 13th, 2007, 07:54 PM #2
- Join Date
- March 17th, 2007
Why with hold the name, let us all stay clear.
August 13th, 2007, 08:02 PM #3Originally Posted by Dan367
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