Determine commission/referral fee?

energizedit · Dec 21, 2016

How would you determine a fair commission to pay someone who will be sending clients to your company?

Would you base this on the sales the customer generates?
A flat fee?

What are your thoughts?

LJSHost · Dec 21, 2016

25% of all transactions for that customer would be a good figure, 1/4 for your affiliate 3/4 for you. It's a fair deal.

HostXNow · Dec 21, 2016

We just offer 10% to all. Recurring is too much. A lot of hardware/network costs are going up due to the Brexit and is affecting a lot of small businesses that's for sure. I think 10% per sale is safe and fair.

LJSHost · Dec 21, 2016

As you can see from the responses OP their is a varied range and all are workable.
The way I've always looked at affiliates is it's business you would not of got without the affiliate so a slice of the pie no matter how small that slice maybe is still a slice

R Langley · Dec 22, 2016

10%-30% is always good depending on the product.

energizedit · Dec 22, 2016

What do you mean by %10 to all, Recurring is too much...

You just give them a one time 10% commission based on one sale? What if the customer signs up for monthly payment plan? You only give 10% of the first month?

Thanks

Rectified · Dec 28, 2016

We provide 20% as affiliate for all our service except dedicated server, for dedicated server give flat 5$ per server order

Determine commission/referral fee?

energizedit

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LJSHost

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HostXNow

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LJSHost

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R Langley

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energizedit

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HostXNow

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Rectified

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