Determine commission/referral fee?

energizedit

Well-known member
Registered
Joined
Dec 13, 2016
Messages
259
Points
18
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

Well-known member
Hosting Provider
Registered
Joined
Jul 5, 2016
Messages
1,031
Points
63
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

Well-known member
Hosting Provider
Registered
Joined
Nov 26, 2014
Messages
374
Points
28
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

Well-known member
Hosting Provider
Registered
Joined
Jul 5, 2016
Messages
1,031
Points
63
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 :D
 

energizedit

Well-known member
Registered
Joined
Dec 13, 2016
Messages
259
Points
18
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
 

HostXNow

Well-known member
Hosting Provider
Registered
Joined
Nov 26, 2014
Messages
374
Points
28
HostXNow
Or prices our already very competitive e.g 5GB Reseller with lots of server resources for just £4/month!? Fully managed cPanel SSD VPS with good specs starting from £35/month and of course when discounts are used the pricing is even better. If you add 25% recurring commission to the mix, there is not enough profit top pay suppliers and staff and other everyday costs.

Many are happy to recommend us without even using affiliate links due to the excellent service we are known to offer, and so we do not need to offer high amounts of commission to affiliates. There is EIG for that, and their service is poor partly because of a large amount of commission they offer/the marketing they do.

You may not think 10% per sale is a lot, but it soon adds up. Some providers who also offer great service offer no commission at all, but that is mainly because they are a much larger provider with a great rep and so do not need to.

It depends on the business model etc.
 
Latest Threads
Replies
0
Views
24
Replies
0
Views
70
Replies
1
Views
223
Recommended Threads

Latest Hosting OffersNew Reviews

Sponsors

Tag Cloud

You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.

Top