I have an apartment rental website asking me to advertise their apartments on my site. Each of their 'sales' will be at least 200 USD. Lots of them will be in the thousands. They are offering me 10 USD for each 'sale' that comes from my site. (Which would be a 5% commission is they make a minimum sale, but for many larger sales commission will be less than 5%, and often under 1%) Is this good or bad? If it is not good, what would be a good deal for this situation in your opinion? Do you think I should go with a flat rate commission like they have offered, or try and negotiate a percentage commission rate? All advice greatly appreciated!
Well, it depends on what you want to accept. Also, it would depend on the value of the transaction. Surely, $10 on $1000 transaction is not worth your while, $10 on $200 would be pretty good.
I would start off by basing it on your website traffic. Do you have a lot of traffic and already have client ads showing? If you dont have a lot of traffic and no sales then a little money for now is better than nothing. If you get good traffic then you have more of a negotiation tool.
That's why I was thinking of trying to negotiate a percentage deal. If I could get 5%, then it would be $10 on $200, pretty good, but of course it would also be $50 on $1000, which is also good. I think I will come in with a proposal of 10% commission, and hopefully by shooting for the stars I will at least hit the sky! (i.e. 5%)
I don't have a lot of traffic yet, and have no ads of any kind. I am holding off the ads at the moment for a reason - it is easier to build traffic with a completely non-commercial site. So, unless I can get a really good commission rate from these guys, I will not go with them, because I don't want to lose my non-commercial edge until I have built a lot more traffic, UNLESS there is a great monetary offer that persuades me to do so.
I have no idea what you are talking about! Do you mean I should ask them for a 40% cut of what they make from ads on my site? That would be great! But I think a little too optimistic!
i meant that a great commission is a commission that companies like moreniche.com offer. they offer 40 percent
The percentage depends on the niche. Info products are known to have high commission percentage (sometimes even 75%). It does not make sense to get a fixed commission if there are sales which can be large (thousands of dollars). If it is negotiable ask for twice as much as you think is realistic (say, 20%), and settle for 10%. As times goes by, and you bring in a lot of quality traffic, you'll become important to their business. In that point, you can negotiate to increase your percent, or ask for special bonuses.
I would suggest you try running the offer. If you get decent traffic going to them and get sales, you can always come to them and say "here is what I do for you, if you want my business this is what I want". At this point with no traffic and no other alternatives negotiating commissions is rather not productive. Test the offer send them a few hundred clicks and see how it converts. They you can see how it compares to other offers -- you can run credit report offers that we offer -- popular with apartment and home buyers and renters and they pay well. Test different offers and see what works best for you.