If you are selling a third party product or service, what do you believe is a fair commission rate?

Scott_498

If you are selling a third party product or service, what do you believe is a fair commission rate?

Mike van der Valk

@Amit Sarda @Boris Tsibelman @Bernd Auer @Paul Minors Can any of you help out here with some suggestions?

Amit Sarda (AmitSarda.xyz)

@Mike van der Valk I would need a lot more context to answer this question, but a few things I will consider are:
- gross margin of the product/service for the company (do they have surplus to share?)
- lifecycle stage of the product/service (are they growing aggressively?)
- number of channel partners/sellers

Paul Minors

Yeah, that's a really tough one to answer as I think it would depend a lot on the industry and potential margin on the product. @Scott what is the product or service?

Scott_498

Okay.

So I am in tourism, we sell, small pax (up to 13 people) public tours. 4 stops, lunch, heaps of drinks. I am in Melbourne Australia so legit rich world pricing. Tours retail between $115-170pp.

Bernd Auer

Aussie Brewery Tour? I'm in... :-)

We are talking about selling your trips online, right? So like an affiliate/referral program?

If I want to know a typical share for a certain industry, I have a look at other affiliate programs. There is a nice page in Germany: https://www.100partnerprogramme.de/suche/?q=tourismus. As you can see, I searched for tourism. And then you search for a program which is as close to our products/services as possible. This gives a good indication. I am sure you will find a comparable site in Australia as well. Have a look at AWIN. I think they are active in your country too. In Germany, there is a quite well known company called Jochen Schweizer. They are selling "Experiences", so small trips, Bungee Jumping etc. High Price. They are offering up to 11%.

Paul Minors

So the commission you pay may vary a lot depending on your margin and the costs. But I'd be looking at somewhere in the 10-30% range potentially.

Scott_498

25-30% in our industry is normal. After being here a while it feels a little unsustainable for 25-30% of the RRP to be out the door on a single-seat sale.

Jörgen Sjöstrand_231

10% if a little sales job is done (aka referral). 
30% if the majority of the sales job is done.
50% if you value ad to the sale.