jumpenjuhosaphat

If I were to place a product on my website for a supplier, say a camcorder, and were to post all the specs, the price and any other pertenant information with an "add to cart" link that took the customer to the suppliers web page, how much would that click through be worth? I was thinking a flat rate for the customer looking at the ad, maybe $.05, and then a commision if the buyer clicked add to cart, whether they bought it or not.

What do you think in this situation would be a fair commision? Do you think this type of marketing would be effective?

Also, would it be fair to charge a setup fee, a listing fee or an upfront fee to place the product on my page in the first place, like $2.50 or so for a one year listing on each single product?

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Katey

Hi there,

I would myself give the person who was hosting the button very little for the click through (whether they bought it or not) as they are scams were people make bots to click through hundreds of times a minute, and therefore make lots of cash from doing absolutely nothing. You in that hand lose out big time if it's on a big scale.

Maybe $0.005, but have a term where people who only receive so many visitors a month can use your service, that way, $0.005 isn't that bad. I'd offer the service to people who receive at least 500,000 hits a month. I have done a service similar to this before and it's works very well for both ends of the market.

However, if someone does click through and buy the product I would give the between 10-20% of the total price (excluding VAT), whatever you do do not give them 10-20% of commission including the VAT or you will end up paying tax out of your own pocket. Not trying to make you sound stupid although people do forget.

The setup charge I think is not necessary as in the long run, they are a bringing business to you, if you offer this for free, people see this as being a goldmine in which it is, although the wholesaler actually gain more business and money!

I have done this sort of thing before so I have first hand experience, however get some research going first, there is nothing wrong with taking different approaches then what I have explained, although I have found this one the most effective and profitable. Ask people who you know use referral methods, but don't make those silly mistakes that will turn you bankrupt in the long run.

Good luck on your business ventures.


Regards,
Kieran Taylor.

jumpenjuhosaphat

I was acutally considering offering the page that the products would be listed on. There are ways of authinticating click throughs, obviously, if a click through occurs 20 times, and no purchase, then something is wrong. I was actually wondering what would be the approximate conversion rate of the click throughs that turned into sales. With this type of advertising, when someone clicks the buy it now button, the chance in them backing out would be 2 out of 3, meaning that 1 out of 3 made an actual purchace. That's just speculative, I don't know personally. However, if that were the case, if you could expect a 3% commision per sale, and 1 in 3 clicks converted to a sale, then would it also be safe to assume that a 1% per click through would be a fair price?

Basically, I am making the sale for the supplier, and in return, he is giving me a commision for that sale, not for listing the ad. That answers 2 of my first questions, I guess to request payment for making a sale, and payment for the advertising that made the sale possible would be a double charge of sorts.

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Katey

Hi there,

Yes, true there are ways of authenticating the click through, although to assume that 20 clicks and no purchase there must be something wrong sound odd, remember that would only be an average, some days products may not sell a single one, and one day they may fly off the shelf, it is all matter of chance.

Never mind if only the world was free of scammers life would be so easy .

Did my above post answer any of your questions?


Regards,
Kieran Taylor.