Need some numbers

Status
Not open for further replies.
alexb

alexb

Señor Member
Dec 6, 2007
1,510
21
0
Indiana
Hey all, I have a question that I hope someone can answer.
My boss is putting me in charge of an Adwords campaign for our company. The goal of this campaign is to attract new customers (duh). The customers are buying support packages that vary in size, but basically break down like this:

Package A - $400/month
Package B - $850/month
Package C - $1,700/month
Package D - $3,000/month

My boss is asking me how much I want to be compensated for leads/sales. I honestly have no idea, as I'm very new at this.

Looking at this from an affiliate marketing perspective, how much would you charge for a successful sale of each package?
 


50%

seriously though without knowing what you do what your margins are etc this is a useless question
 
They foot all marketing costs, you're already on the payroll and they want to pay you extra as an incentive?

Nice boss.

Margins are irrelevant, base your payout in a percentage off of profit. You will do a better job of insuring your campaigns run efficiently.

Sell one Package D - $3,000/month. Company estimates that 50% of that is profit, including marketing costs, labour etc. You charge 20% of the profit, you earn a cool $300 per lead.

Truthfully, it's whatever you think is fair. We don't know your situation. For example, you are obviously employed by this company, will this be done at work or is it to be completed at home on your own time?
 
Ok, I spoke with my business adviser (Dad) on the phone, and he suggested that the best option would probably be to request a percentage of the first month's revenue. I'd like 100%, of course, but I'll see how far they're willing to go at tomorrow's meeting.

Any thoughts until then would be appreciated.
 
Are any salespeople involved? If so, I'd lean towards being paid per lead.
 
stroz said:
assuming he can pull in leads & sales...not always the easiest thing to do
Click to expand...

Seriously. I hesitate to say what industry I'm in, so let's just say that the market is difficult. If I can get one sale per month, I'll be happy and my bosses will be ecstatic.
 
alexb said:
Seriously. I hesitate to say what industry I'm in, so let's just say that the market is difficult. If I can get one sale per month, I'll be happy and my bosses will be ecstatic.
Click to expand...
First months revenue? That's a rip off if youm plan on doing it long term.

Set out a revenue share model. Ask for 10% of revenue for life of the customert, meaning that $400/mo contract that you just sold is now worth $480/yr to you ;)

Sell 100 of those (not really all that hard on the interwebz) and you've got yourself a decent side income going there ;)

EDIT: I just realized who this was! Get me on IM buddy and we will chat business and whatnot.
 
Ok, just talked with the boss and we agreed on 5%/month for as long as the customer is a customer.

Not exactly what I was hoping for, but not too bad.
 
I would highly recommend you take no more than 30%. If you show your bosses that they can earn money from this, they will be more inclined to direct more money towards it. Spending $1,000/day and getting 80+ sales per month is better than letting your boss attempt to run the campaign with $100/day and getting only 4-5 sales per month. Your profit margin may be lower, but you want to make sure you convey to your boss that he can make money so he wants to continue this. The more money he's willing to put down, the more you'll ultimately make.
 
alexb said:
Ok, just talked with the boss and we agreed on 5%/month for as long as the customer is a customer.

Not exactly what I was hoping for, but not too bad.
Click to expand...

life of the customer is a lot better than a 1 time lead.....trust me I was in sales in my previous life and you will make more money with residual customers as long as your company does not suck and can keep a customer.
 
These being support packages should land you good coin in the long run if you are raking in commission over the life of the customer.

I would figure being support based, if your company does a good job supporting (insert what it is ya'll support here) then you should keep the customer and thus keep making the coin.
 
Status
Not open for further replies.
Top Bottom