Affiliate Marketing Tycoon

**lerxtjr** · 04-04-2005, 01:03 AM

A guy brings me quite a bit of new web site design, programming and consulting business. Now he wants a referral commission. What do you recommend?

He also wants 2nd tier commission so if one of his referrals becomes a client and then that client refers a new client, he would want commission for that too. How much would you recommend I pay him for the 2nd level?

What an accounting headache this will be.

Thanks in advance for your comments.

**WealthStream** · 04-04-2005, 03:57 AM

It obviously depends quite a bit on how much your services cost, and what your profit margins are. I think 10% for direct sales and 2% for indirect sales would be pretty reasonable, but that's really just a shot in the dark.

**HaRRo** · 04-04-2005, 04:07 AM

Agreed. You dont want to be paying much out as you will loose a lot!

And welcome to webmaster-talk

**easdesign.com** · 04-11-2005, 10:18 AM

I pretty good program for this is located at http://www.idevdirect.com Check out the software there for setting up 2nd Tier Sales

**rewq007** · 04-23-2005, 04:43 PM

lerxtjr,

Drop me a line. I run stmadeveloper and I pay commissions for referrals. It's not a "huge" pain in the butt.

Mostly it works like this, when they pay a deposit, or the final payment I insert a special code in the payment buttons. (I use either paypal, 2checkout, etc..) It credits whoever sent them to the site through an affiliate link.

That way I am not micro-managing, it's just a few seconds for each payment.

I pay a small percentage on design, programming, and turnkey sites...that's so I can keep my costs down. However for quick things like pre-made scripts I up it a good bit more.

If you need a good affiliate script for this, I can cut you a great deal on the stma affiliate script. It's working perfectly for us.