SEO & Commission

[EPD]

Hi,

I am new to the site after finally registering after reading some good threads on here.

Are there any SEO companies that anyone knows of, or even private SEO individuals who would work on SEO for me in return for a profit share on sales?

My product is variable and is generally around the 35% GPM.

I have read many reviews on SEO but I am still unsure as to whether it is a worthwile option and paying for the service on a commission basis makes me feel more secure that I will get a good return.

Any thoughts/Ideas are welcome or any endorsements from other companies using SEO who can genuinely say it has improved there business with increased conversions and not just increased traffic.

Thanks

Rob.

[OldWelshGuy]

So you are offering commission for life I take it ? Or are you offering a % of the business ownership in return for work provided?

There are always deals to be done, as long as they are fair for all parties concerned.

[EPD]

Hi OWG,

Thanks for the reply.

Yes I would look to set-up a new company who would trade online only as this would be the best option as to where the business has come from and for the person/company doing the SEO to see the actual revenues coming in to give a greater transparency of there share.

A typical order would make approx £8.00 from a £20.00 sale and I would be looking at giving around 20% to the person/company doing the SEO. IE: £1.60 per sale to the SEO party which I know maybe does not sound a lot but I would envisage with the right google listing 100 orders per day could be easily achieved quite from the early months so £160.00 per day would be a good return? Please feel free to comment on if this is a realistic fee to pay as I want to reward right and I feel 20% of all sales is very generous!

Thanks

Rob

[sirearl]

Hi OWG,

Thanks for the reply.

Yes I would look to set-up a new company who would trade online only as this would be the best option as to where the business has come from and for the person/company doing the SEO to see the actual revenues coming in to give a greater transparency of there share.

A typical order would make approx £8.00 from a £20.00 sale and I would be looking at giving around 20% to the person/company doing the SEO. IE: £1.60 per sale to the SEO party which I know maybe does not sound a lot but I would envisage with the right google listing 100 orders per day could be easily achieved quite from the early months so £160.00 per day would be a good return? Please feel free to comment on if this is a realistic fee to pay as I want to reward right and I feel 20% of all sales is very generous!

Thanks

Rob

Hi Rob couple of questions.

What is your product and how do you know it would sell at 100 per day.?

Why would an SEO be content with 20% when they may well be able to have 100% by setting up there own site.?

What would you be doing for the 80%.?

Earl

[directmarketingadvice]

A typical order would make approx £8.00 from a £20.00 sale and I would be looking at giving around 20% to the person/company doing the SEO. IE: £1.60 per sale to the SEO party which I know maybe does not sound a lot

If you offered that deal to an affiliate, they'd probably tell you to get stuffed.

A fairer deal would be 50% of the commission from the initial sale the customer makes.

(And you get to keep all the profits from repeat purchases)

Steve

[WeblinkPlus]

A typical order would make approx £8.00 from a £20.00 sale and I would be looking at giving around 20% to the person/company doing the SEO. IE: £1.60 per sale to the SEO party which I know maybe does not sound a lot but I would envisage with the right google listing 100 orders per day could be easily achieved quite from the early months so £160.00 per day would be a good return? Please feel free to comment on if this is a realistic fee to pay as I want to reward right and I feel 20% of all sales is very generous!


As an affiliate, I get 50-75% and in a couple of cases 100% of products selling much higher than £20. Why would I consider this deal?

Marketing is always the highest cost in any business.

[Tej]

If you offered that deal to an affiliate, they'd probably tell you to get stuffed.

A fairer deal would be 50% of the commission from the initial sale the customer makes.

(And you get to keep all the profits from repeat purchases)

Steve

Sounds like a very fair offer.

I trust you meant 50% of the profit from the initial sale?

As a total layman in these matters.. how would you go about the transparency angle?. How would this work in reality as far as new/repeat business is concerned?... in other words.. there would have to be a lot of trust to know you were getting the right remuneration for the work you put in.

Would this be easily workable?

If its a silly question.. please let me know.

[RedEvo]

If your budget for SEO is tight on non existent why not learn about SEO and do it yourself. SEO isn't hard, it's just hard work ;)

d

[EPD]

Hi Rob couple of questions.

What is your product and how do you know it would sell at 100 per day.?

Why would an SEO be content with 20% when they may well be able to have 100% by setting up there own site.?

What would you be doing for the 80%.?

Earl

Hi Earl,

My product is a service aimed at Businesses and I have worked this industry for over 15 years and know where my target market is and that my cost and sale prices are very good.

I suppose someone else could easily set up another site but they would not be able to offer the right sell price as there buy rate would not be good enough.

For the 80% I take the credit risk and do all the manual work needed to ensure the service is delivered. I also not to mention have the costs associated with running a business like Offices, Cars, Phones Etc Etc.

Thanks for the Reply.

[EPD]

If you offered that deal to an affiliate, they'd probably tell you to get stuffed.

A fairer deal would be 50% of the commission from the initial sale the customer makes.

(And you get to keep all the profits from repeat purchases)

Steve

Hi Steve,

Thanks for the reply.

My deal would be 20% of the initial profit and then 20% off all future profits so I think the offer is generous. I would basically give a 20% share of the company to the individual/company.

Thanks

Rob

[EPD]

As an affiliate, I get 50-75% and in a couple of cases 100% of products selling much higher than £20. Why would I consider this deal?

Marketing is always the highest cost in any business.

Hi,

Thanks for replying. As mentioned in the OP, I was looking for advice not offering you a deal.

The whole point was so I can guage what peoples opinions are.

I appreciate your response as it is a good insight as to what Affiliates make but my business could not afford to give 100% as I would make no money.

Quite how anyone can offer 100% to the affiliate and make money is beyond me!


Thanks anyway and good luck with the affiliate schemes as they seem to be very generous.

Rob

[EPD]

Sounds like a very fair offer.

I trust you meant 50% of the profit from the initial sale?

As a total layman in these matters.. how would you go about the transparency angle?. How would this work in reality as far as new/repeat business is concerned?... in other words.. there would have to be a lot of trust to know you were getting the right remuneration for the work you put in.

Would this be easily workable?

If its a silly question.. please let me know.

Hi Tej,

Thanks for the reply.

In terms of transparency any person/company would be given shares in the company hence they would be able to access all turnover/profit figures to ensure complete transparency.

Thanks

Rob

[EPD]

If your budget for SEO is tight on non existent why not learn about SEO and do it yourself. SEO isn't hard, it's just hard work ;)

d

Hi RedEvo,

There is so much SEO content on the Internet that I do not know which piece of information is correct or not.

I do not mind doing the hard work but I would be very interested in any recommendations you can make with regards to a good book on learning the subject.

Thanks,

Rob

[sirearl]

Quite how anyone can offer 100% to the affiliate and make money is beyond me!






yeah i would be interested in how that can work.?:|:)

Earl

[mattsaw]

yeah i would be interested in how that can work.?

There are many industries that offer 100% of the initial sale to affliates and then make their money from upsells and resales.

[mattsaw]

Hi RedEvo,

There is so much SEO content on the Internet that I do not know which piece of information is correct or not.

I do not mind doing the hard work but I would be very interested in any recommendations you can make with regards to a good book on learning the subject.

Thanks,

Rob

I started this thread a few months ago - http://www.ukbusinessforums.co.uk/forums/showthread.php?t=133114 It should be a good starting point.

[WeblinkPlus]

I appreciate your response as it is a good insight as to what Affiliates make but my business could not afford to give 100% as I would make no money.

Quite how anyone can offer 100% to the affiliate and make money is beyond me!


You need to look at lifetime customer value. Those that offer 100% are looking at adding people to their list to sell more product later.

I should also add that I run a number of ecommerce stores which all make much more profit per sale than you are offering - it's just not much of a deal IMHO...

[OldWelshGuy]

So you are offering 20% of the sale value as direct revenue, PLUS 20% of the company?

I assume that there will be a cast iron clause with regard watering down of share value? I.E. 20% means 20% no scandalous salary paid to yourself meaning there is no money left for dividends, 20% of the net revenue salary paid to the aprtner?

So I am saying that 20% of sale goes direct as a sales commission, PLUS 20% of the net revenue as a salary? (you get the other 80%

e.g.
1000 sales = £200 to SEO

800 left,
200 costs

600 left net.

480 to you
120 to seo partner

Do I have that right?

[EPD]

So you are offering 20% of the sale value as direct revenue, PLUS 20% of the company?

I assume that there will be a cast iron clause with regard watering down of share value? I.E. 20% means 20% no scandalous salary paid to yourself meaning there is no money left for dividends, 20% of the net revenue salary paid to the aprtner?

So I am saying that 20% of sale goes direct as a sales commission, PLUS 20% of the net revenue as a salary? (you get the other 80%

e.g.
1000 sales = £200 to SEO

800 left,
200 costs

600 left net.

480 to you
120 to seo partner

Do I have that right?

Hi OWG,

I would pay the partner 20% of the profit.

Ie, average order = £20.00 Profit = £8.00 Partner gets 20% = £1.60

So 1000 sales would give the partner £1600.

I would take no salary as I would only make payments via dividends quarterly and therefore there is full transparency regarding the turnover and profits.

[OldWelshGuy]

Ok I see that, so does the SEO get 20% of the dividend payment and you get 80%? This is what I am asking. Or are you saying that the SEO gets 20%, end of story? I ask as it isn't clear what the offer is.

[Webtistic]

I think to assess this, it may be useful if you could go into more detail with regard to your website and what you have to offer...

[sirearl]

A 1,000 sales to make 1600 quid.:eek:

Earl

[directmarketingadvice]

A 1,000 sales to make 1600 quid.:eek:

Earl

And what's the conversion rate?

If it's 2% then it's 50,000 visitors = £1,600 - i.e. you'd get 3.2p for each visitor you get him.

Surely there are better things you can do with traffic?

Steve

[EPD]

Ok I see that, so does the SEO get 20% of the dividend payment and you get 80%? This is what I am asking. Or are you saying that the SEO gets 20%, end of story? I ask as it isn't clear what the offer is.

Yes sorry OWG, the SEO gets 20% Dividend and I take 80% dividend.

[EPD]

A 1,000 sales to make 1600 quid.:eek:

Earl

Hi Earl,

Yes sounds daunting but the service typically is used probably 10 times a month per customer. Hence once 100 regular customers start using the service and like it, they will continue to use. 1000 sales per month from 10 customers. And so on, therefore has good potential to make some good money.

[EPD]

And what's the conversion rate?

If it's 2% then it's 50,000 visitors = £1,600 - i.e. you'd get 3.2p for each visitor you get him.

Surely there are better things you can do with traffic?

Steve

Hi Steve, having scoured the web my service is the cheapest out there and therefore conversion rate should be very high. Again the business is all around repeat business coming back time and time again.

The more volume we produce the cheaper our buy rate becomes and therefore the SEO and my dividend increases.

[sirearl]

Hi Earl,

Yes sounds daunting but the service typically is used probably 10 times a month per customer. Hence once 100 regular customers start using the service and like it, they will continue to use. 1000 sales per month from 10 customers. And so on, therefore has good potential to make some good money.

without knowing what the product is.

One could not possibly comment.:D

scratches head who spends £20 ten times a month.?

Can I look through the letterbox.?:p

Earl

[EPD]

without knowing what the product is.

One could not possibly comment.:D

scratches head who spends £20 ten times a month.?

Can I look through the letterbox.?:p

Earl

Ha ha, sorry guys but I am a lttle coy regarding putting the full information of the product in an open forum at present.

To give an incling although maybe not much of one but businesses would spend £20, ten times per month.


Thanks all for the replies and advice and it's all appreciated. If anyone is interested more please PM as I feel the thread has now run it's course.