Struggling with finding a good commission model

[focusST]

Hello. Im in the early stages of starting a business and im stuck.

Im clueless about commission. As an overview, im selling tickets to gigs and other large events which i am organising myself (meaning im not buying off ebay and trying to flog it like we are hearing about in the news.)

I cant afford to pay any base salary to staff, and its only going to be the weekend that we are operating anyway.

So how much commission would be fair. bear in mind i obviously want to keep my profits up but equally, i want my sales team to stick around and feel valued.

If i sell the tickets at £5 (for arguments sake) would it be fair to say 20%? or is that going to eat away at my profits.

My working is that for 1 days work at 6.50 and hour, youd make £52 so working with the £5 pound ticket, you basically need to sell 52 to make it viable, which i think is achievable. Bearing in mind im looking to sell around 1000 a day, split between a staff of 5 or 6.

that might be a bit over optimistic but im more worried about the %age rate.

Any ideas?

 

[investmentsense]

1000 a day between 5 people?

That would be 200 tickets a day each......I would start off by examining your business model a little more closely and find out what is more realistic.

 

[focusST]

1000 a day between 5 people?

That would be 200 tickets a day each......I would start off by examining your business model a little more closely and find out what is more realistic.

i did say that was over optimistic. My main concern is the commisiion percentage.

 

[MH1]

My main concern is the commisiion percentage.

You set the commission to hit a target, you first need to work out your costs etc and work out how any tickets you feel you really can sell for the event, and then decide the price and commission, and then re-check your figures.

So if your overheads are £500 for the day, and you feel sales of 100 are the true figure, you would need to sell 100 at £5 a head by yourself just to break even, 100 at £10 a head gives you £5 profit per ticket, so 30% commission would earn you £350 profit and so on.

At £10 a head you might sell 10, 30, 100 or 500 tickets, that's the hard bit to figure out.

The most important thing is the true number of expected sales, don't just make figures up to suit your requirements.

 

[focusST]

You set the commission to hit a target, you first need to work out your costs etc and work out how any tickets you feel you really can sell for the event, and then decide the price and commission, and then re-check your figures.

So if your overheads are £500 for the day, and you feel sales of 100 are the true figure, you would need to sell 100 at £5 a head by yourself just to break even, 100 at £10 a head gives you £5 profit per ticket, so 30% commission would earn you £350 profit and so on.

At £10 a head you might sell 10, 30, 100 or 500 tickets, that's the hard bit to figure out.

The most important thing is the true number of expected sales, don't just make figures up to suit your requirements.

thanks. so basically, i need to work out realistic figures see how much profit i would make then decide how much of that im willing to give away as commission and offer that. makes sense.

 

[MH1]

Working out the actual likely ticket numbers is the hard part, since you might sell 200 at £5, but only 10 at £20. Your priority is to work out the best ticket price to sales ratio to generate the best profit, once you feel you have an accuraeidea you can then decide how much commission you can afford to give away, assuming you believe you are going to make a profit.

 

[i234i]

Im heavily involved in this market! If you want to pm any questions.

You could sell 5 tickets for a local band or 50,000 for bon jovi - who are you putting on? This is probably the main thing that means people will be interested or not.

There are a few other ways to sell tickets for events that are not having someone go out on the street.

 

[NewVix]

How much is your advertising budget you have planned for your business each month?