Proper % on sales to partner company

suslik · #1 (**permalink**) 10-27-2003, 10:59 AM

We have been active in creating websites already for some years, but recently we started also with web-based software.
So we started to look for partners to sale our production around the world.

One partner company is interested in selling our products, but we can't agree in %, we would give them for sales.
We offer them about 20%, they want around 50%.

our responsibilities and expneces: all that is needed to create new software - software, hardware, expences on programmers, design, etc.

partner's responsibilities: selling our products, promoting and advertising us in their region.

so what do u think, folks, what should the proper % be?

TheWebDoctor(tm) · #2 (**permalink**) 10-27-2003, 04:00 PM

The question boils down to how much would the partner be investing? What are the advertising costs, employee costs, etc.?

If those figures equal your expenses, then 50% would be adequate. However, their expenses could be higher than yours.

However, I have found that 25% is more than adequate for a sales commission in this type of format.

As a note, I pay my PR Firm 25% on each sale. Anyone that wants more than that is off bounds.