My company currently produced and sells a roulette gambling package on
how to beat the game of roulette. We currently sell a product for
$300 to customers around the world and have one reseller we pay 50% to
(that may or may not have been a good idea, but the reseller is
definately motivated!). My business partner and I are revising our
current system, and developing an advanced system. We plan on selling
it for around $700 - along with a few other related products we
develop in-house.
My vision is to be the top affiliate. For example, I want other
websites to offer our products, but all the payments and shipping go
through us. In return, I give the referring website a percentage of
the gross sale. I envision some price control, maybe 10% (for
example, the other website would not be able to sell the product less
than $630).
The creation of the package will probably cost me around $10 - $15K.
I believe we can sell 500 in the next two years. Be aware (if you
believe it or not) that our product is very unique with high
intellectual value - one of it's kind in the world, and we want that
to be reflected in the answers in the next paragraph.
So my question is, being top affiliate, what percentage should I offer
to distributors? 20%, 30%, 40%?? The distributors only purpose in
life is to refer orders to my own website. What about price control?
Websites should be able to offer discounts, but how much? Is 10% too
much or too little?
Thank you in advance. |