Marketing - paying kickbacks, referrals and commissions?

Started Oct 19, 2011 | Discussions thread
PenguinPhotoCo
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In reply to iGirl, Oct 29, 2011

If you are forced, or interested in paying cash my approach has been this:"

my sales person get an hourly wage plus 5% of her sales (senir, family, baby, etc). Reason being she may have to come in for just one sale and the hourly wage won't pay teh gas, plus I want her to have an incentive to sell sell sell!

One of course has to factor that commission into the price of your products. Easy enough to do with packages and such.

I offered $50 off packages to seniors in the past and this year switched to free wallet based promo becuase that appeals to kids more than moms and kids decide where to go. Helps the bottom line a bit too. can't say it's working any better than the $50...may do a hybrid version next year, or one thing one place and something different in another and compare the results.

For sports leagues each want something different - some cash (so it's a percentage of the packages, 10%) some want advertising or sponsorship of a team, etc - harder to guage a percentage that way.

What I've not been able to come up with is a way to pay marketing folks -go sign up a league and I'll pay you...flat money or a percentage of the sales I get from the league or something per kid in the league? It takes about the same time to sign any league, but some are 40 kids and some are 400. Some spend $20/kid and some $50/kid. A wrestling league of 40 kids paid at even 10% won't be much money but paying that on a 400 kid league will cost me dearly. Thinking of perhaps 20c a kid with a $50 min or something like that. If I can get it figured out so it's got enough incentive but won't bankrupt me then I'll send them off in serach of churches and schools.
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