How to devise a sales referring Commission/Royalty program?

Question

Is there anyone who's familiar with commission/royalty program that pays the third party for introductions that lead to new customers.

If I were to receive 1% of the new sales as my commission/royalty, how do I know that I'm getting a full commission? Since I don't know the new sales amount. Thanks.

Answer 1

Always a good question! How we know if we get paid for our hard work on someone else's business?

The company's reputation is all you have to base your decision on. Are you thinking about on-line referrals? Or will it be some other system.

What we did with our system was to issue "discount codes" to our affiliates. When a customer is paying for their purchases we ask them if they have a discount code to redeem. The unique code will reduce the sales price and track our affiliate action precisely.

This is more work than using cookie based systems but more accurate in the long run. Plus, we can encourage affiliates to promote us in any situation knowing we'll be able to reward their hard work.

But, the bottom line is still whether you can trust us to honestly pay our commissions. That's the question you must satisfy in every situation.
Good luck.