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How To Charge?

by BGarcia
6 replies
Hello Warriors -

I have a business contact who owns her own travel agency. I'd like to set her up with a landing page to get some leads. I'd like to do some Facebook advertising, and try to get her some local traffic.

I would like to initially create the page for free, since I am a Web Designer it wouldn't take all that long.

I would like to charge a percent on the sales that it could generate. My issue is I am not sure how I can charge a percent if I am unsure of how much the transaction was for. I would be able to view the leads that come in, but after that I'm in the dark.

How would you go about this? How would you charge? I don't want to scare her away with an up front fee. This is a way for me to learn more about IM as well.
#charge
  • Profile picture of the author MarksWineClub
    I wouldn't make the bookeeping that complicated.

    If it's really a friend, or a business contact you've had for a while and assuming that you'll make the friend a decent deal compared to a stranger off the street, you should be able to have a real conversation about the profits and total revenue associated with their average lead.

    Just come to an agreement what a conversion is worth and how to track it-

    Extra accounting lines etc, won't work for most small business-
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  • Profile picture of the author Alex Blades
    Ultimately, you would have to take her word for it. You can track clicks, and phones calls, but unless people are booking trips on the actual sites, it's hard to know how many sales she makes.

    Your best bet would be to rent her the lead page, on a monthly basis, and if she feels she is not making sales from it, rent to another travel agent.
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  • Profile picture of the author BGarcia
    Thank you! Would it be rude to ask what her average sale cost would be? Then I could determine a proper conversion rate.
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    • Profile picture of the author Alex Blades
      Originally Posted by BGarcia View Post

      Thank you! Would it be rude to ask what her average sale cost would be? Then I could determine a proper conversion rate.
      I'm going to start calling you The Polite Marketer

      I don't think it's rude, it's part of doing business. You have to keep in mind, she has expenses, it's not all profit. I don't think she will let you look at her books, but maybe you should ask her how much a lead is worth to her, and go from there.

      If I were you, I'd charge her a flat rate since you are paying for traffic. That way you know what you will be spending on traffic, and how much you will be making. You can't be afraid to "scare away" a client. Some small business owners are cheap, and will tell you they only have $100 to spend on a website, seo, advertising and everything in between. Set your price, and if they don't want to pay it, move on to the next client.
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      " I knew that if I failed, I wouldn't regret that.
      But I knew the one thing I might regret is not ever having tried. "

      ~ Jeff Bezos

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    • Profile picture of the author professorrosado
      Originally Posted by BGarcia View Post

      Thank you! Would it be rude to ask what her average sale cost would be? Then I could determine a proper conversion rate.
      Hi BGarcia - I am a Travel Agent. The animal you're looking for does not exist!

      #1 - Each client is a different ball of wax. One client can mean $25 or $96,000+ if they're bringing in a large group!

      #2 - It's illegal for her to pay you commissions on travel and for you to collect commissions on travel. You can only get a marketing fee or computer / Internet services fee. She cannot show in her books that you are getting commission!

      #3 - What Blades suggest is the best way for both of you to deal with this. If you're doing a one shot service then charge one shot. If you are providing a management service (site upkeep and management) then charge a monthly fee.

      #4 - Someone else here on the forum sells calls to their client. So they set up a call center, landing page and refer the calls direct to the client and charge the client per call (after 45secs = real contact).

      #5 - If you want commissions from Travel, then become a travel agent. You could become their sub-agent and then you can do it yourself and earn "real" commissions!
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  • Profile picture of the author James Druman
    I would take this to the Offline Marketing subforum - that's where the big buys in small biz lead generation hang out!

    My advice, don't accept a commission deal unless you 100% trust her to be truthful (assuming you're emotionally attached to it working). Peeking over her shoulder can offer peace of mind, but if you feel you've got to do that, things are probably going to fall apart in the end anyways.

    If someone tries to cheat your cut, it's because they resent you and undervalue what you're doing - not necessarily because of anything you're doing wrong but just because that's simple human nature. Read 48 Laws of Power by Robert Greene if you want more insight on this.

    That's not to say everyone is like that. But it can be difficult to decide and accurately predict who is and who is not...

    And my main point is that if she has that type of nature, well-concealed or not, she'll find a way to cut you out eventually if she can't minimize your commissions. And working with her will be such a pain that it won't be worth preserving the money.

    Does this mean you shouldn't do it? Not necessarily. It can be a good way to get your start, gain some experience, and build up a history of results. And improve your confidence!

    But if you want to jump into a commission deal, I advise only doing it with someone whose integrity you're quite sure of and accept the fact that no matter what precautions you take you'll be standing on shaky ground. Be willing to move forward with the understanding that you may get nothing out of it but the experience, and hopefully a great testimonial or case study.
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