paymentI am thinking of a service that is going to get profit from commissions of transactions.
Are there common rules that I can base the size of the commission? Should I make it lower than competitors? What if there are no one-to-one competitors?
What are the factors I should count?
I think I can test it when the service goes live, but I am not sure I will be able to easily slide the commission up and down with no reason and explanation to users.
Please advise.
Your question is much too broad, because you haven’t explained what it is you’ll be selling to receive a commission on. The commission is going to vary depending on the product or service that’s being sold. If it’s a low-margin product/service then the commission can’t be very much, which only makes sense. In other words, if the gross profit on the product/service is only 5%, you can’t ask for a huge commission.
I don’t know if there are “industry standards” for commissions, but I would suggest that you look at other companies already selling whatever it is you’re going to be involved with and find out what commissions they pay to sellers of their products/services. That will give you a good idea where to start.
I’ll say this – whether your commission is higher or lower than your competitors doesn’t really matter if you can’t provide good enough service to justify it. Many people will pay more for better service, so don’t always focus on cost as an issue. If you want to use higher commissions than everyone else, that’s fine. Just make sure people know what value they’re getting for the increased price.
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