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Re: AM: Ad/Store rates

To:     ad-market@netpreneur.org
Subject:     Re: AM: Ad/Store rates
From:     David Smith <dasmith@ziplink.net>
Date:     Mon, 01 Jun 1998 19:42:29 -0400
Organization:     Claritas, Inc.
References:     <bebdfc94.3572a3ee@aol.com>
Reply-To:     dasmith@ziplink.net

> 
> 1. One vendor I have asked to be in the store is willing to give me all their
> graphics and goodies for the storefront and in return, VA will get 12% of each
> sale.  Since the site is new (well, not even live yet) we will also get the
> extra benefit of having their good name on our site.  Intially, if vendors
> have the material to give VA then I see only asking for a small set up charge
> for time.   But, if  VA has to do all the set up and design for another
> vendor, then I will charge and have a fee for that based on design &
> programming.
> 
> So far it seems easy.  But, would you suggest a monthly leasing fee as well?
> What about the first vendors who are willing to risk with me?  Initially, I
> was going to charge $500 per month to lease the space but am beginning to
> think that maybe for now the commission on sales should suffice.  Thoughts?
> 

At first, you may want to consider dropping the leasing fee. Since the
'location' that you are leasing doesn't have any value yet. But if you
were planning to have big launch for the site then it may be valuable to
them to be associated with your site and you could get away with the
lease fee. 

I wouldn't totally drop the fee totally though, I would continue to let
them know that you are just waiving the fee for the first 3 or 6 months.
After the site is starting to generate some business, any new vendors
would be charged the fee and you would let your existing vendors know
the trial period is ending. 


David Smith
claritas.com

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