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Thread: NET or GROSS % of Commission

  1. #1
    Qui Gon Jinn
    Guest


    Within the commission % offered by each merchant, I don't believe we are properly informed on whether we receive commission on the NET value or GROSS value of a product sale.

    NET meaning if a product is sold for £100, you only reiceive commission on the non-vateable element.

    i.e. £100 divided by 1.175 ( accounting for VAT) = £85.11
    Hence, you only receive commission on the £85.11 NOT the £100.

    GROSS meaning we receive % commission of the full £100

    Question:

    Should we be informed within a merchants commission details if we are receiving NET or GROSS.

  2. #2
    supercod
    Guest

    I think if any merchant is paying gross then they should be letting us know as that makes them a plus in my books, however it's totally understandable if a merchant is not wanting to pay commission on the vat portion of the sale.

    So what really saying here is that maybe we need a standard percentage system across all the networks, as it's not just CJ merchants I know many others on other networks that pay on net or gross. The merchants on gross are the ones that lose out because it's not clear you make more with them.

  3. #3
    Qui Gon Jinn
    Guest

    Trying to extend this further.....or rather explain the angle where I am coming from with regard to this recent burst of polls.

    Currently it's not clear if your in receipt of gross or net..the additional consideration to factor in is the exchange rate...which in this instance is purely hypothesing....and illustrates how all these differentials..rollover and mount up...hence this does not bare a true reflection of the rewards we should be receiving.

    Here comes the maths...

    Product costs £1000 Commission at 10% = £100 in it's purist sense.

    Exchange rate is £1 = $1.65, thus commission is $165

    but, working on an assumption we might receive a rate of £1 = $1.45, reduces the commission to $145.

    However if you actually only get paid on net product value, not gross. Thus, divide by 1.175 finally gives you approx $123.40.

    When compared to $165, which you should have got... equates to an actual shortfall of $41.60. Basically, your losing about 25% of the commission you thought you would receive.

    * Please note these is a purely hypertehetical example. We are not trying to scare monger, but requesting that affiliates are properly informed of the deal they are receiving across "all networks".

    Additional factors to these are chargebacks, information which is not available to us anymore and is instead disguised / veiled in allegory as part of the EPC.

    And then the "Action Referral Occurrence", which is a bone of contention as affiliates perception of what a cookie meant and was led to believe in the T & C's of contract were mis-construed for a number of years.

    All this is paramount for when an affiliate is considering an advertiser for inclusion within publishers website.

    Apart from getting on my soapbox, I think CJ UK and the team are pretty FAB.





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