Archived posting to the Leica Users Group, 1999/06/10

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Subject: Re: [Leica] a photo business question
From: Nathan Wajsman <nathan.wajsman@euronet.be>
Date: Thu, 10 Jun 1999 23:50:25 +0200

Francesco,

I think that your fixed fees are excessive. I would find it hard to justify
paying $50/month for bandwidth costs, knowing how cheap Internet access and
bandwidth is in the US. Also the one-time fee seems a bit high. You state
yourself that you are targeting amateurs; given that, how likely is it that any
one client of yours would actually generate enough sales to justify these fees
PLUS the commission. If I were you I would go for a commission-only scheme,
perhaps with a modest monthly fee to weed out inactive clients.

Nathan

Francesco wrote:

> I am considering the following scenario:
> ONE TIME setup fee of $250 (covers all scans, web page setup, e-commerce,
> etc.)
> MONTHLY bandwidth fee of $50, to cover web traffic costs and bandwidth
> upgrades,
> as the site grows (not profit for the company......this just pays bills).
> COMMISSIONS on gross sales from 10% to 35%, depending upon volume
> (this is where the company makes money).  For example, if a photographer
> sells
> $1000 worth of images on our site, we take 35%.  If sales break $2,500, our
> commission drops to 25%, and so on.
>
> My question to LUGGERS, does this sound fair and reasonable?  Do you think
> I am crazy to want 35% of gross income for the services I offer, or does
> this sound
> quite cheap for the work and services we will be providing?  Let me know
> what
> you think of this idea and my proposed pricing.  Remember, we are targeting
> the
> amateur glamour/nude photographer, not established professional
> photographers
> who have already made money with their adult images.
>
> Thaks for any insight you can offer......
> Francesco
> fls@san.rr.com

- --
Nathan Wajsman
Overijse, Belgium

General photo site: http://members.tripod.com/belgiangator/
Belgium photo site: http://members.xoom.com/wajsman/
Motorcycle site: http://www.geocities.com/MotorCity/Downs/1704/