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The Rising Costs of - will it end?

When first starting with we paid commission rates of around 12%.. a few years later the commission jumped to 15% - the introduction of the preffered partner program, basically forced us (and everyone) up to 18% - then after years of servicing the South African market, they introduced VAT at 15%, to suddenly become compliant with local legislation. We are a small establishment and not VAT registered, therefore we absorb the VAT directly. 

Right now, my base cost of transaction through is 20.7%. With such a low barrier to becoming a genius member, just about everyone is one, so thrown in an additional 5% (or more if you are genius generous).

Now there is this payment program.. for 2.1% additional commission.

So the base cost of transaction for us through is 27.8% - and there are talks of "tiered" genius programs coming soon.

With an unlimited on-boarding of new properties - making a tougher competitive place, forcing more specials and discounts - further increasing the cost of transacting through 

My experience is less than 7 years old. I have seen our costs of transaction soar from 12% to 27.8%

Can I expect that in the next 7 years, we are similarly going to have another 230% increase in rates?

The worst part is that then use this money, to pay google, to rank their platform above my little guest house in direct key word searches - using my own money, to out advertise me. - not very partner like. have been a trusted source of market for my business for years - but as a "partner", I can't help feel like I am being ... abused.

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BrookAve 2 years ago

Hi Daniel,

I can see you various points. I would suggest mitigating these % doscounts by simply imcreasing the rates. I have seen several other partnerson here basically stating the same as you and thats how they typically handle it.  

As for the google adwords thing, is reading way too much into it. There is no conspiracy. It simply is what it is.


Kind Regards