Sliding Scale for Commissions

[Elizabeth Ann West]

I have a question about the commission taken by C-C when we sell our articles.

I was wondering if there has been any thought to a sliding commission. For example, on articles less than $75 it is 35%, on articles up to $200 it is 25% and over $200 it is like 15%?

I only ask because I would think this would be an easier way to handle the proposed discount to bulk orderers (constant mentioned this in my loyalty to C-C post). It would force customers if they really want a bulk discount, then the articles must be bundled in bulk, saving time for ED and transaction resources for C-C.

Also, the sliding scale would probably help stop the race to the bottom in pricing. Maybe not in the amount I have listed above, but just a difference of 35% for articles less than $39 over 30% for articles $40 and up would probably make a whole bunch of articles at least sell for $40.

I don't profess to know all the business workings of the site, I have no idea how much storage on the server of our articles costs, or how much in advertising it costs, etc. Obviously, if it takes 35% of our articles to run the site and keep the runners of the site fed and well, then so be it. I would just think that if the base price of articles rose, eventually you would get more money because it is only a savings right on the cusp amounts, and I really think pricing articles higher just takes confidence. I know for me, as I wrote articles and priced them higher and higher and they sold, I felt more confident writing another article and pricing it higher.

[Celeste Stewart]

As someone who writes in bulk, I love that idea!

I really don't mind the CC cut because it benefits us all with new customers, assured payments, etc... but I do know it hurts us too because some writers are bothered by the percentage and end up circumventing CC (and taking customers with them) in an effort to earn more money.

What I'd rather see is the 5% kickback to affliates disappear or have a cap - once the referrer earns say $250 off a writer, that's it, then the writer gets a 5% raise. For example, someone, somewhere is earning big bucks off of me simply because I clicked a random link on the Internet when searching for writing opportunities. This person has never guided me or helped me in any way. It's not like a mentor-mentee relationship. I have no idea who they are. I'm grateful I found CC but there are thousands of links out there, I would have found CC regardless.

I have had two fairly successful writers (both personal friends that I did mentor) come in under my affiliate link, and while they have earned nice incomes, it hasn't profoundly affected my own.

[Elizabeth Ann West]

Not only that, but I was under the impression the affiliate program was suspended. Meaning, if I bring someone in right now, and believe me I talk about my writing on C-C to all of my friends and family, I am not eligible to receive any kind of kick back.

It's just very hard to swallow that one transaction at $100 costs the writer effectively $35, and 5 transactions of $20 articles cost the same. Yet, Ed would have to edit over 125% more articles, and each article would take up more room than if they are bundled together (each little article would take room up by having to keep statistics on it, such as title, licenses, etc.).

I'm not asking C-C cut back to the point that they have problems, but if quality articles at a quality price is what they truly are after, I think the fact that the average public request is in the $10-$20 range for 500-1000 words (sometimes even more, shockingly enough), should say something. I can't really blame requesters either, when you look at the articles page and the majority of articles are selling for $30 or less for full rights (of which I wholeheartedly say I share some blame, but it's what sells).

Okay, stepping off the soap box. Don't worry C-C, I won't try to unionize your writers or anything. LOL

Always Smiling,
Elizabeth West

[Celeste Stewart]

I've found that it's not really productive to worry about the CC cut. The price has to be paid one way or another. Removing or reducing it too much would effectively make the prices go down even lower. Then what? Writers are still making not that much and CC has less money to attract bigger customers.

Imagine if you have several writers bringing in $10,000 of sales each per month. CC gets $3500 per writer. That equals over $10,000 that they can use to bring in more customers for the rest of the gang, right? If they reduce the percentage for the bulk sales, that certainly would help the individual writers but it would hurt everyone else. So while I like the idea of a smaller commission for bulk sales as it would benefit me personally, I'd have to be against it for the sake of CC's continued good health.

[Cyndy Hardy]

For what it's worth, it's a two-way street. Just like we get article ideas from buyers, maybe CC gets ideas for recruiting buyers by reading articles.

Most of my article are high-priced -- not because I think I'm a better writer than anyone else here -- but because the price is comparable to what I'm getting in print. Posting them on CC gives me a chance to reach random markets. Or CC might have a lead on a buyer or market for them.

In addition to the other reasons I like CC, it's a potential added value for which I'm happy to pay the 35%.

[constant-content]

without going into details we are able to advertise on places like:
http://www.readwriteweb.com/

Which cost $3000 a month.

A place no one writer could afford to take a gamble on but 5000 writers.... now you can afford it.

The author affiliate program is still in place and bulk orders do not mean less work on eds part.

We listen to ideas from all of our writers but as of now, we couldn't afford to make this change and still grow the site. Maybe in the future when we are more established.

[audrabianca]

Have you thought about using a corporate approach, like a grassroots marketing campaign by just posting an explanation of this campaign on your site, and harnessing all the power of the writers to get the word out? This would be essentially cost-free for you, Constant, since you obviously do your own web development and writing code. Just a thought... I am always trying to think of new ways to improve the site. I think I can still make more.

[Celeste Stewart]

Yes, imagine Ed wading through pages and pages and pages and pages of just one bulk submission. I imagine that takes much more work than reading a few 500 word articles.

Fo anyone who is bothered by the CC cut, if it helps, consider what you want to earn from each submission. If you want to earn $65, then charge $100. Sure you have to be conscious of the markup but try to think of it in different terms.

For example, in a different business model, you'd have a product and price it at say $65 before offering it to a distributer. The distributer would mark it up however he pleased. The retailer would then buy the product from the distributer and mark it up further. In the end, the product could easily sell for $100 or more. (Usually lots more).

Same thing, different way of accomplishing that end. We get paid what we want and the people who get the product to the ultimate customer get their cut. We just have to factor in the markup at the beginning.

As long as you are getting what you feel is fair for your efforts, all is well.

[Cyndy Hardy]

Imagine 5,000 writers motivated by commissions for finding buyers. I'd rather see that than a commission for finding writers who will compete with me.

[constant-content]

I know many writers that would work direct with the buyer instead of telling them about CC...

The affiliate program didn't work because customers would sign up for the discount... Now with that said a smaller commission may work say the same 5% for every article sold.

[Cyndy Hardy]

Unfortunately, no system will be perfect. Some writers will inevitably cheat. Just like there is little we can do (or too much we must do) to prevent plagiarism on other sites.

I think most won't cheat because most people are honest. Also for the same reason most don't buy $3,000 marketing packages.

The 5% commission is perfect if it works the same way as for recruiting writers. If grouchy brings a buyer, grouchy should make 5% of whatever articles sell to that buyer. Maybe with a maximum threshold. With an expiration date on commissions, writers would be motivated to replenish their 'stable.'

[Ed]

Unfortunately, finding customers has nothing to do with being honest. It has everything to do with making money, however, and most people would work directly with a customer who wouldn't take a fee. We find the customers so the writers don't have to - so that they can do what they do best and concentrate on writing.

Ed

[Elizabeth Ann West]

I guess I was piqued by the response of constant to my loyal to C-C post, where he said it was in the works to give a discount for bulk writing. I was also thinking that if more articles were priced higher, even at a slightly lower percentage, C-C would make more money eventually, as would the writers willing to rise to the challenge so to speak.

I did say I didn't profess to know all the inner workings of running C-C. You're absolutely right Constant, I would never pay $3000 to advertise my writing. Then again, it wouldn't make sense anyway, because absolutely no way could I fulfill all the writing needs of those who would want writing assignments filled.

I think as a writer, I just noticed that slowly, I am pricing my work higher. It is difficult to see articles go for much lower than the guidelines when we submit, and not feel if that doesn't somehow hurt my chances at getting a fair buyer. Granted, I can't offer any empirical data to that, it's just a natural emotion you feel. And I am sure, no positive, there are probably some authors here who feel the exact same way about my pricing.

I only recommended the sliding scale because most places that sell on commissions utilize such a program. For example, auction houses take as much as 50% on items that sell for less than $20 in estate sales. I suppose the real answer, if the goal is to raise the pricing of articles sold, while offering a break to authors who regularly write large amounts of content that sells (face it, it's hard to see a $200 project sell, and know the author will only get $130, I mean it sounds so low...especially when you consider the taxes the author has to pay on that.... and then paypal takes a cut..) is two-fold. Raise the commission on the lower priced articles, and lower the commission on the higher priced articles. But, that might cause a revolt from the people who like pricing their articles less than $10.

Now may also NOT be the right time to do it either. But I think it fair to say that not all of the writing projects, especially the bigger bulk orders, or the weekly assignments, don't fit the current price mold. I would say as the site grows, it will definitely cause more problems. I understand what Celeste is saying, price what you want to earn, but it's not always so simple. If requesters are regularly only willing to pay $10-20 for 700 words, full rights, it's hard to price in the guidelines because at least 2 or 3 other writers are willing to price lower tog et the sale. Believe I know, I was one of those writers just a few weeks ago.

So yeah, throw my idea to the back pile, it was ONLY a suggestion. Like I said, I won't be unionizing the writers And, hopefully, if C-C will still have me, I will keep writing. Even with my radical ideas.... lol!

[Celeste Stewart]

That's what I like about you E., you're always willing to throw ideas out there.

As far as seeing a $200 project sell and knowing the writer only gets $130 -- I wouldn't feel too sorry for those poor struggling writers because I'm one of them and I can tell you that I'm completely okay with my take. Some $200 projects take less than 2 hours to complete. Others even less; some a tad bit more. It all evens out into a decent, professional wage - even after taxes/PayPal. In fact, because of self-employment taxes and other expenses such as PayPal, freelancers have to charge more than their corporate counterparts. Most businesses who hire freelancers and consultants understand this.

When you work with customers in bulk it gets easier because you eventually learn their business, the voice they prefer, and what they want. Not saying that all $200 projects are this easy; just saying don't feel too sorry for us. I'm willing to bet most of us are doing just fine...

Also, there will always be writers posting their work cheaper. Always. You're finding your confidence and you're doing well. That's the most important thing in my book. Try not to worry about the other guys if you can. It's hard, I know but you're growing and learning everyday and that's a good thing.