Questions

We're just about to release a new SAAS product for professional psychologists. We will handle U.S. Sales directly, but we've been approached by a credible network of international re-sellers that already sell other products to psychologists and medical professionals in 40 Countries. They would actively promote our web service, attend professional local conferences, and provide Clinical and Technical support to their customers in the native languages required. However, they want 30% of initial and ongoing subscriptions for as long as they are supporting the customer. This was higher than we anticipated, but they would "jump start" our sales internationally, and do not require an exclusive. Do you think 30% is too high, or is that percentage warranted under these circumstances?

From everything I've seen, 20-35% is definitely the sweet spot. It certainly depends on the price point and some people start lower but build in incentive criteria to bump the percentage up after a certain milestones have been met.


Answered 8 years ago

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