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

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Subject: Re: [Leica] a photo business question
From: "Francesco" <fls@san.rr.com>
Date: Thu, 10 Jun 1999 19:55:17 -0700

I think you are right.......my partner is the one who suggested the
excessive fees.
I myself opt for a one-time setup fee around $150-$200 and commissions on
sales, with no minimum monthly fee.  Any more opinions on the LUG?

Francesco


- ----- Original Message -----
From: Nathan Wajsman <nathan.wajsman@euronet.be>
To: <leica-users@mejac.palo-alto.ca.us>
Sent: Thursday, June 10, 1999 2:50 PM
Subject: Re: [Leica] a photo business question


> 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/
>
>
>