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How Much In Profits Does A Supplement Company Take For Each Sale? (9)

07-14-2014 11:52 PM #1 es351045 (Member)
How Much In Profits Does A Supplement Company Take For Each Sale?

Let's say you're going to work with a supplement company where they take care of fulfillment and everything else. What would be their expected take in % for the sale of each unit?

07-15-2014 12:10 AM #2 panthary (Member)

Varies, are these straight sales, rebills? Are you running retail or direct response? What niche are the supplements in? Diet, Muscle etc

07-15-2014 08:34 PM #3 es351045 (Member)

Quote Originally Posted by panthary View Post
Varies, are these straight sales, rebills? Are you running retail or direct response? What niche are the supplements in? Diet, Muscle etc
Diet niche. It would probably be a straight sale but I'm interested in knowing how the deal would differ if I was running a rebill instead.

This is hypothetical situation as I look for a partner. I was wondering if a 50/50 split would be a good percentage for both the marketer and the supplement company who handles fulfillment and customer service.

07-15-2014 08:53 PM #4 adrien23 (Member)

Quote Originally Posted by es351045 View Post
Diet niche. It would probably be a straight sale but I'm interested in knowing how the deal would differ if I was running a rebill instead.

This is hypothetical situation as I look for a partner. I was wondering if a 50/50 split would be a good percentage for both the marketer and the supplement company who handles fulfillment and customer service.
If you're processing yourself there is no percentage. Whether you run trials or SS you'll pay the same manufacturing and fulfillment fees (depending on volume).

Now if you're looking for a company that does everything including processing, support, customer retention, etc, then you get paid based on the CPA they're willing to offer you with little bargaining room unless you run volume.

07-16-2014 08:08 PM #5 testosterone (Member)

We have about 25% of the hard costs.

So 75% of overall is profit.

There are many companies out there making much more profit, but they have shitty product. I want to sell stuff that works.

07-16-2014 08:09 PM #6 testosterone (Member)

And yes - 50-50 is the usual split, however I for example, deal only with super affiliates and want to give them an offer-owner-like experience, so my guys get 90% of the profit. I do split testing, fulfillment, everything for them so they are extremely loyal and fair with me. Plus I kick guys who are not good very easily out of the program, so everyone wants to keep on profiting.

09-24-2014 03:35 PM #7 es351045 (Member)

Quote Originally Posted by adrien23 View Post
If you're processing yourself there is no percentage. Whether you run trials or SS you'll pay the same manufacturing and fulfillment fees (depending on volume).

Now if you're looking for a company that does everything including processing, support, customer retention, etc, then you get paid based on the CPA they're willing to offer you with little bargaining room unless you run volume.
I have so many questions...

#1: Ok, so if I have someone else do manufacturing and fulfillment and we do a 50/50 rev share, what dollar amount of revenue can I personally expect to take in both for a SS and a FT for each unit sold?

#2: I have someone who says they can manufacture a bottle for $11. How does this compare to the usual cost a manufacture would charge?

#3: If the company also does fulfillment, what is a fair amount for them to charge per order?

09-24-2014 04:10 PM #8 iAmAttila (Veteran Member)

I got a quite from one and it was like 5 or 6 bucks plus shippinh for a product being sold for 79.99 plus s/h

09-24-2014 05:18 PM #9 mark_from_michigan (Member)

With decent volume, a 60 count, bottled, labeled with cotton and safety seal should run around $4-5/bottle.

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