I read the blog and in my opinion the contributor may not be thinking right and the method will not maximize revenue and could damage overall revenue from other sites.
By taking the aggregate price from other sites to find a median selling price is a good approach to start with, but
why then go on to cut that price, this will devalue the contributors product and lose them potential good revenue?
Using a median price will mean that the buyer could find the image for a few cents different at other sites but only slight differences, but if the contributors reduces their prices because of higher commission and buyers find that they can get the contributors images much cheaper at CC, yes they may purchase them from CC giving the contributor short term gains, but this overall dilutes the contributors revenue pool, by transfering the contributors sales from the bigger sites to the smaller ones puts pressure on the larger sites which will lead to commission cuts later, so could in the longer term damage the contributors overall revenue and make it harder to trade.
I would suggest one of two options, first do the different site calculation and price at the median price, sales will be slower but the return greater when you have a payout, the second is to look at how other contributors are pricing on CC and calculate the 'CC median price' and use this for your images at CC which will fit with the websites pricing structure and what the buyers will come to expect and not undercut the contributors images on other sites or fellow artisits images.
I have not looked at CutCaster do they suggest prices based on image sales, they should have enough sales data now to help guide contributor to price for the website's 'customers price range' and be suggesting price points to maximise potential.
David (just some logical thoughts, maybe 'BS' but maybe not)
