MicrostockGroup

Microstock Photography Forum - General => Selling Stock Direct => Topic started by: Freedom on April 02, 2013, 00:38

Title: What is considered a fair and reasonable % from Zazzle
Post by: Freedom on April 02, 2013, 00:38
Nobody has been talking much about Zazzle lately. I opened a store a few years ago and forgot about it. I am surprised that I have actually reached a payout with my pitiful small amount of products. Maybe I should give it more credits and have another try.

What should be considered a fair or reasonable percentage for a seller?
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: Poncke on April 02, 2013, 02:44
30%
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: Freedom on April 02, 2013, 13:24
Thanks, Poncke.

30% is not too bad for a contributor, since Zazzle will increase the price accordingly, will the buyers find the item too expensive?
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: fieldsphotos on April 02, 2013, 14:14
Good topic.   I have mine set at 15% so that my products are included in their promotions.  (They recently changed the rules so that if you have a % higher than 15, your products won't be included in some of their promotions)

Kind of low % stock-wise, but I see zazzle as a different model since you/they are selling physical goods (instead of licenses) 

It is a lot of effort to make products, but I feel its worth it.  I have made just over $320 since I started Jan 2012 which is better than I did at 123RF, Dreamstime, Fotolia and iStock for the same period (I have a small portfolio).   

Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: oboy on April 02, 2013, 14:17
If you set your royalty > 15% then your placement in the marketplace is dropping and Zazzle will not include your products in the collections for promotions. I keep my royalties around 25% (used to be the standard) and I still get a good amount of sales. The best categories are: wedding, baby, sport, graduations and most holidays. You can make also a good amount of money (15% referral per sale) by promoting not only your own products, but also products from other stores.
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: Poncke on April 02, 2013, 14:26
Nice, I didnt know that.

I have made about 35 dollar in 6 months. LOL. I just think 15% is theft. But it might be worth trying.

Just that 15% of a 2 dollar sticker is 30 cents. Not really going to make me rich.
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: Freedom on April 02, 2013, 15:27
Good topic.   I have mine set at 15% so that my products are included in their promotions.  (They recently changed the rules so that if you have a % higher than 15, your products won't be included in some of their promotions)

Kind of low % stock-wise, but I see zazzle as a different model since you/they are selling physical goods (instead of licenses) 

It is a lot of effort to make products, but I feel its worth it.  I have made just over $320 since I started Jan 2012 which is better than I did at 123RF, Dreamstime, Fotolia and iStock for the same period (I have a small portfolio).

Great to know, thanks for sharing this info! My heart!! :)
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: cathyslife on April 02, 2013, 15:35
Good topic.   I have mine set at 15% so that my products are included in their promotions.  (They recently changed the rules so that if you have a % higher than 15, your products won't be included in some of their promotions)

Kind of low % stock-wise, but I see zazzle as a different model since you/they are selling physical goods (instead of licenses) 

It is a lot of effort to make products, but I feel its worth it.  I have made just over $320 since I started Jan 2012 which is better than I did at 123RF, Dreamstime, Fotolia and iStock for the same period (I have a small portfolio).


This is the concwlusion i came to also. 15% seems low but you cant price yourself out of the market. I sell things regularly...i have been neglecting it and really should add more products.
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: Poncke on April 02, 2013, 15:53
Done
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: lbarn on April 02, 2013, 16:08
I also agree that 15% is too low.  At 15% a 3rd party sell with one of their sales, could yield the artist very little in return.

Since Zazzle has started the 15% or less for inclusion in their promotions and sales, I haven't noticed a downturn in my business card sales that are priced at 30%.  I did create some simpler cards for the 15% markup, but they don't seem to sell as well as the photo based business cards.

Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: fieldsphotos on April 02, 2013, 16:52
I haven't tried much experimentation with prices, but I have heard both arguments over in the Zazzle forums.   I agree that the referral % getting taken out does take a bite.   I do virtually zero promotion, so I think if you have a good promotion network it might work for you to be at higher %.

Some people choose the % based on the item.   For more expensive items like the computer sleeves, they choose a lower % and then pick a higher one for cheap stuff like stickers and cards where people are less likely to be price sensitive.   This seems like it might have promise, but it does take a lot of effort to do that since you can't use the global % change tools.


Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: oboy on April 02, 2013, 17:07
I also agree that 15% is too low.  At 15% a 3rd party sell with one of their sales, could yield the artist very little in return.

My understanding is that the 15% referral is NOT coming out of the artist royalty.
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: lbarn on April 02, 2013, 18:05
I don't actually know how they account for the referral %.  I do know that there can be vastly different sums paid on an item with the same dollar value when it is marked 3rd party.  Some say that is due to a sale on Zazzle's end where the customer buys enough things on a single purchase to get a discount, then Zazzle spreads the discount around.
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: oboy on April 02, 2013, 18:23
3rd party sales are usually very near my normal royalties, but it is defiantly not a 15% cut. So I think it maybe the volume bonuses or discounts that get subtracted.

I wish it would be more clear.
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: lbarn on April 02, 2013, 18:26
From Zazzles FAQ on royalties
http://www.zazzle.com/sell/designers/nameyourroyalty (http://www.zazzle.com/sell/designers/nameyourroyalty)

Example 1 Royalty set < 20%

On a t-shirt with site price of $13.75 and a 15% royalty markup, you would normally earn an (unadjusted) royalty of $2.06.

    $13.75 x .15 = $2.06 rounded to the nearest cent

In the case of a referred sale, 20% is backed out of the unadjusted royalty.

    20% x $2.06 = $0.41

By subtracting the referral fee from the unadjusted royalty rate, we can determine the adjusted royalty (the royalty amount you will be paid for this sale).

    $2.06 - $0.41 = $1.65

In this example, you give up 41 cents of royalty in order to acquire that sale. The 20% referral fee is only backed out of your royalty calculation when there is a cost associated with acquiring that particular order. It is important to remember that although your royalty is slightly reduced, without the referral there would not have been any order at all!


Unless you are talking about a different type of referral fee, this one appears to be paid by the artist.
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: oboy on April 02, 2013, 18:48
Thank you for the excellent example / link.
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: shiyali on April 02, 2013, 20:27
I have most of my stuff set at 20%. Seems to work ok.
Title: Re: What is considered a fair and reasonable % from Zazzle
Post by: Freedom on April 02, 2013, 23:46
For whatever reason, my earning went up $0.10 since this afternoon. What could that be?