Post
by butte » Sun Mar 31, 2013 5:31 am
Ideally, a percentage commission should be on purchase SUBtotal exclusive of ALL of shipping (which may be taxable or untaxable), handling fees (ditto), and tax(es), alike, in one stroke (with the probable exception of VAT unless it can be "reverse engineered" for the purpose of calculating commissions). An alternative fixed (value rather than rate) commission would avoid the problem. That in turn is something to consider, since just as realtors everywhere enjoy percentage commissions which they may not "earn" and some realtors offer accordingly fixed value commissions, the actual work that goes into a commission often doesn't have much to do (hourly or otherwise) with the prices, and the usual justification is that they contributed to or rarely even filled the bucket. In another industry where hush-hush is a rule and salaries often beg the mind to wonder, what, pray tell, do banks or card transaction processors actually do (measured in equipment, utility bills, human time, electrons commanded to and fro, whatever) that is in any sensible manner worth more money for processing a golf ball or box of crackers than for processing a case of rare caviar or a brand new Bentley, or is in any event worth more than a flat dime, let alone when the program authors don't see any of it, and let alone when the nightly float of pooled monies already provides income with fairly many zeroes and commas in it? Most of us have long since noticed that waitresses tend to be uppity if not tipped for taxes, and actually don't do much more for an expensive meal than for a modest one except in the finest restaurants; nifty charade, except when they overdo it and net a literal two-cents-worth that transaction processors and banks have clout to outmaneuver. Ordinary affiliates accruing ordinary commissions are not unreasonable to suppose may often, even more often than not, warrant not percentage rates but fixed fees, notwithstanding that moreover in some jurisdictions (globally) there may well apply a formal distinction between even mandatorily severable sales and income taxes. And that is an entirely reasonable development matter to consider.