Who should pay to advertise?

amother

Olive

Mon, Mar 14 2016, 9:35 pm

I am starting to sell a product in my house for the manufacturer. I am only getting a percentage of what is sold.
I don't have to lay any money out.
My question is who should pay for advertising.
I did advertise but the turn out was so low that I lost money because the ad was not cheap.

TwinsMommy

Mon, Mar 14 2016, 10:42 pm

I've been doing that since 2000 and though I decide to pay for advertising from time to time, I usually use free methods--- make sure you're trained well by your company in the free but effective methods they recommend. When I DO pay for advertising it's a percentage of the profit I take which is a percentage of my income (I break down my income for that biz by percentages).

YOU are in charge of advertising for that type of setup for the clients coming directly to you. My company has tv ads, etc, but they don't route traffic DIRECTLY to me (except via a zip code locator on the company website which is cool). If you're not in direct sales or network marketing and let's say you're this company's ONLY retailer (doubt it)--- I STILL feel like you'd be in charge of routing traffic direct to you. Having said that, go heavy on free but effective before spending.

TwinsMommy

Mon, Mar 14 2016, 10:43 pm

AND--- make sure you're taking advertising expenses as a tax deduction--- if you're a sole prop you'll work that out via sch C--- I assume the company 1099's you commissions and advertising can help offset income a teeny bit (as can other expenses)

amother

Olive

Tue, Mar 15 2016, 11:23 am

Also another question,

The person wants me to move all my things and rearrange my room and paint and fix up the area to look nicer and newer and throw out my belongings. That is all fine and good but I dont have the money to do it and they are very demanding that it gets done when they want it to get done.
Also they are telling me when I should be open when it is not convient for me.
They are not giving me a salary but just a percentage of what comes in.

Does this seem fair to you?

FranticFrummie

Tue, Mar 15 2016, 11:27 am

This seems like an awful lot of fuss for you. Are you sure this is what you want to do, and do you think it will pay off in the long run?

If you think it's worth it, maybe you can apply for an interest free loan from your community, or a small business loan from your chamber of commerce.

amother

Olive

Tue, Mar 15 2016, 12:24 pm

FranticFrummie wrote:

Thank you for validating my feelings. I dont mind working but I feel I am working for someone really hard and not getting anything to show for it.

Probably it might be worth it in the end but the aggravation to keep up to this persons standards might not be what I am looking for for the amount they are giving me.

FranticFrummie

Tue, Mar 15 2016, 12:38 pm

These kinds of arrangements are very complicated, because they encroach on your private life. It's not like an office you can leave every day, and then go home. You need to draw up a list of pros and cons, and be realistic with yourself. Money is hard to come by, and at first a job can look great, but you need to see the big picture, and ask yourself if this will be a good fit for you or not.

amother

Olive

Tue, Mar 15 2016, 1:05 pm

FranticFrummie wrote:

Thank you thank you. You really made me feel very good. Yes if it was my own items I am selling and I bought them it is one thing and I could fix up my house any way I see fit but they are very demanding and want things done when they want it done and to rearrage my lifestyle for their products.
I do have another job and they want me to stop that job in the middle of the day and do what they want but I am working and they know it.
Yes maybe in the long run this will be good but I dont think I could work for these people like they want me to.