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Subject: Commissions are based on gross profit not gross revenue.

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07/17/2009 12:07 PM	Quote Reply
The 20% commissions paid to Marketing Valet consultants are based on the gross profit of their projects. We define this as the gross revenue (total value of the project) minus third-party expenses such as printing, postage, creative licenses, and other professional services that are expensed against the project. We do not deduct any costs of labor performed by Marketing Valet. In most cases, the gross profit is identical or nearly the same as gross revenue, because we have very few third-party expenses (all our labor is performed in-house). We exclude third-party costs like printing and postage from the commission calculation, because this is pass-through revenue that does not end up in Marketing Valet coffers. Therefore there would be nothing to pay consultant commissions with. However, in the event we mark up third-party services, which we do frequently, the consultant gets a commission on this amount.

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