Just trying to get my head round this.
So normally commission is paid to a third party who sells your product.
So why do direct sales even have commission in the first place? Seems like a fancy word for fat profit margin. You dont pay yourself commission.
its not even profit margin... more additional profit margin. So on a hotel for a week say costs £3000 All inclusvie. about 7-15% of that ( depending on the supplier ) would be commission. IF you booked that product direct then you would pay £3000... however there is anything up to £450 commission on that. Me as an agent for that supplier if there was £450 commision on that would sell that to you with say £250 discount on it. the buisness I work for then would get £200 profit out of that and you would get the product for £250 cheaper that what it would be to book direct.
BUT its get even more complicated that that.
So say a Cruise holiday. il take on particular cruise for example .
Norwegian Star on the 4th of January from Buenos Aires
If you wanted a BA Grade Balcony Cabin ( this would be a mid ship balcony cabin ) the cost to you from Norwegian Cruise line would be £2619 per person. Now a normal agent would then be able to sell that to you for about £2450 per person.. ( or there abouts )
However because we sell a lot of cruises to Norwegian Cruise line we get a completely different rate that isnt available to other agents... so that same cabin I could sell to you at £2125 per person. That is £988 total less that what you can buy it from Norwegian Cruise line directly.