Letter: Who's Working for Whom?
Yes, it's been said brokers are compensated by the list owner, but I would like to put something else out there. In a typical situation, list owners retain 70 percent of the base price of their list with 30 percent commission kept by the list manager, 20 percent of which is passed on to the broker of the transaction.
As a matter of fact, our earlier contracts with list management clients were structured this way, albeit not to address this issue. Structure it this way, and can't it be said we are working for the list manager?
And Mr. Weissman's suggestions on accounts receivable are absolutely bizarre. He has to be living in a fantasy world.
Chris Ragusa, President, Estee Marketing Group Inc., New Rochelle, NY