Renting a shop by commission

[Dana Enyo]

I'm a small, independent clothing creator.  When I started out I rented a couple of shops by the week and it was killing me.  The urban sim had lots of empty storefronts so I offered the sim owner to split all sales 50/50.  She accepted and I've had that shop for two years. 

Since then, 50/50 is the only way I rent shops, and I think if it was a lot more common SL would have far fewer dead downtown streets. Marketplace is really convenient, but it wipes out SL downtowns just like Amazon does in RL.

Even though I make less than an MP sale, it's a lot more interesting contributing to the inworld environment. And since my success benefits the sim owner, they have incentive to help advertise the shop.

What does this group think?

[Wulfie Reanimator]

I like doing commission splits in general.

While I don't have an in-world store (got several MP stores though), most of of the products I've worked on have been done with no upfront payment, just the commission split. That way my clients don't have to pay a huge rate and risk losing money, and I'm incentivized to "do it right" so the product sells better.

If a sim owner is renting space and nobody's coming, allowing a store to set up for a commission split is a no-brainer. At least they'll make something, maybe even more than the original rent.

Edited June 29, 2023 by Wulfie Reanimator

[Rockridge Constantine]

I have some shop space on my Rockridge Heights region and offer promotion in various groups and include free listing in search.  Contact me inworld Rockridge Constantine. 

[Dana Enyo]

23 minutes ago, Rockridge Constantine said:

I have some shop space on my Rockridge Heights region and offer promotion in various groups and include free listing in search.  Contact me inworld Rockridge Constantine. 

I'll come take a look!  Thanks!

[Polenth Yue]

A friend asked me to set up a shop in a room hidden by a secret door. I sold more from that shop than any mall, which is why I don't do malls. The commission idea means a lower risk, but it doesn't suddenly make those places work. I had that sort of deal in one mall, but I was maintaining the shop for nothing much back. In the end, focusing on my main shop and events was a better strategy. I'm also still happy to set up shops for friends, especially if they're behind secret doors.

[Dana Enyo]

8 hours ago, Polenth Yue said:

A friend asked me to set up a shop in a room hidden by a secret door. I sold more from that shop than any mall, which is why I don't do malls. The commission idea means a lower risk, but it doesn't suddenly make those places work. I had that sort of deal in one mall, but I was maintaining the shop for nothing much back. In the end, focusing on my main shop and events was a better strategy. I'm also still happy to set up shops for friends, especially if they're behind secret doors.

Thank you Polenth!  The commission model certainly doesn't guarantee you'll sell stuff from the shop. (Alhough the inworld presence might help MP sales too; hard to know.

[Katherine Heartsong]

100% agree. In the past I've owned a nicely set up 1/4 sim with shops (urban 1940s style from Schultz) and the best way to attract indie and smaller retailers who still had quality goods was a simple split on commission. It lead to a vibrant little shopping district where foot traffic helped everyone succeed, my gallery as a larger anchor at one end, and it just felt nice to visit and browse. I really need to set that up again.

PS. My current large warehouse gallery also has space for guest artists on the wall, with the same idea. I take a very small % of a sale and they get exposure in a larger, well-visited gallery.

Edited June 30, 2023 by Katherine Heartsong

[Dana Enyo]

6 minutes ago, Katherine Heartsong said:

100% agree. In the past I've owned a nicely set up 1/4 sim with shops (urban 1940s style from Schultz) and the best way to attract indie and smaller retailers who still had quality goods was a simple split on commission. It lead to a vibrant little shopping district where foot traffic helped everyone succeed, my gallery as a larger anchor at one end, and it just felt nice to visit and browse. I really need to set that up again.

PS. My current large warehouse gallery also has space for guest artists on the wall, with the same idea. I take a very small % of a sale and they get exposure in a larger, well-visited gallery.

WHY don't more sim owners offer this option?  It's a very simple matter for the merchant to set the vendors to split the payment.  Having more interesting storefronts just seems like a big win for everyone.

[Wulfie Reanimator]

1 hour ago, Dana Enyo said:

WHY don't more sim owners offer this option?  It's a very simple matter for the merchant to set the vendors to split the payment.  Having more interesting storefronts just seems like a big win for everyone.

Even if they get the idea, trading steady rent fees for a fluctuating payments from a store is a gamble, unless you already know the store does well.

"If your store makes enough money, why can't you just pay the rent like everybody else?" - renter, probably

It only becomes a more favorable gamble if the renter is struggling to find tenants to begin with.

Edited June 30, 2023 by Wulfie Reanimator

[Dana Enyo]

37 minutes ago, Wulfie Reanimator said:

Even if they get the idea, trading steady rent fees for a fluctuating payments from a store is a gamble, unless you already know the store does well.

"If your store makes enough money, why can't you just pay the rent like everybody else?" - renter, probably

It only becomes a more favorable gamble if the renter is struggling to find tenants to begin with.

You're exactly right.  But when there's 20 empty storefronts earning zip, seems to me another option might be worth trying.  And I see that all over the place.  I guess to me it's a viscous circle:  more full shops> more interesting place> more avs come> shops do better> everyone makes more $ and has a better experience> cycle back to step one!

Edited June 30, 2023 by Dana Enyo

[Katherine Heartsong]

9 hours ago, Wulfie Reanimator said:

Even if they get the idea, trading steady rent fees for a fluctuating payments from a store is a gamble, unless you already know the store does well.

This is true. In my case, I'm paying for the sim/parcel anyway, not fully using it, so I might as well offer it for use if I can.