Percentage of revenue from subscriptions?

I'm looking to host some subscription sites for other companies. I'll be providing the infrastructure, bandwidth, etc. and in exchange I'd like to get a percentage of what they charge their subscribers.

I could run everything through a common PayPal account, but there I run the risk of one bad apple spoiling it for everyone. So I'd like to minimize the risk of fraudulent purchases, chargebacks, illegal content, etc. by having the businesses use their own PayPal (or other) payment method. Is there a way I can craft links or something else such that I'll be credited with a percentage of the sales automagically?

One thing I know I can do is use PayPal's Instant Payment Notification (I'd be using it anyway) and tabulate the number of sales during the month, then bill the business for the percentage. There's the risk that they might jump ship and not pay, but if they're doing well and it's fully automated then the likelihood is that they'd pay and keep using the service.

Any suggestions? Things I haven't considered or that I've overlooked?

 

Well, as you're providing everything they need for the sites, I don't think they could easily jump ship. If they did, you should make sure you have a list of the members to email them and ask them to start Paypal Complaints.

Paypal doesn't have a percentage function, but you could open 2 ClickBank accounts, have one belonging to the business (accepting Paypal and Credit Cards), and make one for yourself as an 'affiliate' of the products offered. You will then be able to set the affiliate percentage, and get 5-75% of the sale if the users pay via your link. This is more reliable, but more effort and alot more costly (ClickBank is expensive).

 

Of course... as long as they stay signed up, they don't have access to the member database. Emailing the members can be done through an interface. If they do want to move, they pay up and get the full member info at that time.

Also, what do you think is a fair percentage? I'd want no less than 10% (probably plus a minimum monthly service fee), but the 75% you mention is hugely steep -- I know I wouldn't give up that much if I were to use such a service.

 

75% is the maximum for ClickBank, I think 5% is the lowest.

You haven't said what the service is, but if it's just online subscription with barely any overheads, I'd said 25-50% is common.