What is a Good Affiliate Deal for You?

by Nym
12 replies
Hi Warriors,
a fried is asking me to design his affiliate deal for an e-commerce that sell nice food products.

So, I was wondering what you consider a good affiliate deal

- 10% commissions?
- 30 days buying?
- Monthly payment of the commissions ?
- Web page tracking the referrals?

Ideas and suggestions are more then welcome!
#affiliate #deal #good
  • Profile picture of the author Tom Addams
    The only way I'd accept a 10% commission is for a very high-ticket item or from a platform like Amazon.
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    • Profile picture of the author Nym
      guess it depends on the price of the item too.

      If the product cost 5$ -----> 0.5$ commission
      if the product cost 50$ -----> 5$ commission

      But your feedback is quite welcome, what would be something reasonable?
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      • Profile picture of the author Tom Addams
        Originally Posted by Nym View Post

        guess it depends on the price of the item too.

        If the product cost 5$ -----> 0.5$ commission
        if the product cost 50$ -----> 5$ commission

        But your feedback is quite welcome, what would be something reasonable?
        I wouldn't be interested, I'm afraid.

        If the product costs $5, I'd want $2.50.

        If the product costs $50, I'd want $25.

        Those would be my minimums.

        Now...

        If a product costs:

        $5,000, I'd be happy with $500

        $50,000 I'd be happy with $2,000 to $5,000

        GRM
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        • Profile picture of the author Sebastian Gomez
          Originally Posted by Get Rich Methods View Post

          I wouldn't be interested, I'm afraid.

          If the product costs $5, I'd want $2.50.

          If the product costs $50, I'd want $25.

          Those would be my minimums.

          Now...

          If a product costs:

          $5,000, I'd be happy with $500

          $50,000 I'd be happy with $2,000 to $5,000

          GRM
          Definitely agree with this.

          It all depends on the price of the product. For me it is a much better deal to sell products that are high in price and value and get a 50% commission for that.

          For example let's say that you want to get $2000 by the end of the month. What's better? To sell 200 products that give you $10 in commissions or sell 2 products that give you $1000 per sale?

          Off course it's much easier to sell 2 high priced products per month!

          Hope this helps you!
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          • Profile picture of the author kilgore
            Yes, absolutely higher commissions are nice, but they can also work against you if the product itself is then overpriced to compensate for the high comission rate. And really when it comes down to it, it doesn't matter what percent of each sale or even how much money on each sale I'll get. Rather for me it comes down to (1) what my total potential revenue is for promoting a specific product and (2) whether I make more money in total promoting another product in its place.

            For instance, in my niche, I could promote a ClickBank product from someone that nobody has ever heard of that costs $100 (of which I'll get $50) or something similar on Amazon that looks respectable, costs half the price, but for which I'll only get 8.25%.

            For me, it's a no-brainer. I'll go with the Amazon product. Because for me, in my business, in my niche, using my methods, Amazon is a trusted name and I know that at that lower price point I may sell 100 or 1000 of those widgets whereas I might be lucky to sell just one of the Clickbank version.

            Or put mathematically:
            Clickbank: $100 * 50% commission * 1 sales = $100
            Amazon: $50 * 8.5% commission * 100 sales = $525

            I should also note that in the example above, we'd likely get 1,000 shares on our Facebook page for the Amazon product and maybe 10 for the Clickbank product, leading to 10 new Facebook likes on Amazon and 0 on Clickbank. Good selling isn't just about the product on offer, after all; it's about building your lists and credibility for the future. Which is why even if I made more from Clickbank, I'd have my reputation to worry about. Sorry, but that's not worth an extra hundred bucks.

            As another example, we once promoted a $20 product that only paid 3% commission. Yes, 3%! Ridiculous, right? But the thing was, this was a product that we and our customers had been tracking for a long time so we knew there was very high demand; it was a very limited run; and it was only available in one place. So basically, it was take the 3% or get nothing. So we took the 3%, sent out one Facebook post, literally sold them out within two hours and came away with $500. Sure, I wish that 3% was 30% (especially because in this case, people would have still bought it at $30 instead of $20), but what I also wanted was for them to have had 3000 of those in stock instead of the 1000 or so they had -- because we probably would have sold them all. But in the end $500 for a single Facebook post wasn't a bad haul -- even at 3%.
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by Nym View Post

    a fried is asking me to design his affiliate deal for an e-commerce that sell nice food products.
    These days, many people seem to think that "baked" and "boiled" and even "poached" are nicer food products than "fried": one has to move with the times, I guess?

    Originally Posted by Nym View Post

    So, I was wondering what you consider a good affiliate deal

    - 10% commissions?
    The only way most serious affiliates (i.e. the ones who will actually send any traffic) are going to consider 10% a "good deal" is probably for a high-priced product from a very well-known and highly-respected vendor/merchant (like Amazon).

    Originally Posted by Nym View Post

    - Monthly payment of the commissions ?
    Payment how, and by whom?

    Your friend needs to be aware that in "the competition to find affiliates online", he'll need to have something better to offer the affiliates than (for example) ClickBank, where affiliate commissions are up to 75% and paid weekly/bi-weekly by a well-known company whose reliability of payments is famous worldwide, among affiliate marketers. Just being realistic, here.

    Most serious, pro-affiliates don't want to be dependent on vendors they don't know, for their payments. It's just an additional worry and potential problem.

    No disrespect at all to your friend, but he needs to know that "that's the competition", and it will probably take something really special to interest good affiliates. Especially if there's a possible "payment reliability issue" to think about, too (from the affiliates' perspective - and there always is, with an "unknown vendor").

    He also probably needs to know that in the affiliate marketing world, in general, from the vendor's/merchant's perspective, about 1-5% of the affiliates make 95%+ of the affiliate-referred sales, so it's not about "finding as many affiliates as possible" as much as it's about "finding some good affiliates", and the ways of doing those two very different things are also, themselves, necessarily very different.

    .
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  • Profile picture of the author faisalmaximus
    A always prefer recurring affiliate programs, though its tough to manage. As I work with automated SEO tools, so I like to work with these tools related affiliate programs. I get regular commissions promoting these tools, some of them are recurring also. Commission rate is also 20-25%, so overall I am satisfied with these.
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  • Profile picture of the author Brent Stangel
    "the competition to find affiliates online"
    Is fierce. There are some pretty attractive incentives being offered. If you can make sales you are like the prettiest girl at the dance!

    As a point of interest (mine), I recently choose one launch over another because one of the prizes was a "Super Affiliate" T-shirt. A $20 T-shirt, but I wanted that sucker!

    Sadly, I didn't make enough sales.
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    • Profile picture of the author Tom Addams
      Originally Posted by Brent Stangel View Post

      Is fierce. There are some pretty attractive incentives being offered. If you can make sales you are like the prettiest girl at the dance!

      As a point of interest (mine), I recently choose one launch over another because one of the prizes was a "Super Affiliate" T-shirt. A $20 T-shirt, but I wanted that sucker!

      Sadly, I didn't make enough sales.
      Mental note to remember this. I like that kind of affiliate offer.
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  • Profile picture of the author Sarah Operman
    It all depends on the type of product. 10% would be fine for a physical product, but for an intangible product would not be a consideration.
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by Sarah Operman View Post

      10% would be fine for a physical product, but for an intangible product would not be a consideration.
      Why does the "tangibility" make a difference to you, Sarah?

      Would you really prefer to promote a tangible product that costs $50, pays 10% commission and converts 10% of your traffic, to promoting an intangible product that costs $150, pays the same 10% commission and converts the same 10% of the same traffic? It seems to me like the intangible one would pay you three times as much? (You can change any/all of these example figures either upwards or downwards by the same proportions, if you wish, and the underlying point's still the same). So why would one 10% commission be "fine", but the other "not a consideration"??

      .
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  • Profile picture of the author Nym
    Thx for the answers,
    I will be happy to give you 600% in commission but it is not me to decide the final number sorry. The price is not imposed but I am not sure if we can have more than 50% profit margin in total (again, I am just guessing do to not know the exact numbers).

    @Alexa
    -) as for the payment, I was assuming some trust and have a direct partnership skipping intermediary but your point make quite a lot of sense.

    -) this product is a non durable (not baked ) so you may also have customers that periodically buy it giving you a periodic commission. That is probably the point of Sarah.

    @Kilgore, Alexa, Sebastian, Get Rich
    - I do not mind involve an intermediary like amazon and/or other but probably this will play against both the IM and the supplier as it will get its cut. However i can see some benefit in both involving a partner that is trusted.

    - if you are considering too high commissions there is the risk to not be able to sell the products as the final price will be maybe too high, isn't it?

    @Brent
    - I will send you a T-shirt for free as soon as this program will start!
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