For those who've managed their own Affiliate Programs: Coupon Codes + Affiliate Commissions = ?
I'm interested in hearing from folks that have setup and managed their own Affiliate Program.
Preferably those of you that had a service (such as a membership site), or software that involved additional support costs for each user, and not just an ebook with little to no overhead after the initial time investment.
Here's an example:
If you offer a 25% commission, then somebody also uses a coupon for 25%, you've lowered the sale price to be equal to your break-even point (ie $50).
Some ideas my business partner and I have thrown around:
Thanks
Preferably those of you that had a service (such as a membership site), or software that involved additional support costs for each user, and not just an ebook with little to no overhead after the initial time investment.
Here's an example:
- For your service, the absolute lowest you can go is $50, because you have to cover costs like hosting, mailing list, support, etc.
- You currently sell this service for $100.
- You already offer coupons with discounts of 25%, so that brings the sale price to $75 and you make $25 profit.
If you offer a 25% commission, then somebody also uses a coupon for 25%, you've lowered the sale price to be equal to your break-even point (ie $50).
Some ideas my business partner and I have thrown around:
- Raise service prices across the board, so the $100 might increase to $150, but that seems like an easy-way-out and not a great solution, as you're reducing the chance that non-affiliate and non-discount customers will sign up.
- Instead of having "global" coupon codes, set them up so they only apply to people signing up under specific affiliates, then you can manage the profit margin at a lower level of detail.
Thanks
