How do gurus get those EXPENSIVE affiliate prizes for their launches?

[Peter Helps]

There have been a lot, and I mean a lot of launches going on the I.M. world. I've been fortunate to join few of those launches as an affiliate. My question is as follows:

Many of those launches have prizes that are worth thousands of dollars. I'm talking about big screen TVs, laptops, Iphones, Nintendo Wii, and even cars.

My question is, how do they go about getting those things? I know, it sounds like a stupid question because since they have a lot of money, they just go out there, buy the products and that's it.

if I don't have $10,000 to spend on the affiliate prizes, how would I go about offering them in a launch?

What I meant to ask is there a store/place where they buy this stuff for cheap? What's the strategy here? They buy them after the launch while hoping that the launch will cover the prize money?

Last question: Anyone know of good places to buy jv prizes?

Thanks again,

Peter

[Marian Berghes]

I think they buy the prizes before the launch and then offer them as prizes.

[Mad Dawg]

I'm not a guru, but logic would tell me that all you have to do is offer the prizes at a reasonable level. For instance, if an affiliate makes x amount of sales, I can be sure that I'm still profiting, or at least breaking even when I give him his big screen TV on top of the money he's mad by promoting me.

And the real way this helps is because the prize exists, more affiliates hop in the promotional train. So even if you break even on the prize, you win in the end.

[Peter Helps]

yeah, but how would you do that on your first launch?

Peter

[eidoan]

I actually won a PS3 for 3rd place in a major launch a few months ago and I think they just purchased it afterwords because there was a choice of several different items. Though they wouldn't just give me the cash so maybe they did have some way of getting it cheap.

[Jason Moffatt]

Here's my thinking, and please don't take it as a diss as it's not intended to be one.

If you don't have $10,000 to invest into your launch, do you really expect serious affiliates to willingly get on board?

As an affiliate I want to make sure the guy I'm promoting is walking the walk and making lot's of money. I owe that much to my subscribers. Of course there are rare circumstances where a guy has proved himself before, but is down and out temporarily. However, in this case if you are worried over $10,000 or some spendy affiliate prizes it starts to cast a negative shadow over your abilities.

Also, I don't think all launches need to have prizes. The main thing people want is to just be paid their commissions.

But when you bring up the fact that you can't afford to buy these prizes it starts making me ask questions on the validity of what you are selling and WHY you can't afford these type of prizes?

If what you were selling really works, wouldn't $10,000 be a non issue?

That's just my thinking. Hopefully it helps you see from the perspective of how a successful affiliate might look at it.

[Devan Koshal]

JV with some people.

For example they sign up and then you link them to your jv's website where they has an free product for them, but they have to opt in to get it. Similar to what happend with the stompernet launch.

[JayXtreme]

Originally Posted by pk80356

yeah, but how would you do that on your first launch?

Peter

Either:

a) You shouldn't be launching...

or

b) You DON'T do it on your first launch

Peace

Jay

[matthewd]

Originally Posted by Jason Moffatt

As an affiliate I want to make sure the guy I'm promoting is walking the walk and making lot's of money. I owe that much to my subscribers. Of course there are rare circumstances where a guy has proved himself before, but is down and out temporarily. However, in this case if you are worried over $10,000 or some spendy affiliate prizes it starts to cast a negative shadow over your abilities.

Maybe he isn't talking about launching an IM product, though.

Maybe he is, I don't know... but or the sake of it, what would you say if he were in a different market and it was not about making money, therefore him walking the walk doesn't mean he can drop $10k all of a sudden?

[Peter Helps]

Originally Posted by Jason Moffatt

Here's my thinking, and please don't take it as a diss as it's not intended to be one.

If you don't have $10,000 to invest into your launch, do you really expect serious affiliates to willingly get on board?

As an affiliate I want to make sure the guy I'm promoting is walking the walk and making lot's of money. I owe that much to my subscribers. Of course there are rare circumstances where a guy has proved himself before, but is down and out temporarily. However, in this case if you are worried over $10,000 or some spendy affiliate prizes it starts to cast a negative shadow over your abilities.

Also, I don't think all launches need to have prizes. The main thing people want is to just be paid their commissions.

But when you bring up the fact that you can't afford to buy these prizes it starts making me ask questions on the validity of what you are selling and WHY you can't afford these type of prizes?

If what you were selling really works, wouldn't $10,000 be a non issue?

That's just my thinking. Hopefully it helps you see from the perspective of how a successful affiliate might look at it.

Thanks for your input Jason. I totally see what you are saying and see where you are coming from. Thanks again,

Peter

[Peter Helps]

The niche in is a different market, not in IM.

Peter

[JayXtreme]

Originally Posted by pk80356

The niche in is a different market, not in IM.

Peter

Have you considered getting someone to have as an affiliate manager?..

The two roads you can go down are bumpy.

One side will say that if you are releasing a product as a merchant only then you will need someone more IM savvy to deal with marketing...

The other side will say if you are releasing a product as an IMer in an outside market, then you should have the capital for the prizes.. if you do want prizes for affiliates of course..

Otherwise. just cut the prizes out completely...

imho

Peace

Jay

[Jeremy Kelsall]

The only prize I look for is a check.....

Although, I would have loved to have won that Contest that Travis Sago was running for an iphone with his number in it

[Steven Carl Kelly]

It's all about the product. Everything else is secondary. Some people may offer prizes to make up for deficiencies in their product.

[Peter Helps]

Yeah, I've thought about that and I'll probably get an affiliate manager. From what I've been seeing in my market, the prizes will have to be included.

Peter

[Jason Moffatt]

Originally Posted by matthewd

Maybe he isn't talking about launching an IM product, though.

Maybe he is, I don't know... but or the sake of it, what would you say if he were in a different market and it was not about making money, therefore him walking the walk doesn't mean he can drop $10k all of a sudden?

Yes I had thought of this as well, and in some circumstances it wouldn't be a big deal if, and only if he had credible proof that he or his expert was the "go to guy" in that niche. (Or go to woman)

As an affiliate I'd like to know some of the previous success the product had. Of course, everyone has to start from somewhere, and I don't want to impede anyone from getting out there and launching even if they are new at it.

But regardless of what niche you are in, past results will reassure potential affiliates that you are the real deal, and without those results it's a slight uphill climb. Not an impossible climb, but a bit more difficult. That's all.

Also keep in mind that many affiliates outside of IM are not accustom to receiving prizes for JV contests all the time. You could position it something like... "make 10 sales and receive a lifetime supply of Jolly Ranchers". "make 20 sales and get a bootlegged cable box". "make 30 sales and get a case of Voodoo Sangria" This way, you'd only pay out on prizes that you knew you could afford due to already placed sales.

edit: aha, just saw your last post. Maybe you could just go with really cool prizes instead of expensive ones. Really odd things.

[Peter Helps]

Originally Posted by faxinator

It's all about the product. Everything else is secondary. Some people may offer prizes to make up for deficiencies in their product.

The product needs to be superb. But having prizes for affiliates gives them motivation to promote your stuff.

Peter

[D Ambrose]

Originally Posted by Jason Moffatt

But when you bring up the fact that you can't afford to buy these prizes it starts making me ask questions on the validity of what you are selling and WHY you can't afford these type of prizes?

If what you were selling really works, wouldn't $10,000 be a non issue?

That's just my thinking. Hopefully it helps you see from the perspective of how a successful affiliate might look at it.

This wouldn't apply in all cases.

Lets say for example that he's created a new piece of software that helps you upidate your blog on an automatic basis. Now he's not made of money, but feels that what he's created would sell for big bucks.

The software itself wouldn't make him rich, but by selling it would.

So I would never question someones authenticity purely based on how much money he has, but on the product being offered and whether I think it would sell.

As for answering the original question ("if I don't have $10,000 to spend on the affiliate prizes, how would I go about offering them in a launch?")

...I would have to say that a good way to get around this would be to first work out how much you're selling your product for, then also require each affiliate to sell at least 10 products to qualify.

So If you're product is priced at $197, you would have $1,997 to spend on each prize (10 affiliate sales x $197) which should be enough to spend on prizes.

Obviously the higher the product, the better the prizes.

[Jason Moffatt]

Originally Posted by mm365

This wouldn't apply in all cases.

Lets say for example that he's created a new piece of software that helps you upidate your blog on an automatic basis. Now he's not made of money, but feels that what he's created would sell for big bucks.

The software itself wouldn't make him rich, but by selling it would.

So I would never question someones authenticity purely based on how much money he has, but on the product being offered and whether I think it would sell.

As for answering the original question ("if I don't have $10,000 to spend on the affiliate prizes, how would I go about offering them in a launch?")

...I would have to say that a good way to get around this would be to first work out how much you're selling your product for, then also require each affiliate to sell at least 10 products to qualify.

So If you're product is priced at $197, you would have $1,997 to spend on each prize (10 affiliate sales x $197) which should be enough to spend on prizes.

Obviously the higher the product, the better the prizes.

I agree and they were positioned as simply questions. Questions that I had, and many others will as well.

When considering and plotting out your positioning it's helpful to understand all the objections you will potentially face. My questions were not opinions set in stone, but simply questions and objections that came to the surface for me.

I like to iron out all objections even if they are not applicable for everyone or everything.

[D Ambrose]

Originally Posted by Jason Moffatt

I agree and they were positioned as simply questions. Questions that I had, and many others will as well.

When considering and plotting out your positioning it's helpful to understand all the objections you will potentially face. My questions were not opinions set in stone, but simply questions and objections that came to the surface for me.

I like to iron out all objections even if they are not applicable for everyone or everything.

Fair point. Nicely put.

[Lance K]

Originally Posted by wealth4life2010

Well, I would think it is a risk if you don't think the product sales will cover the prize amount.

If your launch strategy isn't though out any better than that, you have no business having a launch.

Originally Posted by wealth4life2010

Why do you need an expensive prize anyway?

To motivate your sales force. High achievers are competitive by nature. And most of them thrive on recognition.

[Kyle Tully]

My first thought is...

Why do you need $10,000 to buy prizes?

Buy them after the launch.

Put a minimum number of sales in order to qualify for a prize and you're set.

[Alan Petersen]

I was an affiliate manager a few years ago for a big network and we gave one new VW Bug per quarter so four in one year. Once the promotion was over the winner could go to their local dealer and order their car. We then wired them the money. It was too big of a prize expense wise and a bit of a hassle dealing with the dealer, paperwork, etc. so we only did it that one year.

For smaller stuff like TV's we had a buyer who find good deals in places like overstock.com and other spots.

If you can't afford those big prizes than don't worry about it. It's hard to do. And it's a mistake to offer a contest with big prizes and think I'll pay them off with the money you will generate. You better have the cash to buy those prizes in case something happens because "sorry my launch didn't make as much money as projected so I can't send you your prize" would be reputation suicide.

Not everyone can after the big hitters but there are a lot of mid-level affilaites out there who would be happy with an iPod for example. That's pretty cheap thing to give away as a contest.

[Chris Lockwood]

Originally Posted by wealth4life2010

Well, I would think it is a risk if you don't think the product sales will cover the prize amount. Why do you need an expensive prize anyway? If you think it will create sales (ie., more affiliates join in) beyond the cost of it, go for it!

There's really no risk. Set a minimum number of sales to qualify for each prize. That way you don't have to give someone a 60-inch plasma TV for making $100 worth of sales.

No need to buy the prizes until somebody's won them, then you can pay for them with the money from product sales and order them to be shipped directly to the winners.

[Steven Carl Kelly]

Originally Posted by pk80356

The product needs to be superb. But having prizes for affiliates gives them motivation to promote your stuff.

Well, I guess that's fine for some people.

Of course, I've been doing this since the early 90's and perhaps my style is a little different and more old school. I prefer to motivate affiliates with large commission checks. Affiliates who base their promotional efforts on the fact that they might earn a $200 video game probably aren't the affiliates I'm interested in.

[graphicsgenie]

Originally Posted by pk80356

yeah, but how would you do that on your first launch?

Peter

Make sure you have a **** hot product that converts

[Peter Helps]

lol Yeah I know.

Peter

Originally Posted by graphicsgenie

Make sure you have a **** hot product that converts

[Sylvia Meier]

Another option would be to offer the top affiliates or top 5 affiliates a higher percent commission on their sales to be paid at the end of the contest by Paypal or something similiar. That way you make extra cash from the affiliates promoting and they make more money which may be all the incentive they need. For example if your product normally pays 50% commission offer them an additional 25% paid out at the end of the contest or even 100%, you'll still make up for it from the sales of the others that are competing to make the most sales.

[entrepenerd]

Originally Posted by Sylvia Rolfe

Another option would be to offer the top affiliates or top 5 affiliates a higher percent commission on their sales to be paid at the end of the contest by Paypal or something similiar. That way you make extra cash from the affiliates promoting and they make more money which may be all the incentive they need. For example if your product normally pays 50% commission offer them an additional 25% paid out at the end of the contest or even 100%, you'll still make up for it from the sales of the others that are competing to make the most sales.

Thanks Sylvia, I really like the idea of offering 100% commission to the top affiliate after the contest is over. You'd really want to make sure to keep the rest of the list fired up and competing though or you could really cut into the profits.

[Peter Helps]

Those are some good ideas. Does anyone know of good place to buy affiliate products?

Peter

[Steven Carl Kelly]

Originally Posted by pk80356

Those are some good ideas. Does anyone know of good place to buy affiliate products?

Check Fatwallet.com for some of the best prices on different products. However, just so you know...

Whenever I've had the need to come up with giveaway items, I've often managed to get them for free in exchange for promoting the company who provided the product. You should consider that before you go out and buy them -- simply contact the supplier of the item you're interested in and explain the promotion and the estimated number of people who will be viewing your Web page. Provide the supplier a link if they do business online.

At one of my live "how to sell more" seminars I gave for a car dealership, I gave away a PS3 and three car racing games. I got the console and the games for free by calling a local video game shop in the city where I conducted the seminar. In exchange, they asked me to include a page with a coupon on it in the seminar workbook and to mention their company name every time I mentioned the prize.

Easy enough. I added the page to the back of the workbook when I sent the file to Fedex/Kinkos for printing and pick up near my hotel, and when I talked about the prize I said: "Don't forget, today I'm giving away a PS3 and three car racing games provided by Games & More".

[Josh Anderson]

Many just get some stock photos and put them up on their affiliate promotion page along with disclaimers requiring minimum performance levels.

Then they purchase the prizes only after the promotion makes them the money to pay for them.

Some actually have the prizes in hand before hand. But most do not.

Look for the one's with pictures of them standing next to the prizes ;-)

[zapseo]

Affiliate contests make me want to run the other way.
I don't want to promote what everyone else is promoting.
There are too many sleazy affiliate marketing tactics that come out with the contests and it's not worth my time & effort & money to promote stuff where other folks are going to pilfer the commissions.

There are plenty of good affiliate products to promote that don't have affiliate contests.

Now, I'm speaking as an affiliate marketer.

As someone who is selling a product -- I'll agree with graphicsgenie (Hi, Darren!!!) -- have a great product.

Put the money into making it a great product that converts rather than into affiliate prizes.

Even MORE than anything else.

My most recent client wanted to sell an ebook with a few additional items thrown in. At my suggestions, it became a comprehensive system and is getting RAVE reviews. (A great price doesn't hurt, either.)

Give buyers real value and get the word out -- and the buyers will come.

As leading copywriter (now retired) Gary Bencivenga says: "A gifted product is mightier than a gifted pen."

For those who are unfamiliar with Bencivenga -- he is considered by MANY A-list copywriters to be the greatest living copywriter.

Make it a great product.

And you will not only have buyers, but customers and clients who will anxiously look for what else you have to offer...

Live JoyFully!

Judy Kettenhofen, Profit Strategist/Copywriter
NextDay Copy

[WinsonYeung]

I agree with you, but i will not recommend the prize.
I will share it more evenly to help the affiliate earn more. Or use it to generate some traffic

Originally Posted by Jason Moffatt

Here's my thinking, and please don't take it as a diss as it's not intended to be one.

If you don't have $10,000 to invest into your launch, do you really expect serious affiliates to willingly get on board?

As an affiliate I want to make sure the guy I'm promoting is walking the walk and making lot's of money. I owe that much to my subscribers. Of course there are rare circumstances where a guy has proved himself before, but is down and out temporarily. However, in this case if you are worried over $10,000 or some spendy affiliate prizes it starts to cast a negative shadow over your abilities.

Also, I don't think all launches need to have prizes. The main thing people want is to just be paid their commissions.

But when you bring up the fact that you can't afford to buy these prizes it starts making me ask questions on the validity of what you are selling and WHY you can't afford these type of prizes?

If what you were selling really works, wouldn't $10,000 be a non issue?

That's just my thinking. Hopefully it helps you see from the perspective of how a successful affiliate might look at it.