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Affiliate commission for software?

by dwatrous
12 replies
I'm about to launch a site selling a software product. I've been selling it under another name for over a year at $89 but haven't used any affiliates.

I'm about to launch it under a rebranded name and plan to take on affiliates. What do you think I should offer as an affiliate commission?

I know that some ebooks, videos, audios, etc. offer 50%-75%. There are two differences with software.
1) more support and highly technical support
2) continual software development expense

I'm not sure if affiliates see that as being different, but I would be interested to hear what you think.
#affiliate #commission #software
  • Profile picture of the author Softlayone
    Is this one time price or with subscription monthly plans/fees? For one time price I wouldn't offer 50-70%, but if you have monthly subscriptions avaliable it would be close to these numbers.
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    • Profile picture of the author Joseph G Spiteri
      It all depends on what your happy to offer but i think a 50% commission on a $89 product is fair.
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  • Profile picture of the author agc
    The reality is most buyers of any software package either never really use it, or don't use anything but the most cursory use cases.

    Selling more copies doesn't (or at least shouldn't) equate to a linear increase in support costs.

    Also, if you make it a habit to actually fix the software to prevent the issues identified by and causing support calls, then your current support costs will at least contribute to reducing future support costs.

    So... in that case, giving half as a commission means you get a sale you otherwise wouldn't have had. Your incremental cost is (or should be) negligible, while your fixed cost is considerable.

    I'm a developer, not an affiliate. And I think that if your support costs are high enough to worry about giving 50% as a sales commission... you should be rethinking your strategy because something has gone horribly wrong somewhere.
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  • Profile picture of the author Randall Magwood
    I would offer 60%. This is a little more than 50%, so your affiliates will tend to say "yes" in promoting your product. Any sales that they make, you get the customer name and contact information for free. That's the most important thing. Then sell to these customers over and over again.
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    • Profile picture of the author agc
      Originally Posted by Randall Magwood View Post

      I would offer 60%. This is a little more than 50%, so your affiliates will tend to say "yes" in promoting your product. Any sales that they make, you get the customer name and contact information for free. That's the most important thing. Then sell to these customers over and over again.
      In all fairness Randall, that strategy works for the affiliates who are selling and can sell any number of products, almost at whim.

      But for the developers, to be successful you often need to focus on a single product, making it better and better over time.
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  • Profile picture of the author euraffiliates
    I think it will be never possible for you to 50%-75% commission for any labour intensive services (that requires tech support or custom programming).

    I think it is better to set a differential commission structure. Say for license sale high commission (say 30%-50%) and for support contract or custom work low commission (10-15%).

    However, your affiliate software must support differential commission setting.

    Thanks
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  • Profile picture of the author Joseph G Spiteri
    Originally Posted by Whos That Guru View Post

    Only you will know the answer to this.
    What % would you be willing to give your affiliates, but at the same time, would make the work you need to perform worthwhile?
    Well why not offer 90% Does that sound good to you.
    Do you get my point.
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  • Profile picture of the author Robert Michael
    No I dont. But apparently you didnt get MY point either.

    Oh well, good thing I wasnt directing my post at you.

    PS: your double-post said the exact same thing that I told the guy - ONLY HE will know what he's willing to give as his commission that will still make it worth-while for HIM as the vendor.

    How are we supposed to know what kind of work its going to take on his part? WE DONT.

    Run along now.
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  • Profile picture of the author markowe
    I have been reluctant to go above 60% for my software, basically for the reasons you mention. There is INEVITABLY more maintenance and support for a software product than, say, an ebook. Affiliates ought to appreciate that, as well as the potentially decent conversion rate and low refund rate on (quality) software. Not all products have been created for the sole purpose of list-building... Or do people think we should only sell our premium product on the back end? (ok, not out of the realms of possibility, I agree).
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  • Profile picture of the author CyberSEO
    Originally Posted by dwatrous View Post

    I'm about to launch a site selling a software product. I've been selling it under another name for over a year at $89 but haven't used any affiliates.

    I'm about to launch it under a rebranded name and plan to take on affiliates. What do you think I should offer as an affiliate commission?

    I know that some ebooks, videos, audios, etc. offer 50%-75%. There are two differences with software.
    1) more support and highly technical support
    2) continual software development expense

    I'm not sure if affiliates see that as being different, but I would be interested to hear what you think.
    50% will be a good commission for both you and affiliates. I know about (1) and (2) very well because I also develop my own software and sell it via affiliate program. These points are not reason to cut off the commission IMHO.
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  • Profile picture of the author AnnaSEO
    50% will be good for both,60% will drive in more affiliates.
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