14 {{ upvoteCount | shortNum }}
14 {{ upvoteCount | shortNum }}

Fair percentage to pay affiliates?

by GowebMkt
12 replies
What is a fair amount to pay affiliates for bring a sale to you?

For example, a membership site charges $9.95/mo....is 50% aff commission fair?

Or should I pay 100% on-going commissions, and make money on offers I send to the members?
#affiliates #fair #pay #percentage
  • Profile picture of the author abbs
    It depends on a number of factors in my opinion.

    How easy is it to get affiliates on your website? How many are you getting on your own? How many are there already?

    If your site is new and unestablished, I think you should pay a higher rate of commission but otherwise, that seems fair to me, mainly cos it is recurring and if you have good content, people are likely to hang around.
    Signature

    Internet-based freelancing is a SCIENCE and The Freelancer Academy has figured it out!

    Get my Comprehensive Guide to Finding Success on Freelancer.com and learn how to win projects consistently

    {{ DiscussionBoard.errors[6093642].message }}
  • Profile picture of the author Guru_Marketing
    Originally Posted by GowebMkt View Post

    What is a fair amount to pay affiliates for bring a sale to you?

    For example, a membership site charges $9.95/mo....is 50% aff commission fair?

    Or should I pay 100% on-going commissions, and make money on offers I send to the members?
    There's no right or wrong here. Test.
    Signature

    Kindle Publishers: Get Reviews and More Sales to Your Kindle Books at http://GettingPublishedFast.com/publishers/

    {{ DiscussionBoard.errors[6093654].message }}
    • Profile picture of the author dodadder
      This is correct!

      Originally Posted by Guru_Marketing View Post

      There's no right or wrong here. Test.
      {{ DiscussionBoard.errors[6093676].message }}
  • Profile picture of the author Ross Cohen
    Don't worry about percentage as much as its ability to convert. Any affiliate marketer would much rather a product that pays 50% but converts twice as well as one that pays 75%. Other equally important factors include if there is an opt-in option on the sales page (big no-no), if there is opportunity to make more with an upsell, likelihood of refunds (how good the product actually is), and the reputation of the seller.
    {{ DiscussionBoard.errors[6093666].message }}
    • Profile picture of the author GowebMkt
      Originally Posted by Ross Cohen View Post

      .... Other equally important factors include if there is an opt-in option on the sales page (big no-no)

      On the Home page is just a member sign up.

      So Im not asking for name / email on the home page. Its a paypal subscribe button...once they pay $1 for a 30 day trial, there name and email is auto added to my aweber list.
      Signature
      {{ DiscussionBoard.errors[6093831].message }}
  • Profile picture of the author WillR
    Are you asking what's 'fair' or what's going to attract the most amount of affiliates -- they are two different things. Obviously a 50/50 split is 'fair' in that you are both responsible for the sale so you should share the profits.

    As to what commission percentage will attract the most amount of affiliates, the higher the better.
    Signature

    .


    .

    {{ DiscussionBoard.errors[6096224].message }}
  • Profile picture of the author CDarklock
    Originally Posted by GowebMkt View Post

    What is a fair amount to pay affiliates for bring a sale to you?
    On an infoproduct, 50% - anything less than that is like "screw affiliates, I don't need you anyway," and anything more is like "OH GOD PLEASE PROMOTE MY PRODUCT PLEASE PLEASE PLEASE."

    On physical products, 5% is fair. Margins are razor-thin on physical products.

    Most people disagree with me. Violently.
    Signature
    "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
    {{ DiscussionBoard.errors[6096318].message }}
  • Profile picture of the author AmandaT
    Especially for a membership with recurring commission, 50% is fair.
    Signature
    {{ DiscussionBoard.errors[6096375].message }}
  • Profile picture of the author Mohammed Hammad2
    50% is the fair option that you can use and as said before in that topic, you have to worry about how your offer convert.

    Because if you can show your potential affiliates that you get a high conversion rates then they will be more likely to promote your product.

    And as CDarklock said

    On an infoproduct, 50% - anything less than that is like "screw affiliates, I don't need you anyway," and anything more is like "OH GOD PLEASE PROMOTE MY PRODUCT PLEASE PLEASE PLEASE."
    So 50% is your way to go (in my opinion).
    {{ DiscussionBoard.errors[6096594].message }}
  • Profile picture of the author jbsmith
    With a $10/month membership site I would suggest something between 45-60%, any less and people won't promote, any more is OK if you have a solid, proven back-end in place or if your emphasis is simply on building a buyer list that you can then convert on the back-end in the very near future (they will dry up quickly)

    I would also look at giving your top affiliates a % of the back-end as well...so let's say 20% of your $10/month customers would pay you $100/month or more for a group coaching option or perhaps $1000 for a personal coaching option - then giving your affiliates a 30-40% cut of this would further intice them to push the membership sign-ups.

    Jeff
    Signature
    Turn Your Knowledge Into High-Paying Digital Products To Sell Online
    {{ DiscussionBoard.errors[6117800].message }}
  • Profile picture of the author Nixgan
    Now a days, the rate is pretty much 75%/25%, or 50/50 I guess, depending on the price of your products and what you intend to sell to the buyers after they buy your products. Something like a long term plan ?
    {{ DiscussionBoard.errors[6121803].message }}
  • Profile picture of the author Nixgan
    Maybe you can give us a little more information of what you are planning to do inside the membership site?
    {{ DiscussionBoard.errors[6121809].message }}

Trending Topics