Affiliate Commissions

5 replies
I have seen some posts here on the forum lately with discussions about affiliates and affiliate commissions. I thought I would post my $.02 for what it's worth.

When I started in IM, I was an Amazon affiliate earning 4-6% depending on how good a month I was having. I moved over to being a product creator after I "did the math" and realized where the big money was being made.

I was still pretty green and I launched my 1st WSO and made a decision to offer 100% commission to my affiliates. I had none when I launched that 1st WSO and picked up a couple once it went live.

My biggest mistake was not giving 100% to affiliates, but not having a backend to monetize. I had no funnel at all. I nurtured my relationship with my subscribers and was able to make some money with follow-up selling.

As I gained more experience as a product creator, I got better and better with my products AND my funnels. For my largest WSO to date, I offered 50% across the entire funnel, 4 products in all.

During that particular launch, I was adamant about not bumping the commissions higher, but I had 1 affiliate in particular who requested 100% on the FE and after a long internal debate, I agreed.

This ended up being my #1 affiliate for the launch. Sure, I lost over $1000 in sales from the front end, but with my 50% conversion on the OTO, I could have lost $1,350 from those sales and over 100 subscribers. this does not include OTO 2 or 3 either.

As I look at my business, I see changes across many "free" platforms like Google, Facebook and others, but having some killer affiliates is worth way more to me than page one listings. A solid affiliate can send 1 email and make me 4 figures or more, I can't say the same for Google.

To really make an educated decision, you have to have a goal for your product:

  • Subscribers
  • Money
  • Both
If you want subscribers, offer 100% on the entire funnel. This will attract many affiliates since the EPC's will likely be pretty high.

If you want cash, offer 50% across your funnel. This will attract affiliates and put some money in your pocket.

If you want both, offer 100% on the FE and 50% on the rest of the funnel. this will get a lot of affiliates since it is 100% and you can monetize with a strong backend offer.

Knowing what I know now, I would put at least 1 OTO into every funnel and use that to help monetize. I would also consider giving 100% or at least 75% to affiliates on the front end. This should make a nice balance for you and affiliates.

To our mutual success,

John
#affiliate #affiliate commissions #backend #commissions #oto
  • Profile picture of the author drbrucehoag
    Great advice, John.

    I think we have a mutual acquaintance who has said that we should strive to make our affiliates rich.

    Makes a change from focusing on just ourselves.
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    • Profile picture of the author John Racine
      Originally Posted by drbrucehoag View Post

      Great advice, John.

      I think we have a mutual acquaintance who has said that we should strive to make our affiliates rich.

      Makes a change from focusing on just ourselves.
      Thanks Bruce,

      I did draw inspiration for this post from that acquaintance. ;-)

      John
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  • Profile picture of the author sparrow
    The key here is having a strong backend in the funnel

    Tough for some, but good wisdom

    All you need to do is look at most of the WSO of day offers they are driven by this concept

    Words of Wisdom learned the hard way

    Ed
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    • Profile picture of the author John Racine
      Originally Posted by sparrow View Post

      The key here is having a strong backend in the funnel

      Tough for some, but good wisdom

      All you need to do is look at most of the WSO of day offers they are driven by this concept

      Words of Wisdom learned the hard way

      Ed
      Thnks Ed,

      It was definitely learned the hard way for me, but am I glad I suffered and learned from it.

      John
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  • Profile picture of the author jbsmith
    Yep, I learned this too after launching a very successful "intro-level" ebook back in the early 2000's where my customers actually pushed me into various back-ends (coaching, membership sites, additional ebooks, physical home study course, etc...)

    The money with info-products is definitely having a family of products that addresses the beginner right through to the 20% of your market who will be "advanced" and buy the highest-end products and services.

    You can do this all on your own, outsource some of it or even partner (via finder's fees or affiliate relationships) to offer OTO or other upsell/cross-sell options - it is a critical part of marketing online though, I agree.

    Moral is that even if you do not have a back-end/upsell today, you can quickly tap into your list/customer base and find out what ELSE they want and quickly put one together.

    Jeff
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