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How much are affiliates and JV partners worth?

by Brains Gone Wild
9 replies
Starting last year, we started doing a lot of JV brokering and managing for product creators/sellers. We've found, via feedback from our clients, that sellers would prefer to pay on a per-affiliate basis. In other words, we typically charge a percentage of the sales that our affiliates bring in and/or a retainer. However, most sellers have indicated that they would rather pay $x for each affiliate or JV partner that we send them. So, this begs the question..... how much should we charge for each affiliate that we refer? How much would you pay? Warrior help and feedback would be greatly appreciated! Thanks
#affiliates #partners #worth
  • Profile picture of the author craig crawford
    Hey!

    I don't think you can put an $x on per Jv... as a set price... because some can bring more heat then others.

    Someone who has a much bigger, more responsive list is worth more to us then others with smaller more unresponsive lists

    Hope this helped,

    Craig
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    • Profile picture of the author Brains Gone Wild
      Originally Posted by craig crawford View Post

      Hey!

      I don't think you can put an on per Jv... as a set price... because some can bring more heat then others.

      Someone who has a much bigger, more responsive list is worth more to us then others with smaller more unresponsive lists

      Hope this helped,

      Craig
      Craig,

      I would agree with you 100%, as we've been charging a percentage per sale brought in by our recruited JV's - standard industry scale. However, it seems as though most sellers would prefer to pay "a la carte" (which surprises me), almost treating it as just another cost of doing business expense when launching. I guess I can see the benefits of both models but I understand that there are almost too many variables to factor. Nonetheless, thanks for your feedback and help
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      • Profile picture of the author craig crawford
        more then happy to help buddy!

        I see your predicament... I think a % should be suffice... people are just maybe wanting to monetize you better... by picking and choosing? Personally I'd hold it as a % of sales rather then a fee per affiliate... unless you had a price list? But then I wouldn't want to put a price on my respected JV's heads... ha ha! it certainly is a tough one buddy

        Craig
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        • Profile picture of the author Brains Gone Wild
          Originally Posted by craig crawford View Post

          more then happy to help buddy!

          I see your predicament... I think a % should be suffice... people are just maybe wanting to monetize you better... by picking and choosing? Personally I'd hold it as a % of sales rather then a fee per affiliate... unless you had a price list? But then I wouldn't want to put a price on my respected JV's heads... ha ha! it certainly is a tough one buddy

          Craig
          LOL Thanks Craig
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  • Profile picture of the author butters
    Depends on the quality of the affiliate, the typical price of the product, how many units will typically be sold by affiliates, quite a lot of factors come into the pricing so if you could give more information about a typical launch, that would be helpful.
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    • Profile picture of the author Brains Gone Wild
      Originally Posted by butters View Post

      Depends on the quality of the affiliate, the typical price of the product, how many units will typically be sold by affiliates, quite a lot of factors come into the pricing so if you could give more information about a typical launch, that would be helpful.
      Lee,

      Thanks for your feedback. Unfortunately, we cover so many types of products and launches that "typical" or average is difficult to gauge. We've helped with smaller WSO-type launches, all the way up to epic Clickbank projects. If I had to, I'd say our average retail product sale amount is @ $40 and, of course, sales depend on too many factors; commission offered, product type, OTO's, platform, etc, etc...

      Sorry to be so vague but the industry is all over the place right now with launches
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      • Profile picture of the author butters
        Originally Posted by Brains Gone Wild View Post

        Lee,

        Thanks for your feedback. Unfortunately, we cover so many types of products and launches that "typical" or average is difficult to gauge. We've helped with smaller WSO-type launches, all the way up to epic Clickbank projects. If I had to, I'd say our average retail product sale amount is @ $40 and, of course, sales depend on too many factors; commission offered, product type, OTO's, platform, etc, etc...

        Sorry to be so vague but the industry is all over the place right now with launches
        Keep doing what your doing, if you are bringing them people who make sales (building there list) and building there brand then they should pay per sale. The only reason they would do any different is because they feel they could earn more that way. Quite honestly if I made a product in the IM niche and you brought affiliate along to sell my product (and actually sold), I'd give you 100% commission!!
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  • Profile picture of the author Victor Edson
    You'd really have to know each affiliate and what they're capable
    of doing to charge a flat fee for bringing them onboard.

    That being said, if you knew an affiliate could move 100 units
    easily, you could flat fee what would be about 10% revenue.

    Long story short, an affiliate recruiter is all about quality and
    sales... why would they want to pay you and not hold you
    accountable for your work? You could easily have affiliates
    sign up and never do anything for a flat fee, but on a commission
    platform, you're only looking for affiliates who will sell and
    make you/your client money.
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  • Profile picture of the author TheInfoMarket
    The system you have in place is already a fair system for all parties involved. With a percentage commission everyone profits and wins.

    Obviously your clients want to reduce their costs, by getting a better deal from you. You should consider changes only if you are actually losing customers to competitors because of this.

    As others mentioned you can't put a fixed price on an affiliate, it just depends on who it is and how much influence they have.

    The only solution to this I can think of, is to compromise with some sort of tiered pricing system, based on the performance of the affiliate. But this would be pretty complicated to setup and probably not worth it.
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