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ebook affiliate commission industry standard

by hinner
8 replies
Hi guys,

This isn't about internet marketing but I wasn't sure which forum to post it in (sorry in advance).

I'm trying to start an affiliate program and want to figure out how much commissions each affiliate should get. What is the industry standard for an eBook? It sells for $27 (with a 25% rebate that can be claimed in the future).

Thanks,
#affiliate #commission #ebook #industry #standard
  • Profile picture of the author Rod Cortez
    Originally Posted by hinner View Post

    Hi guys,

    This isn't about internet marketing but I wasn't sure which forum to post it in (sorry in advance).

    I'm trying to start an affiliate program and want to figure out how much commissions each affiliate should get. What is the industry standard for an eBook? It sells for $27 (with a 25% rebate that can be claimed in the future).

    Thanks,
    There is no industry standard. It depends on what your marketing funnel and product strategy is. For example, if you have a lead product for $27, you might offer a 75% to 100% (or even more) to affiliates because you're going to make your money on the back end.

    Some people cite that the standard is 50%, but that's not true. There are too many variables to consider such as your price point, back-end strategy, expenses, etc.

    Is the ebook your only product?

    RoD
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  • Profile picture of the author Romeo90
    As above, there is no industry standard.

    But you have to think of the affiliate who will be marketing your eBook to perhaps their email list or on their blog - you have to make it worth their while.

    I usually set mine to 50%.
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  • Profile picture of the author tooAlive
    Like Rod said, there's really no magic number to shoot for. But as a rule of thumb, the higher % you offer, the more affiliates would want to promote your product.

    In which case it may be a good idea to test different commission rates, as you may end up making more money by giving your affiliates a bigger piece of the pie. Example:

    A) $27 product, 60% commissions, 1000 sales = $10,800 profit for you.

    B) $27 product, 75% commissions, 2000 sales = $13,500 profit for you.
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  • Profile picture of the author hinner
    Rod,

    The ebook is currently my only product, so the back-end strategy may not work. But that is definitely something interesting to remember for the future!

    I was initially considering 30, but it now seems like I will start with 50 to keep it enticing
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    • Profile picture of the author Rod Cortez
      Originally Posted by hinner View Post

      Rod,

      The ebook is currently my only product, so the back-end strategy may not work. But that is definitely something interesting to remember for the future!

      I was initially considering 30, but it now seems like I will start with 50 to keep it enticing
      You should always have a back-end strategy, even if you only have one e-book.

      Build up a list and market other people's products / services to them. Unless you plan on getting major publicity on television and radio or know how to convert a lot of highly targeted traffic, single product launches are usually doomed for failure.

      You stack the odds tremendously in your favor if you have a comprehensive back-end strategy.

      Market your ebook, then find at least 10 to 20 other products or services, that you have faith in, and market them to your list. Also thinking about expanding your own product line.

      RoD
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  • Profile picture of the author Stuart Walker
    No back end strategy is a bad idea. You NEED one and you need it now. Don't hesitate at building a list and monetizing on the back end as you WILL regret it later.

    What are other people in your niche doing commission wise? If the standard is 100% on price points like $27 and you only offer 50% it will put a lot of people off.
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  • Profile picture of the author hinner
    Hi guys,

    Thanks for the responses. Perhaps I'm not understanding the back-end strategy very well, but I'm a bit confused. Here's my situation.

    I'm in a niche that has very little authority sites and competition out there (I really only have 2 competitors - both not big at all and PR0 sites). At the same time though, there aren't that many products. So to find 10-20 to market may be a bit difficult. Would the back-end strategy work for me? Do you mind explaining how it works exactly?

    Thanks,
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  • Profile picture of the author Allan_Gardyne
    There are all sorts of different variations.

    For example, you might start by giving away a free report to encourage people to get on your email list or subscribe to your newsletter. You sell them a $27 ebook. Immediately after they've clicked the "Buy" link - or later - you sell them a more expensive product, say a $197 webinar. Next you sell them a $990 seminar. You often this this sort of thing in the "How to make money online" market.

    In your case, you might need to look for related products that your customers would be interested in. For example, if you're selling ...... training, you could then provide a affiliate links to ...... pet food and ...... hutches, etc.

    You'd need to know a lot about your typical customers and their interests.

    Do some searches for "sales funnel" and you're sure to learn heaps more.
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