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Prize Money Guidance Needed

by TiffanyLambert
8 replies
Hi Warriors!

I need prize money guidance. Here's why:

My 1st product (the Squidoo course that has since been deleted in like 2006 or so) was promoted here as a WSO for $10 (lol, later $47). I didn't know what I was doing and had everyone from John Reese to Yanik Silver promoting me - with zero affiliate tools, no prize money, etc.

Ever since then, I have never done formal "launches." Ever. I just make it live, notify my list, and those who want to promote - promote.

Since this is the year of Tiffany Lambert "leveling up" - I will be doing it right next time around. As in, MAJORLY doing it right and going AFTER big promoters.

I'm currently taking/reviewing IM John Chow, and I noticed he emphasizes things he looks for, including:

1. Affiliate Tools (already doing that, so I get that)...
2. Affiliate Newsletter (never been one to do this but I will now)...and
3. Prize money.

Prize money...yikes. How do I know how to do this? It's NEVER been anything I go by AS an affiliate. I ignore all that crap. I know it would benefit me financially, but I've always been more concerned with the person and product being viable than any prizes included.

I've seen anything from $25 Amazon gift cards being doled out to $10,000 and new cars, trips, etc.

Is there some formula to figure out how much to award? How is it tracked? I'm doing it through ClickBank. When is it paid - ie: refunds they send, etc.?

Basically, has anyone written a guide or blog post on this to guide me?

I'm taking my time to ensure I don't rush things and screw up somewhere along the way.

If you're an affiliate, are there certain things that impressed the hell out of you in terms of prize strategies?

Tiff Lambert
#guidance #money #needed #prize
  • Profile picture of the author Steve Wells
    I am not an expert but I would definately look into the laws of giving away prizes and where your obligations are at.

    I would also need to be VERY sure that I have calculated that my earnings, and refunds are figured into it all, before I figure out what money I could honestly award someone with.

    I believe that there are lots of things to consider with something like this.

    I think alot of people do it, and do it well, and I also think that alot of times, goals are set, and not acheived, thus the seller, gets lots of sales with not having to pay out. Sometimes I believe that this is on purpose where goals are not realistic.

    I too, would love to see a plan of action, regarding this, done by someone who knows what they are talking about. This would be a great product/information to make money off of, it was was actually applicable, and easy to impliment and follow.
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  • Profile picture of the author WillR
    Cash. Cash is the language everyone understands. Cash prizes are always preferred by me.

    As to the size of those prizes, it really depends on how big you anticipate your launch to be. The bigger the prizes the better.

    I would usually run the contest for 7 days or maybe a little longer, again depending on how many affiliates you are going to have promoting. During the contest you use a leader board and email updates to get the affiliates trying to beat each other. That's the purpose of the affiliate contest and that's why you want the prizes to be worth them fighting over.

    For example, if I am in 2nd place and you tell me I am only 5 sales behind first place, if the different between first and second place was only $50 or so then it's very unlikely I would risk emailing my list the same offer again. But if I was only 5 sales behind and the difference between first and second prize was $250-$500 then I am going to be a lot more likely to remail the offer to try and get that extra cash.
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  • Profile picture of the author TiffanyLambert
    Thanks Will! It's very intimidating because this is the first time I'm plotting and planning. Every other time I just blurted out there on the scene like a wreck. It worked, but not to the levels I want it to work.

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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by TiffanyLambert View Post

    Prize money...yikes. How do I know how to do this? It's NEVER been anything I go by AS an affiliate. I ignore all that crap.
    Same here. It's actually something that would positively put me off: I wouldn't want to be promoting something to my subscribers which large numbers of other affiliates, incentivized by the possibility of prize money, are also promoting to theirs.

    Originally Posted by TiffanyLambert View Post

    If you're an affiliate, are there certain things that impressed the hell out of you in terms of prize strategies?
    Nope. Call me a miserable, churlish skepchick, but any "prize strategy" is probably going to put me off the product.

    And though I'm not - and never have been - a vendor, it really wouldn't be how I'd want my affiliates to be incentivized, either.

    I'm not suggesting that it doesn't work, needless to say.

    I see, of course, that it may have great financial advantages, and I'm not for a moment suggesting that you shouldn't want John Chow as an affiliate, if he's interested, Tiff.

    I know that your product will be massively successful, with or without him. And good luck!
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    • Profile picture of the author JohnMcCabe
      From what I've seen, there are two approaches.

      The first is one WillR put out there - cash rules, and the more the better.

      The other is status, like the Frank Kern (I believe) 'win my car' promotion. Amongst Frank's inner circle and wannabe inner circle, the bragging rights that go with owning and driving Frank's car looked to be more motivating than simple cash prizes.

      Even Napolean Bonaparte once said something to the effect that men who could not be bought would risk life and limb for shiny bits of ribbon...
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  • Profile picture of the author TiffanyLambert
    Well poo! Alexa I didn't think of it like that. Hmm. I know it's a turn off for me personally. Now you've gone and made me totally rethink my process!

    John, really? I completely believe you but give me cold hard cash ANY day over driving Kern's car. LOL!

    Is that a guy thing I wonder? I don't think women get off on that kind of stuff as much, but I could be wrong.
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by TiffanyLambert View Post

      Well poo! Alexa I didn't think of it like that. Hmm. I know it's a turn off for me personally. Now you've gone and made me totally rethink my process!
      Eew, well, sorry - I wasn't trying to say "Think again" ... and to be fair, my perspectives probably come from not being in the niche at all, anyway (that's to say, the things that make that my perspective are probably partly the same things that make me not be in this kind of niche ). Which probably makes my perspective less relevant than those of others anyway? :confused:

      Originally Posted by TiffanyLambert View Post

      John, really? I completely believe you but give me cold hard cash ANY day over driving Kern's car. LOL!
      Me also ... if I did these. I'm happy with my car and I'm guessing (though possibly I do him an injustice, here) that Frank's car is probably one that won't go over the speed-bumps in my street without grinding the exhaust on them, too.

      Originally Posted by TiffanyLambert View Post

      Is that a guy thing I wonder? I don't think women get off on that kind of stuff as much, but I could be wrong.
      I don't think you're wrong at all!
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      • Profile picture of the author JohnMcCabe
        Originally Posted by TiffanyLambert View Post

        Well poo! Alexa I didn't think of it like that. Hmm. I know it's a turn off for me personally. Now you've gone and made me totally rethink my process!

        John, really? I completely believe you but give me cold hard cash ANY day over driving Kern's car. LOL!

        Is that a guy thing I wonder? I don't think women get off on that kind of stuff as much, but I could be wrong.
        It's not even a 'guy thing' per se.

        In this example, the major pool of affiliates were marketers that pretty much idolized Kern, as well as some of his contemporaries. Within the group, that car was a pretty heady status symbol.

        I've met women who could be extremely competitive if the prize was right. In company settings, for example, I've watched both men and women go hard to win a parking space near the office door for a month. Add a sign that said "Salesperson of the month", and stand back.

        Or look at sports. Guys (and gals) making millions of dollars a year will kill themselves to get a ring worth a few thousand dollars. But that ring means that, for that year in that sport, they were the absolute best.

        It isn't so much the reward as what it means to the group competing for it. Status within the herd is a powerful motivator. You just have to figure out what in your particular group of affiliates confers that kind of status.
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