11 {{ upvoteCount | shortNum }}
11 {{ upvoteCount | shortNum }}

Best Commission to Give Affiliates?

by TemperThompson
10 replies
I can't decide on what commission I should give my affiliates for a product I'm almost done with.

They've been happy with 50% commissions from my previous product, but this time I'm selling the product to help build my list.
I want as much sales as possible, so I want to give a higher commision to my affiliates.

Here's what I'm considering...
90%
80%
70%
65%

I'm also curious about 100% commissions on JVZoo. Do they take the 5% fee from you, on top of the 100%? Or is the 5% fee taken from the affiliates' 100%?

I'm also considering giving a second tier affiliate commission, for affiliates that refer other affiliates. Is this good to do? If so, what commission rate?

I also will be giving 10-15% commission on all sales to someone that helped me work on the product.

Also, this product will be a cheaper one. Probably on a dime sale from $7 to $10 or $12.

So...
What commission should I give my affiliates?
I'm leaning most towards 70% or 80%

At 70% affiliate commission + 10% to my friend + 5% JVZoo fee... that leaves 15% left to me.
At 65%, that leaves 20% left to me. (not too bad, but will affiliates sell less?)
At 80%, that leaves 5% left to me.
At 90%, that leaves me 5% in debt with every sales (unless the 5% comes from affiliates?)

P.S. If this thread is too long, complicated, and filled with questions, please let me know. Should I split this into a few different threads?
#affiliates #commission #give #jvzoo #product
  • Profile picture of the author artflair
    If your primary outcome is to grow your list I'd go with 80-90 percent!
    Signature

    {{ DiscussionBoard.errors[8708924].message }}
  • Profile picture of the author CyberAlien
    If the entire point is to build your list, I'd offer 100% commissions. JVZoo has all the details about how 100% commissions work here: I am NOT getting 100% Commission!?!? - Powered by Kayako Resolve Help Desk Software
    {{ DiscussionBoard.errors[8708952].message }}
  • Profile picture of the author John J M
    I'd go with 90% commissions. Most affiliates will be really happy with that, and you can still make a little.
    {{ DiscussionBoard.errors[8708975].message }}
    • Profile picture of the author Michael Shook
      You don't give affiliates a commission. They earn it by working for you. If you think they will work harder for you if you pay them more, then go for a higher commission rate.

      The drawback to that is if you don't meet your goal of income and signups, then it is difficult to go back to a lower rate and have affiliates still working for you.
      Signature


      {{ DiscussionBoard.errors[8709060].message }}
  • Profile picture of the author Randall Magwood
    I'd give 100% if Clickbank would allow me too. But because the max is 75%, that's what i offer.
    Signature
    ==>> Free book reveals make money with affiliate marketing
    {{ DiscussionBoard.errors[8709061].message }}
  • Profile picture of the author cuie
    My suggestion:

    List building: 90-100%
    Frontend offer: 50–75%
    High ticket backend offer: 0–25% (you are the only one selling this probably)

    The idea is to get others == your affiliates to make the hard work and get people on your list, your front end offer supports your marketing activities and the backend offer is the one that makes you money.
    {{ DiscussionBoard.errors[8709083].message }}
    • Profile picture of the author TemperThompson
      If I gave 100% commissions, I'd be losing 10% per sale, because that's what I'm giving to my friend who's helping me with the product.

      Thank you to the person who posted the link about the JVZoo fees & how it works with 100%.

      I also noticed that after paying the 5% JVZoo fee + 2.9% paypal fee, that will be taking 7.9% out of any commission under 100%.
      I can't do 90%, as I'd be losing 7.9% of ever sale.
      Doing 80%, I'd be keeping 2.1% profits. Pretty low, but at least it's breaking even.
      At 75%, I'd be making 7.1% profits.

      So now, I'm deciding between 75% and 80%.
      The affiliates were happy with 50% on my last products, so this should be great. But, what's your opinion?

      If it matters, I'm in the Kindle niche, and the main affiliate I'll be working with is Bill Platt. Probably Sam England & Rob Howard as well.

      Hopefully I can figure out something good to do for a OTO, and that's where I can make my money.
      Signature

      [ATTENTION AFFILIATES:] Want to earn 100% commission on a powerful Kindle offer converting at over 20%? Go check out my JV page here:
      http://temperthompson.com/affiliates...ndle-promo-jv/

      Any questions at all? Feel free to send me a message.

      {{ DiscussionBoard.errors[8709241].message }}
      • Profile picture of the author James Foster
        Originally Posted by TemperThompson View Post

        If I gave 100% commissions, I'd be losing 10% per sale.
        This is called a loss lead and it's a perfectly normal and very lucrative business practice if you do it right.

        The people who are willing to do it make a killing because most people aren't willing to do it - or don't understand how.
        {{ DiscussionBoard.errors[8709343].message }}
        • Profile picture of the author vrilstain
          If your product is really useful and worth every penny, then calculate from 25-50%.

          With the commission of 90% it will create a negative image of values. It is psychology.
          {{ DiscussionBoard.errors[8711392].message }}
  • Profile picture of the author James Foster
    You're focused on the wrong part of your business.

    If you have a good BACK-END in place, you can and SHOULD give away 100% of the front end so you can get as many affiliates to promote you as possible.

    The front end is merely a list builder (using quality products of course), so your main focus should be getting as many people to buy them as possible.

    The way you're going to get the most people to buy (assuming you have a good sales letter) is to have as many possible affiliates to promote - you get those affiliates by giving away as much of the commission as possible.
    {{ DiscussionBoard.errors[8709325].message }}

Trending Topics