Would $20 Commission Attract Affiliates?

[Dan C. Rinnert]

I have a product I'm getting ready to offer through ClickBank. I know a lot of advice is to offer a 75% commission, but I am curious if a 60% commission would be enough to attract affiliates.

I am figuring on a price of $37. At 60%, that would give affiliates $20.54. I remember reading that many people around here look for a minimum of $20 before they'll promote something. This would meet that minimum.

The reason I don't want to go with 75% is that I'd like to reserve that commission rate for JV or other promotions.

[Vanquish]

the higher the % pay out, the more affiliates you will get. would you rather promote someones product that makes you $20 per sale or $27?

[LavelleC]

Just wanted to mention that referral conversions are really, really important too.

Lavelle

[Marhelper]

I prefer higher pay outs personally but would consider if the product was top notch and the conversion rate was real good.

[SmartTeenager]

Having 100 people getting 75% is more profitable for you then 10 getting 60% Higher the % the more people it will attract.

-Smart Teenager

[Dan C. Rinnert]

Originally Posted by Vanquish

the higher the % pay out, the more affiliates you will get. would you rather promote someones product that makes you $20 per sale or $27?

Originally Posted by SmartTeenager

Having 100 people getting 75% is more profitable for you then 10 getting 60% Higher the % the more people it will attract.

If I have 100 affiliates at 60% and each one makes a sale, I would earn $1,318.05.

If I have 100 affiliates at 75% and each one makes a sale, I would earn $805.05.

I would need to have 160 affiliates at 75% to earn the same as 100 affiliates at 60%, using one sale per each as a baseline.

Would the extra $5.13 ($20.54 at 60% vs. $25.67 at 75%) in commission attract 60% more affiliates? In other figures, would a 25% increase in the commission attract 60% more affiliates?

Originally Posted by LavelleC

Just wanted to mention that referral conversions are really, really important too.

Alternatively, would that extra $5.13 attract affiliates capable of bringing in 60% more sales than I would get at the 60% commission level?

[Paid Surveys]

My personal view is that the commision matters less than the potential conversion rate. 60% is still a great comission level but want i want to know is whether the product will sell. What you could do is to offer 60% initially for the first 30 referrals and any after this would attract a higher rate of 75%. That way you maximising your profits for the occasional sale, but benefiting from bulk sales channels of those who can provide you with volume conversions. It also makes the publisher work harder to achieve a larger number of referrals.

[dlwebb610]

I a word: YES

[Paul Myers]

Dan,

You have to present compelling reasons to promote your product. The single biggest one for most experienced affiliates is the earnings per click. Suppose you pay $5 commissions on a product that converts at 25%, and someone else pays $50 commissions on a product that converts at 2%.

EPC on the first offer is 25% higher than on the second. You're going to win that war.

That is assuming the affiliate can't increase their own conversion rates on your product, which is possible for many of the better ones. You also have to figure in the refund rate, which will typically be lower (often MUCH lower) for less expensive products.


Paul

[melanied]

$20 is the minimum I do look for when deciding on products to promote, but I have to say - if there's a product that offers 60% and a product that offers 75% commissions - even if the difference is only in that $5 range per sale - I trust the person offering the higher percentage - it's a gut reaction.

Emotionally, it makes me feel they value their affiliates more.

[Stefan Vee]

I personally never look at the percentage.
20 bucks or more ... and that's it for me, providing the sales page converts really well

[AntonioSeegars1]

20 bucks is good for most people starting out. But if you have something to upsell that will bring in even more profit after customers purchase your orginial item you can attract the big markerters.

[Saint117]

Good points Dan. I personally wouldnt care if you only offered a 60% as opposed to a 75% if I personally think your product would sell.

I would want a higher payout for a product thats harder to sell. So really I think it boils down to this. How much work are your affiliates going to put into selling this product? Do you think they deserve that extra 5 bucks?

Originally Posted by Dan C. Rinnert

If I have 100 affiliates at 60% and each one makes a sale, I would earn $1,318.05.

If I have 100 affiliates at 75% and each one makes a sale, I would earn $805.05.

I would need to have 160 affiliates at 75% to earn the same as 100 affiliates at 60%, using one sale per each as a baseline.

Would the extra $5.13 ($20.54 at 60% vs. $25.67 at 75%) in commission attract 60% more affiliates? In other figures, would a 25% increase in the commission attract 60% more affiliates?



Alternatively, would that extra $5.13 attract affiliates capable of bringing in 60% more sales than I would get at the 60% commission level?

[CanadianChickXO]

Ya $20 is the bare minimum I will consider at CB. Especially if you are using PPC to drive traffic. This make is tough to be profitable assuming 1% conv. 100 clicks at $0.15 to $0.2 per click leaves very little room . Better hope it converts well.

[Sheryl Polomka]

Originally Posted by Dan C. Rinnert

The reason I don't want to go with 75% is that I'd like to reserve that commission rate for JV or other promotions.

Just curious, if you want a higher rate especially for JVs, how do you set that up so that different affilates get different rates?

I'm about to launch a product through Clickbank, but I have no idea how you can do it so some affiliates have a higher rate than the general commission percentage.

[Dan C. Rinnert]

Originally Posted by melanied

$20 is the minimum I do look for when deciding on products to promote, but I have to say - if there's a product that offers 60% and a product that offers 75% commissions - even if the difference is only in that $5 range per sale - I trust the person offering the higher percentage - it's a gut reaction.

Emotionally, it makes me feel they value their affiliates more.

Interesting. But how do you know that the person offering the higher percentage didn't artificially increase the price to be able to offer the higher percentage and still meet his profit goals for the product?

Originally Posted by Paul Myers

You have to present compelling reasons to promote your product. The single biggest one for most experienced affiliates is the earnings per click. Suppose you pay $5 commissions on a product that converts at 25%, and someone else pays $50 commissions on a product that converts at 2%.

EPC on the first offer is 25% higher than on the second. You're going to win that war.

That is assuming the affiliate can't increase their own conversion rates on your product, which is possible for many of the better ones. You also have to figure in the refund rate, which will typically be lower (often MUCH lower) for less expensive products.

That's the great unknown. I don't know what the conversion rate will be. In the past, I've been able to hit anywhere from 8% to maybe around 30% conversion rates. That was in a completely different niche, but I hope that my efforts would adapt to this niche as well.

I think it would be a great product, and one that would complement a variety of other products, such that affiliates (those with lists anyway) could offer this as something that would be beneficial to buyers of other products they've promoted.

Originally Posted by Sheryl Polomka

Just curious, if you want a higher rate especially for JVs, how do you set that up so that different affilates get different rates?

I'm about to launch a product through Clickbank, but I have no idea how you can do it so some affiliates have a higher rate than the general commission percentage.

What I've heard is that you set up a separate account with Clickbank for the product, offer the higher commission rate and then do not have it listed in the marketplace. Then, you would just give those selected affiliates that URL.

I don't know how (or if) that method will work now that Clickbank does link cloaking.

[WarriorNY]

Nobody cares about the % payout. It all comes down to what the $ earnings are.

[LB]

Years ago I started all my CB products around the 30% rate then a competitor would move in, rip off my idea and offer 55%...and then I would up it etc. etc. and we'd both hit 75% quickly.

You should start at 75, it will help you control the market and people will be more willing to promote. The extra money you would have earned at 60% will even out with the efforts of affiliates who want that 75%.

I would offer 100% if CB allowed it and score on the backend if I could.

[Allen Graves]

Dan,

Just get it approved and running at 60%. Then, after a few baseline days/weeks, up it to 75% and see if you notice the differences described in some of the informative posts above. This will also give you time to figure out your clicks per sale and other ratios you will need to inform and attract the super affiliates.

Just a thought.

AL

[tommygadget]

Originally Posted by Allen Graves

Dan,

Just get it approved and running at 60%. Then, after a few baseline days/weeks, up it to 75% and see if you notice the differences described in some of the informative posts above. This will also give you time to figure out your clicks per sale and other ratios you will need to inform and attract the super affiliates.

Just a thought.

AL

Ahhh... you beat me to it. It just doesn't matter what we think. It matters what the market thinks. Test, test, test, test... Oh, did I say test? Yep, I did.

TomG.