Is $25,000 Too Much For A Prize Contest???

20 replies
Hey Guys,

I'm putting together an affiliate deal for a $300 product ($120 commission on front-end + $1,500 commission on back-end) through clickbank.

Since I want my partners all fired up to support me, I'm also going to put out a prize contest.

So I'm thinking of something based on total sales:

1st - $10,000 - 100 sales minimum
2nd - $6,500 - 70 sales minimum
3rd - $4,000 - 50 sales minimum
4th - $2,500 - 30 sales minimum
5th - $1,000 - 20 sales minimum
1st - $10,000 - 100 sales minimum
10 Follow-Up Prizes - $100 each - no mimimum

Does that sound like a cracking deal to you guys?

Or is $25,000 really too much to give away?

Thanks for any tips!
#$25 #affiliate advertising #clickbank #contest #prize #prizes
  • Originally Posted by hellplates View Post

    Hey Guys,

    I'm putting together an affiliate deal for a $300 product ($120 commission on front-end + $1,500 commission on back-end) through clickbank.

    Since I want my partners all fired up to support me, I'm also going to put out a prize contest.

    So I'm thinking of something based on total sales:

    1st - $10,000 - 100 sales minimum
    2nd - $6,500 - 70 sales minimum
    3rd - $4,000 - 50 sales minimum
    4th - $2,500 - 30 sales minimum
    5th - $1,000 - 20 sales minimum
    1st - $10,000 - 100 sales minimum
    10 Follow-Up Prizes - $100 each - no mimimum

    Does that sound like a cracking deal to you guys?

    Or is $25,000 really too much to give away?

    Thanks for any tips!

    How ever much you want to give away is up to you. I have seen an affiliate contest that gave away a $180,000 Audi R8.

    You just need to make sure that you can get the amount of affiliates that will make your product come in with a bang.

    Remember this. 80% of your sales are made from 20% of your affiliates.
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    • Profile picture of the author hellplates
      Originally Posted by Dasilva Marketing View Post

      You just need to make sure that you can get the amount of affiliates that will make your product come in with a bang.
      thx for the feedback dasliva

      what would you advise to get a good amount of affiliates dasliva?

      i had thought of getting some "lead affiliates" on board to recruit other good names for a 2nd tier commissions. would you also recommend this approach?
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by hellplates View Post

    I'm putting together an affiliate deal for a $300 product ($120 commission on front-end
    You're aware of ClickBank's restrictions about product-pricing for vendors? (Just checking!).

    Originally Posted by hellplates View Post

    Or is $25,000 really too much to give away?
    As a ClickBank affiliate, myself, I admit that seeing the vendor doing this would almost certainly put me off selecting the product to promote. I expect that will probably be a small minority perspective, though.

    .
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    • Profile picture of the author hellplates
      Originally Posted by Alexa Smith View Post

      You're aware of ClickBank's restrictions about product-pricing for vendors? (Just checking!).
      I did read up on the pricing, but I didn't see anything unusual. They have this statement "ClickBank also defines the maximum price for a Product when a Vendor submits the Product for approval". Do you think this might be an issue for me?


      Originally Posted by Alexa Smith View Post

      As a ClickBank affiliate, myself, I admit that seeing the vendor doing this would almost certainly put me off selecting the product to promote. I expect that will probably be a small minority perspective, though.
      That's interesting, could you explain why? Is it that contests are not particularly well-thought of? I see them used a lot so I assumed affiliates like the extra bonus if they have a good list and a good response.

      Would also be good to understand what would "grab" you Alexa. What would make you jump onto a new launch?

      Thanks for all advice. Much appreciated!
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      • Profile picture of the author Alexa Smith
        Banned
        Originally Posted by hellplates View Post

        They have this statement "ClickBank also defines the maximum price for a Product when a Vendor submits the Product for approval". Do you think this might be an issue for me?
        If it's your first product (with them), I think you'll need a lot of successful persuasion and maybe some references about your previous trading elsewhere, for them to accept a first-product-price much over $50. And you're not going to get $120 affiliate commission out of that.

        They do make exceptions (or at least, they have in the past).

        Originally Posted by hellplates View Post

        That's interesting, could you explain why?
        I wrote a long post about this, some time ago, and can't now find it because I can't remember what to search for, and have changed computers since then and don't "have a link to it available".

        It's mostly "personal preference". It's not what I want to see the vendor of a product I'm promoting doing. And I prefer low-key, non-hypey very low-gravity products (which invariably convert far better for me). And I don't like promoting "what everyone else is promoting", because that just makes it unnecessarily harder for me to earn a living, if a proportion of my subscribers/visitors have seen/heard of the product before (i.e. have been exposed to it by other marketers) although of course that does sometimes happen anyway.

        Most affiliates won't think like this, about it, at all.

        But be aware that - very broadly speaking - there are "two types" of affiliates: there are the 95% who don't sell very much, and then there are the 5% (or fewer) who collectively bring in 95%+ of the affiliate-referred sales. "Having as many affiliates as possible" (which some vendors aim for), and "having as many affiliate-referred sales as possible" are two very different - and sometimes even mutually exclusive - things.

        Originally Posted by hellplates View Post

        I see them used a lot
        Yes - can't argue with that!

        Originally Posted by hellplates View Post

        What would make you jump onto a new launch?
        To be honest, probably nothing much - which I why I perhaps shouldn't have offered any opinion in the first place.

        Here's the thing: I promise my subscribers that I'll never promote anything new, because I want everything I recommend to be well-established, well-tried and well-tested. Subscribers love this and say so freely and openly. (Sorry - not what you wanted to hear!). It's one of the ways I maintain high open-rates and click-through rates. But it also makes me totally unqualified to try to "advise" you here, and maybe I shouldn't really have posted in the first place.

        .
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        • Profile picture of the author hellplates
          Originally Posted by Alexa Smith View Post

          If it's your first product (with them), I think you'll need a lot of successful persuasion and maybe some references about your previous trading elsewhere, for them to accept a first-product-price much over $50. And you're not going to get $120 affiliate commission out of that.
          is that also true for a coaching program with live webinar bootcamps over xx weeks? i thought these were normally high-ticket items of $997 etc?


          Originally Posted by Alexa Smith View Post

          Here's the thing: I promise my subscribers that I'll never promote anything new, because I want everything I recommend to be well-established, well-tried and well-tested. Subscribers love this and say so freely and openly. (Sorry - not what you wanted to hear!). It's one of the ways I maintain high open-rates and click-through rates. But it also makes me totally unqualified to try to "advise" you here, and maybe I shouldn't really have posted in the first place.

          .
          I love the honesty, and THANK YOU for a decent and realistic answer. certainly a few things for me to think about...
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  • Profile picture of the author RogozRazvan
    As long as you are making a profit on this, you can even give them a $2.000.000 yacht.

    I would focus on an actual gift (car, motorcycle, $5000 custom MacBook Pro) instead of the money, since an affiliate can always promote an offer with a higher payout.
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    • Profile picture of the author hellplates
      Originally Posted by RogozRazvan View Post

      As long as you are making a profit on this, you can even give them a $2.000.000 yacht.

      I would focus on an actual gift (car, motorcycle, $5000 custom MacBook Pro) instead of the money, since an affiliate can always promote an offer with a higher payout.
      thanks for advice RR!!

      so ... how about i buy you a $5000 custom MacBook Pro if you help me get the volume of affiliates that can deliver a big launch?!?

      just thinking out of the box if you're up for it haha!!
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  • Profile picture of the author RyanJohnson1
    Originally Posted by hellplates View Post

    Hey Guys,

    I'm putting together an affiliate deal for a $300 product ($120 commission on front-end + $1,500 commission on back-end) through clickbank.

    Since I want my partners all fired up to support me, I'm also going to put out a prize contest.

    So I'm thinking of something based on total sales:

    1st - $10,000 - 100 sales minimum
    2nd - $6,500 - 70 sales minimum
    3rd - $4,000 - 50 sales minimum
    4th - $2,500 - 30 sales minimum
    5th - $1,000 - 20 sales minimum
    1st - $10,000 - 100 sales minimum
    10 Follow-Up Prizes - $100 each - no mimimum

    Does that sound like a cracking deal to you guys?

    Or is $25,000 really too much to give away?

    Thanks for any tips!
    its going to depend on how well your $1500 backend converts and obviously how much support you get from affiliates.

    have you ever done a launch before?
    do guys that matter in your niche know you?
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    • Profile picture of the author hellplates
      Originally Posted by RyanJohnson1 View Post

      its going to depend on how well your $1500 backend converts and obviously how much support you get from affiliates.

      have you ever done a launch before?
      do guys that matter in your niche know you?
      hey ryan. thx for the comments.

      i have been involved in launches so i've got a good grounding already, but this will be the first launch that i've run myself from start to finish.

      i'm very well known in my niche, certainly in my industry. i have 20+ years of credibility. but i still need to build up the same credibility for working with affiliates who can sell my products (building my own group of affiliate partners is new).

      hence i'm here trying to get some good advice for motivating affiliates to work with me on this launch, and hopefully on a longer-term basis.

      any further advice gratefully received.
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  • Profile picture of the author Tom Addams
    Not too much at all, no.

    You have to think of how many more affiliates this will earn you.

    Money is usually the best incentive, but it's also one of the least attractive from a promotional point of view.

    For instance...

    A) You have promo material for $25K

    B) Promo material for a boat, a car, etc

    B is a juicier one to market. You can give the winner the option to have any of the mentioned items OR $25K.

    GRM
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    I Coach: Learn More | My Latest WF Thread: Dead Domains/ Passive Traffic

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  • Profile picture of the author ViceHood
    What's the product? PM me the link!
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    • Profile picture of the author hellplates
      Originally Posted by ViceHood View Post

      What's the product? PM me the link!
      just PM'd you...
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  • Profile picture of the author Luke Dennison
    I imagine that the refund rates will be high for that product, especially if you're using Clickbank as the vendor.

    It's up to you, but I think that this is a long shot.
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    • Profile picture of the author hellplates
      Originally Posted by Luke Dennison View Post

      I imagine that the refund rates will be high for that product, especially if you're using Clickbank as the vendor.

      thx for the response luke.

      It's up to you, but I think that this is a long shot.
      I'm getting the impression from this thread that clickbank is more for low-value digitally delivered products. perhaps not for $300 coaching bootcamps with a big goal being delivered for members at the end of the training. i guess that's why you're suggesting the refund rates would be high (if i understand your answer correctly)?
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  • Profile picture of the author Raydal
    I've never seen an affiliate competition based on the number
    of sales made in order to qualify. The person who makes
    the most sales gets the first prize, second most, second prize etc.

    So affiliates are not only competing with each other but also
    a benchmark you have set up. That's not the best incentive
    in my opinion. You haven't mentioned the % affiliate commission
    as that would be an important factor as well.

    -Ray Edwards
    Signature
    The most powerful and concentrated copywriting training online today bar none! Autoresponder Writing Email SECRETS
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    • Profile picture of the author hellplates
      Originally Posted by Raydal View Post

      I've never seen an affiliate competition based on the number
      of sales made in order to qualify. The person who makes
      the most sales gets the first prize, second most, second prize etc.

      So affiliates are not only competing with each other but also
      a benchmark you have set up. That's not the best incentive
      in my opinion. You haven't mentioned the % affiliate commission
      as that would be an important factor as well.

      -Ray Edwards
      hey thanks for the feedback ray.

      you make a good point. i copied the approach of using "minimum sales" from some other IM guys affiliate models that I researched. i liked the idea of building in a bit of expectation/motivation to reach a number of sales in order to sign up some more serious affiliates - but you're right, i can see that could also put some people off.

      the commission is 40% on the front-end ($300 product / $120 commission). then fixed amount on the later up-sell ($500) and cross-sell ($1000).
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  • Profile picture of the author Tom Addams
    Most affiliate competitions I've been in (and won prizes from) have kept it simple:

    Every sale you send gets you 1 entry into the metaphorical hat. The more entries you have, the more chance you have at a prize. The prizes are then chosen at random, but obviously, if you have 10,897 entries, you stand more chance of winning than the guy with 3.

    Then there are some affiliate programs who just surprise you. One morning you get a knock on the door and there's a red Corvette sat in the driveway.

    GRM
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    I Coach: Learn More | My Latest WF Thread: Dead Domains/ Passive Traffic

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    • Profile picture of the author hellplates
      Originally Posted by Get Rich Methods View Post

      Then there are some affiliate programs who just surprise you. One morning you get a knock on the door and there's a red Corvette sat in the driveway.

      GRM
      great reply GRM. that sounds like a nice approach too. in that case, the commission on the front-end offer, and the niche, should be motivating enough to the affiliate to promote the offer. and any bonus is just a nice-to-have and not really published. correct?
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    • Profile picture of the author hellplates
      Originally Posted by Get Rich Methods View Post

      Most affiliate competitions I've been in (and won prizes from) have kept it simple:

      Every sale you send gets you 1 entry into the metaphorical hat. The more entries you have, the more chance you have at a prize. The prizes are then chosen at random, but obviously, if you have 10,897 entries, you stand more chance of winning than the guy with 3.

      Then there are some affiliate programs who just surprise you. One morning you get a knock on the door and there's a red Corvette sat in the driveway.

      GRM
      Hey guys. Just a final update to close this loop.

      Great advice from everyone. What stuck was the common sense from Alexa + the top-hat approach from GRM.

      You can check out how I've put together my totally awesome offer for affiliates here if you're interested to see the final result...

      Hope you like it.

      Big Thanks again for all feedback!!

      hellplates
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