Is This A Turn Off For Affiliates...

by dreck
11 replies
I have a frontend product that will cost $1 for a trial then $XX later on. I will probably offer 60% commission.

I only want to give commission for the $XX. Is it a turn off for affiliates if I do not give commissions for the $1 trial?
#affiliates #turn
  • Profile picture of the author nicholasb
    I personally wouldn't mind about the dollar, as long as the commission later on was fair. As an affiliate I do like to see higher upsells in the $XX, $XXX and even $XXXX range
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  • Profile picture of the author nicolasmd2112
    It's not a turn off at all. as long as the back end product commission is worth it, it should be fine.




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  • Profile picture of the author Trey Morgan
    No big deal man. Nobody is gonna sweat a dollar bro.
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  • Profile picture of the author Sid Hale
    Apparently not for some (see above), but...

    how many really serious affiliates do you expect to recruit?

    Think about it... you're expecting them to send their traffic to your sales page. You convert those leads to sales with a low-end trial offer, and the affiliate has no way of knowing that their leads wound up buying. Many of them may cancel after the trial period - but for those that DO wind up paying the full product price what assurance does an affiliate have that you have tracked which affiliate was responsible for that lead?

    You may have sales software that tracks who the original referrer was - but how does a potential affiliate know that you have that ability? Are they potentially just giving you their buyers list?
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  • Profile picture of the author enterprisemind
    In this type of setup, I usually see affiliates getting paid if the buyer lead keeps the trial offer for a certain amount of time. Are you looking to only pay affiliates if the buyer lead later upgrades or do they eventually get paid either way?
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  • Profile picture of the author Randall Magwood
    Originally Posted by dreck View Post

    I have a frontend product that will cost $1 for a trial then later on. I will probably offer 60% commission.

    I only want to give commission for the . Is it a turn off for affiliates if I do not give commissions for the $1 trial?
    60% commission for $1. I'm sure they won't be mad about 60 cents. Just tell them upfront what the deal is, and those that accept it - roll with them. Those that don't, just replace them with more who will accept it.

    Run your business the way you want to run YOUR business.
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  • Profile picture of the author Samuel Gilbert
    For just a dollar?? You're good to go as long as the back end commission is reasonable. Just tell them upfront like Randall said
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  • Profile picture of the author DIABL0
    The majority of what I do is outside of IM/MMO.

    Typically an advertiser that is offering a trial fronts the payout for it, because they know what their back-end numbers are and what a trial is going to be worth to them long term.

    Diet and ecig offers are what first come to mind. Just pay shipping and handling and the offer pays out like $60-$80.

    That's what I have come to expect, so I would have issues with your offer.
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    • Profile picture of the author jasondinner
      Originally Posted by DIABL0 View Post

      The majority of what I do is outside of IM/MMO.

      Typically an advertiser that is offering a trial fronts the payout for it, because they know what their back-end numbers are and what a trial is going to be worth to them long term.

      Diet and ecig offers are what first come to mind. Just pay shipping and handling and the offer pays out like $60-$80.

      That's what I have come to expect, so I would have issues with your offer.
      Yeah, as an affiliate who's grown accustomed to similar type of payouts, receiving a respectable commissions on the trial offer that will make me want to send you my traffic and will also enable you to back out on the back end would be acceptable to me as well.

      And it doesn't have to be $60-80. It really depends on the offer. I moved thousands of those credit card survival knives and was more than happy to get paid $10 for every knife I moved. Then even when they couldn't back out and dropped everyone to $6 CPA, I still got it to work.

      BUT, and this is pretty much where you're at, when they finally moved to clickbank and stopped offering that up front CPA and started paying 60% or 75% of the $4.95 shipping and also paying for the upsell, it became not worth it for serious affiliates like myself who can move volume.

      So depends on what kind of affiliate you want - if you get any.

      Do you want 500 little guys who will be happy to get whatever they can and make you small money or 10-20 super affiliates who can move so many units of anything you will run into major cash flow issues if you don't cap them? lol

      Other factors that you should pay close attention to is what network you will be using as the network and the type of affiliates they have in there running traffic to that network's offers can and should influence how you position your offer to affiliates.

      For example, Clickbank and JV Zoo affiliates are more accustomed to getting paid a high % of every sale throughout the funnel (at least 75%) whereas Clickbooth and Max Boutny affiliates are used to getting paid generously one time for the front end sale no matter how many products the customer they sent buys or doesn't buy throughout the funnel.
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  • Profile picture of the author Path Theory
    That's not how I'd recommend you doing it. If you want serious affiliates, you need to get your numbers together and find out what you're willing to pay them.

    You shouldn't be paying the affiliate "If" the person continues with the trial, you should be paying them for every single sale. Here's some real world numbers from being a product owner, and a major affiliate in the diet market.

    Every customer I convert I make $35-$45 per sale (Usually X2 since there's a step 2 cleanse to go with it). These people are paying $4.99 for shipping.

    The product owner knows that on average, after chargebacks, returns and immediate refunds, 60% of people are going to get rebilled on day 15. They also know that the average customer lifespan is 1.2 months. Depending on the cost of the monthly subscription, it usually comes out to about $115 lifetime customer value.

    That is the reason they're able to pay $45 per trial - After all the fees and acquisition costs, they're still making decent roi on the 60% of people that rebill. They just have to have enough in reserves to deal with the tail. Starting out is tough in this business, but it's very profitable.

    This is a proven method, in a multi billion dollar industry. You need to find out the average rebill rate, and what the average customer is worth. Than you can figure out what you can pay to attract the real affiliates. $35 on a $1 trial offer? It's a no brainier for us.

    Edit to Add - There's a few networks that deduct commissions if a customer gets a refund or a chargeback - Don't do that - All of that should be figured into your average rebill rate.
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    • Profile picture of the author kevineverett
      You need to know your numbers. There needs to be a proven EPC (earnings per click) and a low refund rate for an affiliate to be interested. If a sales funnel can demonstrate a good EPC regardless of how many upsell takers there are, the affiliate will not be bothered about not getting paid on the front-end. All they will be concerned with is 'how much can I earn for every click I send you?'

      You MUST know your numbers and be able to show evidence of this.
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