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How much is a fair affiliate commission?

by Luxoria
15 replies
I operate a website that sells products that I make. How much would be a fair commission if I were to start an affiliate program?

Here is my website: Lighted Wall Art & LED Backlit Signs, Neon Alternative
#affiliate #commission #fair
  • Profile picture of the author noababy
    what is your price range? maybe 40%-50%, its depends
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  • Profile picture of the author healthlabs
    A lot of factors go into this starting with the product cost itself, then the margins you need per item to be profitable, and lastly what will make your offer attractive go get affiliates to promote your product instead of something else.
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  • Profile picture of the author Ross Petal
    To attract good Affiliates, you should give at least 50% commission. They will be putting their time and effort so it makes sense to reward them accordingly.
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  • Profile picture of the author TobiasThomsen
    Seeing this is physical products i would say around 10%
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  • Profile picture of the author ezcashlover
    Originally Posted by Luxoria View Post

    I operate a website that sells products that I make. How much would be a fair commission if I were to start an affiliate program?

    Here is my website: Lighted Wall Art & LED Backlit Signs, Neon Alternative
    The best way is by doing test runs,
    get some marketers to test your products and get a reviews form them, they will also advise you the best price and commission to get out of it...
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  • Profile picture of the author Sid Hale
    I hate to say it, but you only got 2 reasonable responses here.

    I guess the others didn't even bother to understand that you are selling physical products, so the production costs become a factor.

    Have you thought about listing your products on Amazon?

    If you manufacture to stock, you can ship that stock to them in bulk, and they could advertise, warehouse, and ship your products for you. In addition, they would recruit and manage affiliates for you (they already have a ton of them), so you get a built in sales force.

    Can't say for sure that this is for you, but I think you should look into it for your product line.
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    • Profile picture of the author Luxoria
      Thanks for the applicable info.
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  • Profile picture of the author TexasSteve
    The standard is 50-75%. Another strategy is to have 100% commission in return for them opting in to your email list.
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    • Profile picture of the author Sid Hale
      ^^^^ and yet another ^^^^

      Now all you have to do is figure out a way to supply your physical products as a digital download file that assembles itself automatically in the buyer's living room (or where ever he/she may be at the time) when they return to your "download" page.

      P.S. No need to ask for pricing help here, either. The answer will be $7.
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  • Profile picture of the author Amer A
    Hi Luxoria

    The standard affiliate commission is 50%

    Regards
    Amer
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    • Profile picture of the author Sid Hale
      SO WRONG!!!

      Originally Posted by Amer A View Post

      The standard affiliate commission is 50%
      The "standard" profit margin for physical goods isn't even that high - much less the commission rate.
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  • Profile picture of the author Trey Morgan
    How high would you be willing to go? It really depends on how well you're doing without affiliates and how much you can afford to giveaway. For example, if you're not making a decent amount of sales on your own then you want to attract affiliates by giving away 50-70% commissions.


    If you're doing well without affiliates then you can go as low as 10-30%.


    Since you're selling a physical product you probably have more expenses to cover than those of us who are selling digital products so it's really up to you to decide how much of a sale you're willing to give up.


    Also, you can try different commission rates out and then make changes in the future.


    To answer your question about being fair. I would say at least 30-50% would be considered fair to most affiliates.
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  • Profile picture of the author lerxtjr
    The few pieces I looked at were $65. Since they're products you produce with a margin and ship (hopefully for free shipping), my hunch is that you can only offer about 15% to affiliates and still make anything to put food on your own table. I really like the wall art, and you might get a few niche affiliates that cater to people who buy interior design work but I'm just not seeing the draw from a seasoned affiliate marketer standpoint. You might be better off trying to get your best sellers in (dare I say it) "printed" catalogs in time for Christmas shopping season.
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  • Profile picture of the author ChrisBa
    Originally Posted by Luxoria View Post

    I operate a website that sells products that I make. How much would be a fair commission if I were to start an affiliate program?

    Here is my website: Lighted Wall Art & LED Backlit Signs, Neon Alternative
    What's your profit margin?
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