Nutrition Supplement Business Affiliate Payment Structure

by pkcars
4 replies
Guys,

First post here...We have been in the Nutrition Supplement industry for about a couple of years now. Originally, we just had a brick and motor store location with a few retail outlets. Now we are scaling up and would like to target a larger audience, hence setting up an ecommerce store for the different supplements and a few landing pages for a couple of our hot selling products.

With our two hot selling supplements, we intend to set up a 'Free Trial-Offer' promotion (2-weeks) just in order to attract more traffic to our site. The Free Trial offer would eventually lead to subscription billing, ONLY with the consent of the online shopper. We want to make it 100% legal and adhere to the strict FTC Rules regarding the Negative Option Billing.

The question I have is, with the Negative Option Billing, how is the Affiliate Marketing commission payment structured? Meaning after the conversion, will the affiliate commission be placed on hold until the 'Free-Trial offer' period is over and the shopper is actually enrolled into subscription billing? Or is a partial commission supposed to be released upon the Free Trial Offer sign up then the rest paid with each month's subscription billing?

Our ultimate goal is to generate the most amount of traffic to our two landing pages.

Thanks

-PK
#affiliate #business #nutrition #payment #structure #supplement
  • Profile picture of the author DIABL0
    Every free trial I have ever promoted, regardless what the product was, I have received full credit upon the conversion and I was still paid regardless if it was returned or not.

    However, you can set it up differently, but I personally wouldn't promote a free trial otherwise.
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  • Profile picture of the author Regional Warrior
    The norm for the first post was to say hi and introduce your self !! that way you get some cred about who you are , all i will say be careful who PMs you with offers
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  • Profile picture of the author agmccall
    If an affiliate sends you a lead, you should pay them for the lead as well as commission on subsequent sales. Just because it is a FREE trial, you have still captured the email address of the potential customer and the affiliate has probably spent time and money promoting the offer.

    As far as how payments are set up and structured, it is up to you. But, I would probably pay a small commission for the free trial and then a commission on the sale. If the affiliate sees as they might not get paid they would probably be reluctant to promote your products. Remember, they are a business just like you

    al
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    • Profile picture of the author pkcars
      Great to know. After the 2-week free trial, the product's subscription billing will be $59.99. With this asking price, plus considering the industry, what is an acceptable commission that would make us stand out from the competition? Rather, what would it take to make the affiliates run an aggressive campaign for us?
      Thank you very much for your response.
      Originally Posted by DIABL0 View Post

      Every free trial I have ever promoted, regardless what the product was, I have received full credit upon the conversion and I was still paid regardless if it was returned or not.

      However, you can set it up differently, but I personally wouldn't promote a free trial otherwise.

      Ha ha. I have been on this forum for about 4 years now. Just never posted anything before. Thank you very much for the PMs heads up.
      Originally Posted by Regional Warrior View Post

      The norm for the first post was to say hi and introduce your self !! that way you get some cred about who you are , all i will say be careful who PMs you with offers

      Yes! I totally understand that. Thank you very much for your feedback.
      Originally Posted by agmccall View Post

      If an affiliate sends you a lead, you should pay them for the lead as well as commission on subsequent sales. Just because it is a FREE trial, you have still captured the email address of the potential customer and the affiliate has probably spent time and money promoting the offer.

      As far as how payments are set up and structured, it is up to you. But, I would probably pay a small commission for the free trial and then a commission on the sale. If the affiliate sees as they might not get paid they would probably be reluctant to promote your products. Remember, they are a business just like you

      al
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