Affiliate marketing various profit margins

13 replies
I posted this before or so I thought but can't seem to find my thread now. Most affiliate marketing is a percentage of sales but what if your profit margins vary? Is there any marketing systems that will determine affiliate payout based upon profit margin?
#affiliate #margins #marketing #profit
  • Profile picture of the author DIABL0
    Everyone's expenses to generate conversions are going to vary.

    Someone could promote an offer and lose money, while someone else turns a large profit.

    So what you are looking for doesn't exist.
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  • Profile picture of the author spartan14
    In internet marketing its not a fix salary .It depends on too many factors like : luck ,experience ,how hard you work ,what you know ,how much you invest etc
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    • Profile picture of the author TonyRoberts
      I agree with your points here Spartan.
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  • Profile picture of the author Pedro Campos
    Originally Posted by FHDsupply View Post

    I posted this before or so I thought but can't seem to find my thread now. Most affiliate marketing is a percentage of sales but what if your profit margins vary? Is there any marketing systems that will determine affiliate payout based upon profit margin?
    Look... I`m gonna be straight with you: this isn`t the 9 to 5 job, you are not chasing a paycheck.

    If you are marketing online, you are an entrepreneur which salary is only given by yourself.

    What you have to do is try to gain some experience to then lower your cost per lead, having more profit.
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  • Profile picture of the author Frank Donovan
    Originally Posted by FHDsupply View Post

    Most affiliate marketing is a percentage of sales but what if your profit margins vary? Is there any marketing systems that will determine affiliate payout based upon profit margin?
    I don't think your question is clear, which is probably why the responses so far have focused on salaries and expenses.

    You determine affiliate payouts based on profit margins by controlling the percentage commission. You already have control over the selling price. Alternatively, you can vary the commission by product line like Amazon does.

    Is that what you meant?
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    • Profile picture of the author FHDsupply
      Yes the responses are all over the board, perhaps my question was not clear. Rather than spending literally weeks adjusting commission per product (where profit varies) I am sure there is a solution where once can calculate a percentage of total profit from a sale then pay the affiliate accordingly. Adjusting per product works great with small stores but if you are about to set 40k products online it becomes impossible.
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      • Profile picture of the author Frank Donovan
        Originally Posted by FHDsupply View Post

        Yes the responses are all over the board, perhaps my question was not clear. Rather than spending literally weeks adjusting commission per product (where profit varies) I am sure there is a solution where once can calculate a percentage of total profit from a sale then pay the affiliate accordingly. Adjusting per product works great with small stores but if you are about to set 40k products online it becomes impossible.
        Amazon has a lot more than 40k products and it uses a tiered commission structure based on product lines. It would be futile to consider having a separate commission for each individual product - not least because no affiliate is going to promote a product without knowing the commission in advance. You need to decide on a minimum affiliate commission percentage and factor that in to your profit margin - much like businesses have to do with sales tax, shipping etc.
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  • Profile picture of the author ChrisBa
    Originally Posted by FHDsupply View Post

    I posted this before or so I thought but can't seem to find my thread now. Most affiliate marketing is a percentage of sales but what if your profit margins vary? Is there any marketing systems that will determine affiliate payout based upon profit margin?
    If your profit margins are low, it's up to you as a marketer to figure out how to bring it up. It's not up to the merchant.
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  • Profile picture of the author Isaiah Jackson
    Originally Posted by FHDsupply View Post

    I posted this before or so I thought but can't seem to find my thread now. Most affiliate marketing is a percentage of sales but what if your profit margins vary? Is there any marketing systems that will determine affiliate payout based upon profit margin?
    If your profit margins are low its your job to fix it.

    Not the role of someone else.

    It is your business after all - so you got to treat it like one.

    Isaiah
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  • The profit always varies when it comes to affiliate marketing income but you have control over your earnings if you know how to properly market a product-- no matter how low or huge the payout is.
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  • Profile picture of the author Debbie Kim
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    Profits always change when you earn affiliate marketing income but you can monitor and control your own if you know how to market your products right - a long-term plan to find your way. Best for affiliate
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  • Profile picture of the author DABK
    I am taking your question to mean that you, as an affiliate, get paid the same percentage of the sale price of an item, no matter how much the sale cost you and you'd like to find an affiliate program where the payout to you is based on your profit too.

    Put yourself into the product owner's shoes:
    You're paying 20% of the sale price, which is $20. So each affiliate gets $4/sale.

    Affiliate #1 has to spend $1 to make 1 sale, in other words, affiliate #1 makes $3 in profit per sale.

    Affiliate #2 has to spend $2 to make 1 sale, in other words, affiliate #1 makes $1 in profit per sale.

    Question #1: why is the product owner's problem that affiliate #2 is not as good at promoting as affiliate #1?

    Question #2: how would the product owner know how much it costs an affiliate to make a sale? If such a system existed, a lot of affiliates would say, I had to spend $40 to sell your $20 product. You now me $44.

    The way it makes sense, the affiliate chooses to promote products that produce a commission fee the affiliate likes. If the affiliate does not like the commission, the affiliate finds another product to promote, one that produces such commission or the affiliate improves his/her game so that the commission goes up to the desired level.

    Originally Posted by FHDsupply View Post

    I posted this before or so I thought but can't seem to find my thread now. Most affiliate marketing is a percentage of sales but what if your profit margins vary? Is there any marketing systems that will determine affiliate payout based upon profit margin?
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    • Profile picture of the author pawandave
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      If move on a bit, you will find out yes, it is varied but all depend on you. Look some cheap way or free way to get sell and your profit margin increase...

      I don't know any network that pay on the basis of profit margin and it is not workable model..
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