How do vendors put up large cash prizes to attract quality affiliates?

5 replies
I've looked around and even reached out to product vendors for clarify on this as it seems to never be discussed. Vendors often put out JV pages with big cash prizes in order to attract quality affiliates for a launch but it is unclear how the prize incentives are backed for the contests. Does it come out of the vendors own pockets as part of the cost factored into launch promotion or backed by sponsors that invest in the Internet Marketer? Some contests have a minimum sales require which kinda makes sense as the vendor would have gotten paid and therefore gives the winners their cut. Looking through many JV pages it seems many of them have no minimum sales required so I don't know if that is just a sure thing for those sellers because of a proven track record? I'm also curious and this is never talked about in any training I've taken on product creation or affiliate marketing but if an a new vendor launches a product how can they attract quality affiliates to a launch if they don't have enticing big cash rewards on their JV page? Unless the vendor has something to provide of value such as quality launch bonuses who can a new vendor be successful out of the gate?
#affiliates #attract #cash #large #prizes #put #quality #vendors
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  • Profile picture of the author superowid
    It's only a game! The winners are mostly their own "best friends". It's a way to attract more affiliates. It's as simple as that. Just a simple old "jurassic-time" marketing trick in the off-line market. People always do that and will still do that.

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    • Profile picture of the author TenaciousGrease
      Originally Posted by superowid View Post

      It's only a game! The winners are mostly their own "best friends".

      Or, you know, the winners could be the ones that sold the most...

      But hey, what do I know

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  • Profile picture of the author MSutton
    Originally Posted by kayolhope View Post

    Does it come out of the vendors own pockets

    Assuming they really are paying the money to a real winner, yes, it is a marketing/advertising cost that comes out of their pocket. Of course, there may be cases where someone else is ponying up all or part of the money, but usually it's just an investment in marketing by they business owner.

    It's the same thing with product giveaways from retailers. Yes, it costs money, but it's advertising. Example, I put up a new retail site selling 3D printers and I want to get exposure. So I start a giveaway and post it to as many places as I can like reddit, FB, etc, etc, etc. Sure, I lose $XXX on the cost of the printer + shipping, but I also get people to see I'm open for business. If my site has what they are looking for with the prices they are looking to pay and I can convey that I am legit and trustworthy, I will probably get sales from the exposure the giveaway brought me. Or at least people might start talking about me on other sites and maybe linking to my store. But if I'm are charging higher prices than everyone else with no added value, it would be a waste of money, of course. People will enter the contest to win the printer, but they or anyone else will likely never buy from me.

    But yes, it is merely a marketing tactic and expense. Gotta spend some to make some...usually.
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  • Profile picture of the author bob33229
    Who makes them most money, gets the money!

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  • Profile picture of the author Haris Tahic
    They put a minimum number of sales required for every tier, and what they actually do, they just increase the winners commision percentage by giving them additional cash from what they brought to them through sales.
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