19 {{ upvoteCount | shortNum }}
19 {{ upvoteCount | shortNum }}

Is 40% commission too risky for a young brand to stark off an affiliate program

by curve soul
17 replies
Hello everyone, we are a plus size fashion brand! Because our brand is relatively new, and we have never done affiliate marketing before. So our commission rate is 40%. Would this be too risky?
#40% #affiliate #brand #commission #program #risky #stark #young
  • Profile picture of the author Kay King
    I'm not sure anyone here can tell you what is 'too risky' for your brand. Can you afford to pay 40% - does that keep you in a popular price range or within the price range you are aiming for? More significantly - does it keep you in profit? In a google search for clothing affiliate programs, it seems the most common affiliate share is 10-20% on clothing brands.



    Have you analyzed whether paying 40% to affiliates is better for your bottom line than a lower percentage and more money for ads?
    Signature
    Saving one dog will not change the world - but the world changes forever for that one dog
    ***
    "Rescued" does not mean they are damaged. It means they have been let down by Humans.
    {{ DiscussionBoard.errors[11764557].message }}
  • Profile picture of the author dave_hermansen
    Kay is giving you excellent advice. Think of it ... if you are looking for an affiliate program for clothing (especially plus size) and one company is paying 25% and the rest are paying 10-20%, which are you going to lean toward as your go-to recommendation?

    I wouldn't offer more than 5-10% over the norm to get your brand out there.

    And yes, what you "save" can be re-directed toward Facebook and/or Google Shopping ads.
    Signature
    StoreCoach.com - FREE TRAINING - Learn How to Build Your Own eCommerce Website
    My PROVEN ecommerce process, as seen on: Fox Business News, the NY Times & Flippa
    {{ DiscussionBoard.errors[11764594].message }}
  • Profile picture of the author Jamell
    I would say that it depends on the cost to produce your product and the profit margins .
    {{ DiscussionBoard.errors[11764596].message }}
  • Profile picture of the author Moodesburn1977
    I would say 40% is too high, i think someone would jump at the chance of 40% commisions, but u dont want it to be low like 5%, but you want to come accross that this is a good opportunity to be fair, i think 20% commision rate would be great for someone joining plus you get the other 80% so it would be a win win for affiliate and owner(you), i hope this helps.
    Signature

    Lets build a online business by giving value and learning how to build a email list
    https://davidmitchell1977.systeme.io/givevalueonwarrior

    {{ DiscussionBoard.errors[11764630].message }}
    • Profile picture of the author kamika2
      I completely agree with your assessment of "Unveiling the Depths of Creativity. thanks, Moodesburn
      {{ DiscussionBoard.errors[11766803].message }}
  • Profile picture of the author spartan14
    Well i think 40% for a psihical product its to much as it involve too many risks . Maybe you think that a lot of affiliates would jump to promote your products ,this can be true
    But you can wake up that you get more loss than profit
    If almost everybody make a percent of comisions ranging from 5% to 10% or a little bit more then i think you should stick in that range
    Signature

    Admin note: Affiliate links are not allowed in paid user sigs

    {{ DiscussionBoard.errors[11764715].message }}
  • Profile picture of the author Kay King
    Advice is so much more helpful if you stay on the forum long enough to read it....just saying....
    Signature
    Saving one dog will not change the world - but the world changes forever for that one dog
    ***
    I don't like making plans for the day because then the word 'premeditated' gets thrown around in the courtroom...
    {{ DiscussionBoard.errors[11764737].message }}
  • Profile picture of the author Jason Kanigan
    Not only is 40% commission high, there's a more important question. Who is seeing the offer?

    If people don't know your offer exists, they can't take you up on it. So how will you work towards getting the right affiliates to see your offer and sign up to represent you for that commission?

    I will warn you that most affiliates do nothing. They sign up but they don't have a list. Some have a lot of serial refunders. Only a few have a relevant list and do something.
    Signature
    >> How To Grow Your Online Business [FREE Training Video, No Opt-In, from 10+ Year Vet]

    >> For Agency Founders: The Fast Shortcut To Selling SEO, Leadgen, Webdesign & Other Services
    {{ DiscussionBoard.errors[11764773].message }}
    • Profile picture of the author Claude Whitacre
      Originally Posted by Jason Kanigan View Post

      Not only is 40% commission high, there's a more important question. Who is seeing the offer?
      That's the key. Far better to make sure the items are in demand, the marketing is in place, and the catalog is easy to use.

      Yeah, 40% is way too high for real items. Amazon pays about 5% affiliate commission on many items.

      The catalog needs to be very profitable way before you think of affiliates. 40% of nothing, is still nothing.

      If I saw an affiliate offer for 40% on clothing, my first thought was that the item were way overpriced.

      With affiliates, you still need to pay for the items sold, handle shipments, handle returns, and customer complaints.

      If you pay a commission, and the item is returned, do you ask for the commission back? Good luck.
      Signature
      One Call Closing book https://www.amazon.com/One-Call-Clos...=1527788418&sr

      What if they're not stars? What if they are holes poked in the top of a container so we can breath?
      {{ DiscussionBoard.errors[11764886].message }}
  • Profile picture of the author Princess Balestra
    Is there a negative size brand for like wraiths?

    Prolly I could write their promo.

    or jus' mebbe whispah it c/o the ethah.

    Thing is, now we all embracin' the more huggable shape as a marketin' turnstile gaht more mileage than pursoota "the fullah figure", key thing to considah is how youwaint the only FORCE strikin' out in this direction.

    Why I say this?

    Bcs you gotta decide which place in the up-&-runnin' bulgecentricity+ space you wanna occupy.

    Noo to you don't always mean noo to nowan else.

    Gonna be intrestin' to see how the Lizzo weight shame stuffs play out.

    An' I guess, bcs this is nooz kinda reveals how you gotta be pinpoint in any divergent story.

    Naht the ansa you sought?

    K, I am cool for that angle always.

    As a natchrl Yogah person I bend ovah regulah so's I can spring up again transformed.

    What is the plus size transformation story nowan else gaht?

    Brand this on yr evry %ge.
    Signature

    Lightin' fuses is for blowin' stuff togethah.

    {{ DiscussionBoard.errors[11764775].message }}
  • Profile picture of the author dave_hermansen
    Yay, more random gibberish from the "princess". So helpful (not), as usual.
    Signature
    StoreCoach.com - FREE TRAINING - Learn How to Build Your Own eCommerce Website
    My PROVEN ecommerce process, as seen on: Fox Business News, the NY Times & Flippa
    {{ DiscussionBoard.errors[11764799].message }}
    • Profile picture of the author max5ty
      Originally Posted by dave_hermansen View Post

      Yay, more random gibberish from the "princess". So helpful (not), as usual.
      I find most of her posts useful.

      As with posts from anyone, not all are helpful, but for the most part, I usually get some tips or insight from most of them.

      Princess has a unique view of things that I usually find interesting.
      {{ DiscussionBoard.errors[11765059].message }}
      • Profile picture of the author dave_hermansen
        Originally Posted by max5ty View Post

        I find most of her posts useful.

        As with posts from anyone, not all are helpful, but for the most part, I usually get some tips or insight from most of them.

        Princess has a unique view of things that I usually find interesting.
        Well, maybe it is me then. Perhaps you can translate the gibberish and tell me what the useful and pertinent part(s) of the "Princess" post on this thread was/were.
        Signature
        StoreCoach.com - FREE TRAINING - Learn How to Build Your Own eCommerce Website
        My PROVEN ecommerce process, as seen on: Fox Business News, the NY Times & Flippa
        {{ DiscussionBoard.errors[11765064].message }}
  • Profile picture of the author kamika2
    [DELETED]
    {{ DiscussionBoard.errors[11765467].message }}
  • Profile picture of the author White Pearl
    Way too much. Learn from big brands like Amazon. I am into building amazon Affiliate websites for a year now and I noticed the commission is not more than a specific percentage. 40% is too risky in my opinion.
    {{ DiscussionBoard.errors[11765533].message }}
    • Profile picture of the author dave_hermansen
      Originally Posted by White Pearl View Post

      Way too much. Learn from big brands like Amazon. I am into building amazon Affiliate websites for a year now and I noticed the commission is not more than a specific percentage. 40% is too risky in my opinion.
      "Risky"? Based on what? Do you have a clue how much markup the OP has on the product. For all you know, the markup is 200%.

      Now, it probably isn't at all wise, considering that the competition is paying significantly lower, but that is not the same thing as "risky".

      Another thing not discussed in this thread is what happen after the initial offering that pays a high commission. Do you grandfather those in at that rate who initially helped launch your product or do you risk losing them when you lower the rate to something closer to what the competition is doing? Believe me, some will be bent when you tell them that you are no longer paying 40 but have switch to 15-20%.
      Signature
      StoreCoach.com - FREE TRAINING - Learn How to Build Your Own eCommerce Website
      My PROVEN ecommerce process, as seen on: Fox Business News, the NY Times & Flippa
      {{ DiscussionBoard.errors[11765545].message }}
  • Profile picture of the author dreamhome100cr
    A 40% commission for an affiliate program can be quite high, especially for a young brand. While it might attract affiliates, it could also strain your profits. Consider your product's profit margins, competition, and overall marketing budget before finalizing the commission rate. It might be wiser to start with a lower rate and gradually increase it as the brand gains traction.
    {{ DiscussionBoard.errors[11766522].message }}
  • Profile picture of the author Randall Magwood
    It depends on what you're pricing your products at. If after a sale you pay an affiliate 40% and you're left with $20 in gross commission, are you okay with that? 40% sounds attractive, so you may get many lookers.

    If you plan on using paid advertising to promote your affiliate program, you have to consider cost per lead and cost per sale, and factor that into the costs after you acquire each new affiliate. Then you have to consider the fact that only 5% of your affiliates will account for 90% of your affiliate sales.

    So is 40% worth it? Maybe, if you don't use paid advertising to recruit new affiliates. 40% is ambitious, but you have to get them to generate sales first before you can even consider the implications of this conversation.
    Signature
    ==>> Free video reveals how to make $10k/month with affiliate marketing
    {{ DiscussionBoard.errors[11766736].message }}

Trending Topics