What % do you pay your affiliates?

by Derek_Thomas 58 replies
I would guess the average Clickbank commission is what 75%?

What do you guys think?

Does it just depend on the selling point of the product?

Would you offer a lower % if your affiliates are paid directly, as opposed to weeks later by CB?

How does 50% sound? Would that not be worth it to you?

Anyway, I'd just love to hear your thoughts.

Thanks,
Derek
#main internet marketing discussion forum #affiliates #pay
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  • Profile picture of the author Steven Wagenheim
    Derek, with the competition today and numerous choices for affiliates, 75%
    for digital products is almost a requirement.

    However, I will personally promote a $97 product that pays me 50% over
    a $47 product that pays me 75%.

    Commission amount is just as important as affiliates need to know what
    their return is going to be.

    For physical products in the hundreds of dollars, 50% is pretty much
    the norm.

    Oddly, for many health products, regardless of price (talking physical here)
    you will see many for 30% or less.

    Really depends on who your market is and what they're used to.
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    • Profile picture of the author Derek_Thomas
      Originally Posted by Steven Wagenheim View Post

      Derek, with the competition today and numerous choices for affiliates, 75%
      for digital products is almost a requirement.

      However, I will personally promote a $97 product that pays me 50% over
      a $47 product that pays me 75%.

      Commission amount is just as important as affiliates need to know what
      their return is going to be.

      For physical products in the hundreds of dollars, 50% is pretty much
      the norm.

      Oddly, for many health products, regardless of price (talking physical here)
      you will see many for 30% or less.

      Really depends on who your market is and what they're used to.
      Thanks for the perspective Stephen. I appreciate your insight.

      I'm selling a lower priced (initially) digital product for $27, however I'm using the $7 Secrets Script meaning (1) I can pay 100% commission if I like, and (2) my affiliates are paid immediately into their PayPal.

      It is the aspect of immediate payment that caused me to question the 75% standard affiliate rate, and perhaps go for something lower.

      That being said, my product is related to Internet Marketing, so I'm sure 50% would not seem all that worthwhile.

      All the best,
      Derek
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      • Profile picture of the author Steven Wagenheim
        Originally Posted by derek.ifocus View Post

        Thanks for the perspective Stephen. I appreciate your insight.

        I'm selling a lower priced (initially) digital product for $27, however I'm using the $7 Secrets Script meaning (1) I can pay 100% commission if I like, and (2) my affiliates are paid immediately into their PayPal.

        It is the aspect of immediate payment that caused me to question the 75% standard affiliate rate, and perhaps go for something lower.

        That being said, my product is related to Internet Marketing, so I'm sure 50% would not seem all that worthwhile.

        All the best,
        Derek

        Well, if I'm not making at least $25 per sale, I don't bother. I can't speak
        for everybody else, but that's my low point.
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        • Profile picture of the author Derek_Thomas
          Originally Posted by Steven Wagenheim View Post

          Well, if I'm not making at least $25 per sale, I don't bother. I can't speak
          for everybody else, but that's my low point.
          That's very interesting Steven, and a good reference point for me.

          I'm extremely confident in the quality and uniqueness of my product, but I feel I need a little something else to raise the price much more than $27.

          Truthfully, my bottom line in all of this to have a product that attracts affiliates like you Steven.

          Thanks again for your insight.

          Derek
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          • Profile picture of the author phoenixx9000
            I give 50% no matter what the price.
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            • Profile picture of the author x3xsolxdierx3x
              Originally Posted by phoenixx9000 View Post

              I give 50% no matter what the price.
              I've never given more than 50% either...hm....I see alot of products that give 75%....does this mean, to you, that those product creators DON'T believe in their own product, think that others won't either, and therefore think that the only way they can actually sell it is by giving affiliates such a huge commission?

              If it was a GREAT product, wouldn't affiliates be banging on the door to promote it even for 50% or less...?
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              • Profile picture of the author Derek_Thomas
                Originally Posted by x3xsolxdierx3x View Post

                I've never given more than 50% either...hm....I see alot of products that give 75%....does this mean, to you, that those product creators DON'T believe in their own product, think that others won't either, and therefore think that the only way they can actually sell it is by giving affiliates such a huge commission?

                If it was a GREAT product, wouldn't affiliates be banging on the door to promote it even for 50% or less...?
                I'm tempted to give 75%, but it has nothing to do with not believing in my product.

                For me, it's that (1) there is so much competition with other products paying higher, and perhaps more importantly, (2) I'm still learning how to attract affiliates.

                Any pointers on my second concern there?

                Thanks,
                Derek
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                • Profile picture of the author psresearch
                  The only thing that typically matters is visitor value that YOU determine (not read off some EPC list, etc). The rest (commission %, $ payout) is almost always just a bunch of noise.
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                  • Profile picture of the author Derek_Thomas
                    Originally Posted by markquinn View Post

                    The only thing that typically matters is visitor value that YOU determine (not read off some EPC list, etc). The rest (commission %, $ payout) is almost always just a bunch of noise.
                    When you say "visitor value" is that in reference to the lifetime value of your customer as opposed to how many you make in the actual front end sale?

                    Thanks,
                    Derek
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                    • Profile picture of the author psresearch
                      Originally Posted by derek.ifocus View Post

                      When you say "visitor value" is that in reference to the lifetime value of your customer as opposed to how many you make in the actual front end sale?

                      Thanks,
                      Derek
                      I look at both. But MOST affiliates - especially ones buying traffic are looking at the front end. But I don't really look at lifetime unless I have a really good relationship with the vendor and can keep on top of what he's doing - or sometimes a vendor will set up a completely separate list for an affiliate so the affiliate has more control over predictability - obviously you need a strong relationship and proven sales with the vendor to be able to get them to agree to that.

                      Jonathan Mizel wrote a great article called something like "How To Own All The Traffic In Your Market" that really drives home the point of the importance of visitor value over everything else.

                      Here we go - it's called "The Unlimited Traffic Technique"

                      Terry Dean has an article about it here:

                      http://www.terrydean.org/unlimited-traffic-technique/
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                      • Profile picture of the author Derek_Thomas
                        Originally Posted by markquinn View Post

                        I look at both. But MOST affiliates - especially ones buying traffic are looking at the front end. But I don't really look at lifetime unless I have a really good relationship with the vendor and can keep on top of what he's doing - or sometimes a vendor will set up a completely separate list for an affiliate so the affiliate has more control over predictability - obviously you need a strong relationship and proven sales with the vendor to be able to get them to agree to that.

                        Jonathan Mizel wrote a great article called something like "How To Own All The Traffic In Your Market" that really drives home the point of the importance of visitor value over everything else.

                        Here we go - it's called "The Unlimited Traffic Technique"

                        Terry Dean has an article about it here:

                        Unlimited Traffic Technique : Internet Business Coaching by Terry Dean
                        Thanks for the article...I'm going to dive into that right away.

                        Derek
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                • Profile picture of the author x3xsolxdierx3x
                  Originally Posted by derek.ifocus View Post

                  I'm tempted to give 75%, but it has nothing to do with not believing in my product.

                  For me, it's that (1) there is so much competition with other products paying higher, and perhaps more importantly, (2) I'm still learning how to attract affiliates.

                  Any pointers on my second concern there?

                  Thanks,
                  Derek
                  I'm not running my product(s) through Clickbank...so, I've been hand picking, and emailing, potential affiliates. I see so many people scrapping for whatever affiliates they can get, but I personally like to pre-screen them, and make sure they aren't going to associate our product with shady marketing practices. On top of that, to some degree, I actually like to 'train' my affiliates in the best way to compelling sell the product, as well....So, I give them all a .PDF, with a bit of talking points and things to say to make the product really stand out.....
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                  • Profile picture of the author Derek_Thomas
                    Originally Posted by x3xsolxdierx3x View Post

                    I'm not running my product(s) through Clickbank...so, I've been hand picking, and emailing, potential affiliates. I see so many people scrapping for whatever affiliates they can get, but I personally like to pre-screen them, and make sure they aren't going to associate our product with shady marketing practices. On top of that, to some degree, I actually like to 'train' my affiliates in the best way to compelling sell the product, as well....So, I give them all a .PDF, with a bit of talking points and things to say to make the product really stand out.....
                    I think that is a great idea, but have been hesitant to do so. Occasionally I get random PMs with offers to promote this product or that, but usually mark it off as spam.

                    What steps do you take to personally select, or more importantly, contact your affiliates? If you don't me asking of course...perhaps we should PM?

                    Thanks for the info,
                    Derek
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                    • Profile picture of the author Derek_Thomas
                      On a similar note...

                      I am not currently promoting my product via Clickbank. I am using the $7 Secrets Script. This is great because handles all affiliate payouts immediately after sale. I never touch the money...this is good because the affiliate can trust he will get paid, and because it's less I actually have to be concerned with.

                      My question though is in regard to some of the other metrics potential affiliates may be concerned with...primarily conversion rate.

                      1. What is the simplest way to keep track of this on my own? Google Analytics + basic math skills?

                      2. How do my affiliates verify this? (Screenshots? Let me log in to my account? etc) Is this typically even an issue, or something that normally sorts itself out through the affiliates own testing?

                      Thanks for all your help everyone.

                      Derek
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                    • Profile picture of the author x3xsolxdierx3x
                      Originally Posted by derek.ifocus View Post

                      I think that is a great idea, but have been hesitant to do so. Occasionally I get random PMs with offers to promote this product or that, but usually mark it off as spam.

                      What steps do you take to personally select, or more importantly, contact your affiliates? If you don't me asking of course...perhaps we should PM?

                      Thanks for the info,
                      Derek
                      Oh, I'm fine with talking here, Derek (as opposed to PM).....I've found that it works very well just to include a an extra download with the product/package/course, that has something said about potential affilaites....

                      I'm not sure if this is what most people do, but, I decided to construct this statement for my product.....So, you can see, I afforded people an opportunity to contact me directly with regards to becoming an affiliate, but, by putting it in an extra download .PDF document, I at least hope people read some of the product, before attempting to 'sell' it....

                      Again....not sure if this is how most people approach this, but it works fairly well for us....

                      "For a variety of reasons, we have currently chosen to keep our course limited to a small handful of affiliates. While others may find it financially motivating to accept just anyone as an affiliate, we would like to ‘screen’ our affiliates prior. Not only do we want our affiliates to have read and apply our course, but we would also like for them to understand the value, and complexity, surrounding our course, as it relates to (and is applicable) wherever anyone may choose to submit content online.

                      Affiliate inquiries can be made by emailing XXXXXXXXX. If you are interested in becoming an affiliate of our course, please tell us a bit about yourself, as well as, why you believe that you would be a good match as an affiliate of our course. Among the questions that we may ask in response will be with regards to XXXXXXXXXXX. This information will not be shared with anyone. It is in our best interest, for the life of our course, to ensure that it is associated with quality of promotion techniques."
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                      • Profile picture of the author Derek_Thomas
                        Originally Posted by x3xsolxdierx3x View Post

                        This is what I do, and 50% has worked well.
                        Maybe you mentioned this earlier, but do you mind if I ask how much your product sells for?

                        By the way, thanks for the killer affiliate screening template you shared. Was that in reference to only customers who have purchased your product, or do you also give your product away to potential affiliates in hopes of soliciting their interest?

                        Thanks,
                        Derek



                        Originally Posted by x3xsolxdierx3x View Post

                        Oh, I'm fine with talking here, Derek (as opposed to PM).....I've found that it works very well just to include a an extra download with the product/package/course, that has something said about potential affilaites....

                        I'm not sure if this is what most people do, but, I decided to construct this statement for my product.....So, you can see, I afforded people an opportunity to contact me directly with regards to becoming an affiliate, but, by putting it in an extra download .PDF document, I at least hope people read some of the product, before attempting to 'sell' it....

                        Again....not sure if this is how most people approach this, but it works fairly well for us....

                        "For a variety of reasons, we have currently chosen to keep our course limited to a small handful of affiliates. While others may find it financially motivating to accept just anyone as an affiliate, we would like to ‘screen’ our affiliates prior. Not only do we want our affiliates to have read and apply our course, but we would also like for them to understand the value, and complexity, surrounding our course, as it relates to (and is applicable) wherever anyone may choose to submit content online.

                        Affiliate inquiries can be made by emailing XXXXXXXXX. If you are interested in becoming an affiliate of our course, please tell us a bit about yourself, as well as, why you believe that you would be a good match as an affiliate of our course. Among the questions that we may ask in response will be with regards to XXXXXXXXXXX. This information will not be shared with anyone. It is in our best interest, for the life of our course, to ensure that it is associated with quality of promotion techniques."
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                • Profile picture of the author dh5114
                  Originally Posted by derek.ifocus View Post

                  For me, it's that (1) there is so much competition with other products paying higher, and perhaps more importantly, (2) I'm still learning how to attract affiliates.
                  1) you're smart if you're after affiliates. IMO that's the way to go about if you have quality product.

                  2) affiliates are attracted by one thing - offers that convert. Commission percentage is also important, but it means nothing if your product isn't converting.

                  3) super affiliates won't sweat over peanuts - except if your product is converting like crazy.

                  If you really want to extend this as far as you can, then go a "bit crazy" and create a really great product, sell it for $47 or up ($67 or $97 would be much better) and let affiliates have 100% on the front end.

                  If your product is converting between 1-3% and affiliate gets $47 (or more) on each sale, let me know... :-)
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            • Profile picture of the author Derek_Thomas
              Originally Posted by phoenixx9000 View Post

              I give 50% no matter what the price.
              And how is that working for you? Are you generating a healthy # of affiliates?

              Do you sell products around the $27 range?

              Derek
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        • Profile picture of the author imon32red
          Originally Posted by Steven Wagenheim View Post

          Well, if I'm not making at least $25 per sale, I don't bother. I can't speak
          for everybody else, but that's my low point.
          Interesting Steven. I have been reading your posts for years and I enjoy what you have to say, most of the time.

          Anyways, am an affiliate for a couple products. I spend most of my time in the ebook world and have little time creating someone else money these days. My biggest problem is finding a quality product for a great price. I will pass up offers all the time because I am not sure about the product. I spent close to 15 years in the sales world. Nothing was more disheartening for me than to find out I was selling crap. I guess it just stuck with me. I really have a hard time finding products with enough value for a great price. I do not have a minimum commission threshold that I default to while searching for products. But I agree that anything less than $25 is almost not worth it.
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    • Profile picture of the author Derek_Thomas
      Originally Posted by Alexa Smith View Post

      Not possible, because 75% is the maximum.



      50% of what?! For what sort of product? :confused:

      Nobody can realistically give an "acceptable percentage" without knowing the price and preferably a little more than that, you know?

      For me, 50% of $67 or $69 qualifies for consideration. For a $47 product, I'm looking at 70%/75%, usually.
      I see. That's what I was thinking myself...that it ultimately depends on the price point of the product.

      My product is initially selling at $27.

      I'm curious...would the aspect of immediate payment directly into your PayPal entice you to settle for a lower percentage?...such as 50%?

      Thanks,
      Derek
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        • Profile picture of the author Derek_Thomas
          Originally Posted by Alexa Smith View Post

          Thanks, Derek ...

          For myself, I have a $25 threshold, really (I'll occasionally look at something that nets $22/$23 as an additional product, if it fits a niche I'm already in.

          For what it's worth, I do sometimes question this and wonder if I'm wrong not to look at products with lower earnings/sale than this, and of course I don't claim to be representative of "affiliates in general".

          That said, I wouldn't myself look at 50% of $27, not even immediately to PayPal.
          Well, if you ever do want to consider a product with lower numbers, I have a GREAT test product in mind

          I'll even throw in the 75% commission!

          Derek
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  • Profile picture of the author FrankBowman
    I'm trying to figure out what would be a good % to pay for affiliates (sales people) for my Local SEO Biz.........any suggestions?......It would be based on recurring fees each month.
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  • Profile picture of the author secrets2010
    Originally Posted by derek.ifocus View Post

    I would guess the average Clickbank commission is what 75%?

    What do you guys think?

    Does it just depend on the selling point of the product?

    Would you offer a lower % if your affiliates are paid directly, as opposed to weeks later by CB?

    How does 50% sound? Would that not be worth it to you?

    Anyway, I'd just love to hear your thoughts.

    Thanks,
    Derek
    Of course 50% is worth...if the product has good conversion...but I always try to promote those products that offer 75%...at the end of the month it makes a big difference...
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    • Profile picture of the author Derek_Thomas
      Originally Posted by secrets2010 View Post

      Of course 50% is worth...if the product has good conversion...but I always try to promote those products that offer 75%...at the end of the month it makes a big difference...
      I'm curious your response as well...Would the aspect of immediate payment directly into your PayPal entice you to settle for a lower percentage...say 50% of a $27 product?

      Thanks,
      Derek
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  • Profile picture of the author rickdearr
    As you can tell by the differing answers, the answer is "it depends". Here are a couple things to think about in the process; if you are doing the $7 product to build your list and you have upsells and downsells to work with, give 100% on the front end. You can adjust the rest based on what you can deliver as an end result to your affiliates. Is each person averaging $30-50 in the affiliates pocket?

    % is really less important than opportunity cost to mail for you vs some other offer.

    If they mail for you and net the right $ they will be happy. If they consider you vs someone else and the other offer will net more $ (regardless of commission%) then the bigger $ wins, unless you have a relationship and they are returning a favor...

    As always test, test, test. Asking here is a good move, you can get a feel where to start.
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    • Profile picture of the author Derek_Thomas
      Originally Posted by rickdearr View Post

      As you can tell by the differing answers, the answer is "it depends". Here are a couple things to think about in the process; if you are doing the $7 product to build your list and you have upsells and downsells to work with, give 100% on the front end. You can adjust the rest based on what you can deliver as an end result to your affiliates. Is each person averaging $30-50 in the affiliates pocket?

      % is really less important than opportunity cost to mail for you vs some other offer.

      If they mail for you and net the right $ they will be happy. If they consider you vs someone else and the other offer will net more $ (regardless of commission%) then the bigger $ wins, unless you have a relationship and they are returning a favor...

      As always test, test, test. Asking here is a good move, you can get a feel where to start.
      Some really great points to consider. I appreciate your insights.

      Now my front end product does build my list, yes, however it is not a $7 product (I'm not sure if you know this, but you can use the $7 Secrets Script to sell a product at any price point, which makes for a really great tool)

      It helps looking at the bottom line of dollars and cents than %, so thanks for that perspective. I'm just trying to make it the best win-win for both my affiliates and myself.

      Thanks again for your insights...time to start testing.

      Derek
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  • I always look for value if a affiliate would pay 95% but they have no value I would not promote it to my market. If your deal provides value I would promote it with a 50% commission.

    I guess the key is provide value and people will still promote your product.
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    • Profile picture of the author butters
      A few factors could come into play when sorting out affiliate commission.

      - High conversion rate
      - Price
      - Reputation behind the product
      - Time in the market
      - The amount of time it will be sold for
      - Will the affiliates make money on the backend

      I am sure there are more factors but these are just a few to take into consideration.
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      • Profile picture of the author Derek_Thomas
        Originally Posted by butters View Post

        A few factors could come into play when sorting out affiliate commission.

        - High conversion rate
        - Price
        - Reputation behind the product
        - Time in the market
        - The amount of time it will be sold for
        - Will the affiliates make money on the backend

        I am sure there are more factors but these are just a few to take into consideration.
        That's a GREAT checklist...thanks for sharing. It will help me know what to present to future affiliates or JV partners.

        A side-note question...

        I'm still testing my sales-page, but my WSO is converting at 18%...is that a good WSO conversion rate?

        Has anyone ever noticed a correlation between their WSO conversions and their sales-page?

        Thanks,
        Derek
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        • Profile picture of the author butters
          Originally Posted by derek.ifocus View Post

          'm still testing my sales-page, but my WSO is converting at 18%...is that a good WSO conversion rate?

          Has anyone ever noticed a correlation between their WSO conversions and their sales-page?

          Thanks,
          Derek
          Through out my time online I have never done a WSO that said, I would of thought the the WSO would be a higher converting product then an actual sales page. The targeted traffic there is here, combined with people telling people that WSO are great deals would of helped sales I would of thought.
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    • Profile picture of the author Derek_Thomas
      Originally Posted by prostarprofitsdotcom View Post

      I always look for value if a affiliate would pay 95% but they have no value I would not promote it to my market. If your deal provides value I would promote it with a 50% commission.

      I guess the key is provide value and people will still promote your product.
      I agree wholeheartedly...however some people do seem to get stuck on the numbers.

      Thanks,
      Derek
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  • Profile picture of the author Aristodemos
    Our product is $125 and we pay our affiliates 50%. That seems to be about the norm.
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  • Profile picture of the author Seth M.
    We have done one initial push with our ebook product. The product sells for $37 with a 50% commission. Should be consider a higher price point with a higher commission percentage?
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    • Profile picture of the author Derek_Thomas
      Originally Posted by Seth M. View Post

      We have done one initial push with our ebook product. The product sells for $37 with a 50% commission. Should be consider a higher price point with a higher commission percentage?
      Some really great advice has been given above...you should check it out.

      Derek
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  • Profile picture of the author x3xsolxdierx3x
    Originally Posted by derek.ifocus View Post

    I would guess the average Clickbank commission is what 75%?

    What do you guys think?

    Does it just depend on the selling point of the product?

    Would you offer a lower % if your affiliates are paid directly, as opposed to weeks later by CB?

    How does 50% sound? Would that not be worth it to you?

    Anyway, I'd just love to hear your thoughts.

    Thanks,
    Derek
    I've sold products, and am just beginning to get my feet wet with setting up affiliates. One question/observation I've had...and, I was wondering what everyone else thinks...

    Do you "think" people with crappy products, oftentimes gravitate to a higher commission for affiliates, because they need to add 'extra' incentive for them to sell a product (because it is, indeed, a crappy product)?

    I know there are all types of strategies and rationales for different affiliate commissions, but can you translate a higher allocated affiliate commission to the owner, themselves, perceiving that their own product isn't that great....and, they REALLY need to provide incentive to get people to purchase it?
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  • Profile picture of the author iAmJT
    For most affiliates it is all about margins so if the price of your product is less than $60 or so, I would probably stick with a 75% commission, especially if it is a Clickbank product. My product sells for $37 with upsells and my commission is 75%. Anything less than that and I would probably be hard pressed to recruit new affiliates. For products with larger prices, or recurring billing/membership type commissions, 40%-50% is pretty realistic I think.
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  • Profile picture of the author Ty Neal
    I pay my affiliates 50% I feel if you pay your affiliates petty well they will keep promoting your product. I do think 75% works alot better Great Thread you guys are giving some awesome content..
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  • Profile picture of the author GenemisDuke
    I think you should share at least 50% for sales man. Because affiliate man make his/her effort to sell your product! Digital products can be multipled.

    Good luck!
    Gen.
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  • Profile picture of the author x3xsolxdierx3x
    Originally Posted by Victoria B View Post

    We offer up to 40% on health products.

    The highlight is that for every returning customer the affiliate gets full commissions and health products is something that people need over and over.

    Cheers!
    So, this is a recurring commission set-up? If an affiliate purchases a health product, then 2 months later, needs to purchase a refill or another health product, the original affiliate will earn a lifetime recurring commission? I believe online services like Aweber and eJunkie do something similar, as well....
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  • Profile picture of the author Stuart Stirling
    If you're lazy like me and rely on affiliates to promote your site,
    you'll want to offer the highest commissions you can afford to.

    But as many have said, it depends on what your purpose is, what
    you're selling, what your competition is doing, how much you're
    selling it for, how much you want to rely on affiliates etc.

    There is no right or wrong way.. but as long as it's getting you
    the desired outcome, it's the right way. If it's not, you'll have to
    change it.

    Stuart Stirling
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  • Profile picture of the author jbsmith
    Part of this depends on your approach to finding partners. If you want to pickup "cold" partners in a Marketplace setting like CB and you have some decent competition, then you may have to go to 75%, though the one way to combat that is to prove high conversions which will influence partners in your direction even more than commission percentage.

    However, there are many other ways to find partners, build relationships, send out review copies of your products, do reciprocal deals, etc... where you won't have to go to 75% - we have several big name partners at 50-60% commissions.

    On our membership sites - we do well with partners at less than 50% because they convert and hold well.

    Jeff
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  • Profile picture of the author ButterflyGarden
    Depends on the product usually anywhere from 20-50%.
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  • Profile picture of the author John Atkins
    Depends on a lot of things. For ebooks I would set the commision
    rate at 50% or more. I do this because several ebook promoters
    are used to getting high commision rates, and by setting it less than 50%
    you could lose lots of affiliates.
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  • Profile picture of the author webstrategistpk
    I offer 50% to my affiliates and my product is converting well.
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