How important is the amount an affiliate receives?

by TonyAG
16 replies
I'm launching my first product soon and I'm curious to know how the amount an affiliate receives affect the sales.

Let's say I offer affiliates to receive %75 per sale from a $37 product for a week or so. Will this be a good idea?
#affiliate #amount #important #receives
  • Profile picture of the author TonyAG
    Anybody know or have any tips?
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    • Profile picture of the author rikkib51
      Hi,

      Don't offer it to them for only a week. Stick to the same percentage and 75% is a really good percentage for affiliates. As I have read in guides, treat your affiliates like gold and make sure you look after them by giving them what they need to promote your product to there lists or options.
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      • Profile picture of the author Tommy Perez
        Yeah I agree...make 75% the "default" payout for as long as your product lasts in the marketplace.

        Affiliates LOVE 75%...it's like the magic percentage - especially on Clickbank.

        Remember...it's YOU who is working for the affiliates...not the other way round.

        Which means, you need to make your payout as attractive as possible to garner the most affiliates. So stick to the 75%.
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        • Profile picture of the author Tommy Perez
          I'd go for 50% if the product is higher priced and seems likely to convert traffic I send to the sales page.
          But remember a higher price point will affect conversions...and soemtimes negatively...

          It all depends on how you choose to position your product...and the perceived value that your prospects get from it.

          I would go for $47 and 75% commissions as a starting offer.
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  • Profile picture of the author woodymcgrath
    Always go for 75%

    Affiliates love the big payouts and if you offer anything lesser, they will just promote your competitor
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    • Profile picture of the author rikkib51
      Originally Posted by woodymcgrath View Post

      Always go for 75%

      Affiliates love the big payouts and if you offer anything lesser, they will just promote your competitor
      Yeah definitely. Thinking about it I might change my affiliate rate on a new product I am launching actually.
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    • Profile picture of the author Kay King
      I think it's a mistake (and common) when the price of your product is set based on affiliate commission rather than on competing with other products in the niche.

      75% commission is sweet but not if the resulting price puts you above other products. You can do that if you have a well known name or brand but if you don't, you have to base price on the market for the product.

      50-60% is an excellent commission.

      I've wondered if high (75%) commissions on some IM products make it more likely for people to buy through their own link. A $40 product with a $30 commission may translate to "worth $10" and could be a factor in the make money niche particularly.

      I would not set a temporary commission rate - 50-60% is still an excellent rate for affiliates. 75% is great - but not if it isn't acceptable to the seller or if it increases price above the market.

      kay
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    • Profile picture of the author imon32red
      Originally Posted by woodymcgrath View Post

      Always go for 75%

      Affiliates love the big payouts and if you offer anything lesser, they will just promote your competitor

      When I am searching for a product to promote I always look at the percentage that I will receive for each sale. In a nutshell this is how I search for a product. It appears that most of the responders to this thread are talking about CB products or something similar, and I will do the same.

      • I start by searching the products in my niche.
      • Then I sort them by the amount that I will make.
      • Then I start looking at offers that have the highest commissions.
      • I then look at the sales page for each offer to determine which ones I think it will convert.
      • Once I have identified a product I can start testing it. I can run a small campaign and purchase the product to determine value.
      That is a basic summary of what I do. I want to point out the reason that I give preference to products with higher commissions.

      If I am looking at a product that lists for $75 and has a 50% commission versus a $50 product that has a 75% commission I like the cheaper product. I find that I can sell more products at $50 than $75 most of the time. When the amounts are smaller like a $2 product versus a $3 product there is not much of difference. But for people outside of IM, the perceived value of an informational product is a lot lower than it is for those inside of IM. I know that there are exceptions to the rule, and I allow for them every time I look for a product to promote. However, my strategy works fine for me most of the time.
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    • Profile picture of the author CurtisN
      Originally Posted by woodymcgrath View Post

      Always go for 75%

      Affiliates love the big payouts and if you offer anything lesser, they will just promote your competitor
      Bad advice, sorry.

      While affiliates do like making more money per sale, the commission rate is almost never the deal clincher.

      Factors such as how in demand your product is, how well it's selling, what kind of back-end is in place, the conversion rate, the level of support for affiliates, and the $ payout per sale all matter.

      The commission rate is actually pretty low on the list of importance for affiliates.

      You could have 75% commissions or even 500% commissions, but if your product doesn't sell, no affiliate will go near it.
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      • Profile picture of the author Alexa Smith
        Banned
        Originally Posted by CurtisN View Post

        Originally Posted by woodymcgrath View Post

        Always go for 75%

        Affiliates love the big payouts and if you offer anything lesser, they will just promote your competitor
        Bad advice, sorry.

        While affiliates do like making more money per sale, the commission rate is almost never the deal clincher.

        Factors such as how in demand your product is, how well it's selling, what kind of back-end is in place, the conversion rate, the level of support for affiliates, and the $ payout per sale all matter.

        The commission rate is actually pretty low on the list of importance for affiliates.

        You could have 75% commissions or even 500% commissions, but if your product doesn't sell, no affiliate will go near it.
        With apologies to Woody, Curtis is 100% right that this is bad advice.

        That may be true of "most affiliates" (though actually I doubt even that), but don't forget that "most affiliates" make very few sales!

        All that matters is what professional affiliates want/expect/need, because they're the much smaller group of people who make 90% of the affiliate-referred sales. And for them, the commission-rate is, indeed, typically pretty low on the list. They care about "earning $30", for example, not about whether it's 40%, 50%, 60% or 70% of the retail price. Earnings per sale matter far more than commission-rate percentages.
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  • Profile picture of the author TonyAG
    Very true... thanks guys.
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  • Profile picture of the author Britt Malka
    When I value an affiliate offer, I look at several things:

    1) How good is the product? If it's not good, I don't promote it.

    2) How well is it selling - or how well will I think it will be selling?

    3) The percentage - above 50% is good enough for me.

    But I may not be typical ;-)
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  • Profile picture of the author oneplusone
    The affiliate commission rate is just ONE factor in the equation.

    All the big players in every market know their numbers, they will also look at other things such as your conversion rate, your back end (and whether they will get a piece of this pie) etc

    And last but not least, whether you have a list yourself so you can return the favour.
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  • Profile picture of the author ThomKenton
    When I act as an affiliate, it is very important. I could care less about my % of sale as long as I get a solid $$$ per sale.
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