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100% Commission.... Your thoughts?

by guillopuyol
5 replies
I've been considering using the 100% commission model where I would give my customers 100% of the front end sales they refer, but I was hoping some warriors that have tried this would weigh in with their experience.

I would offer 100% commissions only to those who have purchased the product, but how many customers can I expect to see turn into active affiliates who generate at least one sale?

For low priced products $7 - $37, what would the average number of sales per active affiliate be?

I know these numbers vary, but I am looking for a ballpark average that I can use for my plans... I gotta have a plan to start with, and I can always tweak based on results.

Thanks
#100% #commission #thoughts
  • Profile picture of the author Istvan Horvath
    Be careful with that "only customers can become affiliates..." thingy. Paypal, for example, can shut down your account for it.

    Not sure customers turn into active affiliates. Not likely, in my experience... It's true, I offered only 50%.
    Quite a number of buyers signed up to be an affiliate and 95% of them never promoted it: never sent any referrals.

    Non-buyers also signed up... and even with the same number of referrals (i.e. unique clicks) the conversion can vary from 10+% to 0.5% - all going to the same salespage. Go figure

    On the other hand I put up another cheap ($15) product on digiresults and offered 100% commission. A few marketers started to promote it and they had good results with it.

    It is difficult to see a pattern.
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  • Profile picture of the author Willie Crawford
    There are so many products for affiliates to choose from that
    you need a great product, copy proven to convert, and to
    make it really , really easy for affiliates to promote.

    You need regular contact with your affiliates and you need
    to "sell them" on promoting your products and teach them
    techniques proven to work... for your specific product.

    Think of your affiliates as partners, and let them know that
    you really appreciate them.

    Willie
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  • Profile picture of the author Linda Hepworth
    It depends on your affiliates. If the affiliates don't have a list they need a $10 - $20 product so that they can sell it to people that don't know them. If they have a list then they would benefit from a higher paying offer. Ad far as giving your affiliated 50% or 100 % you would probably have to just try it. The 100 % commission products are a good incentive, but it will depend on the producut you create. Newbie products in a niche where someone is learning how to do something, or traffic related products would probably be a good place to start.
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  • Profile picture of the author Marvin Johnston
    Generally speaking, giving 100% commissions is done for two reasons; list building and the lifetime customer value.

    While list building is fairly obvious, the lifetime customer value might not be. Basically, you are giving away money up front to gain (buy) a customer expecting to more than make it up on future purchases of that customer.

    And only you can decide if it makes sense.

    Marvin
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    • Profile picture of the author JordanHall
      I certainly like promoting them as an affiliate.
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      Well, I'm HIRING! I pay well and provide you with an inside look of a very successful online business. I also help them develop and promote their products and services. Please PM if interested!
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