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Would you accept 50% instant commisions on $17 products?

by Chris Worner
26 replies
Hello Warriors, here is the scenario;

You are starting from scratch with no list.

If you are going to go to the effort of creating premium quality content inteded for syndication ,day in, day out, until you have enough articles floating about where you can stop writing articles without it affecting your traffic and list opt-ins, then does such a small commision seem worth it?

I'm curious because for a product at that price point I personally would expect 100% to make it worth while promoting.

Your thoughts?

Chris

P.S. I am speaking from the perspective of an affiliate
#$17 #50% #accept #commisions #instant #products
  • Profile picture of the author indiatext
    I believe it will give quite a good conversion rate if the product is worth its cost...i can give a more specific opinion if you give some more details...
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  • Profile picture of the author hezell1989
    Just depends on the conversion rate. If it has a poor conversion rate then i wouldnt
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    • Profile picture of the author claire012
      100% commission sounds like a bit too far fetched I think...course it depends on the product and how good it is.
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    • Profile picture of the author Paul Myers
      Chris,

      I recently took 0% on a $5 product. (Should have been 20 or more times the cost.) Very high value relative to the price, and a good fit for my subscribers. Unfortunately, a lot of them didn't bother because of the low price point.

      If you look at it just from the math side, the folks who've said conversion rate is the key are right. What's your EPC?

      If the thing converts at 25%, with a 50% commission, you're looking at around $2.12 per click, before payment processing costs. A $1000 product that converts at .5% with a 50% commission pays about $2.50 per click.

      Those are not unrealistic numbers, by the way. This stuff goes all over the map.

      Not that much difference. The real question in those scenarios is: What's the lifetime value of each customer, based on your marketing style and product funnel?

      The answers might surprise you.


      Paul
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      Stop by Paul's Pub - my little hangout on Facebook.

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  • Profile picture of the author Caleb Spilchen
    I can see you being able to get 100% and/or being able to get 50%. The thing is, that there are two different mindsets.

    A) The person who is selling is in it for the immediate cash
    B) The person who is selling is in it for the list.

    If there the B type, then it will be 100%, if there the A they will be 50%. You have to look from the sellers side.

    BTW Chris, how are you doing man? Was nice chatting with you

    Caleb
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    Canadian Expat Living in Medellin, Colombia

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  • Profile picture of the author WillR
    The more important thing to look at is EPC. I would rather promote the 50% version for a 4-5% conversion rate than a 100% version that is lucky to convert at 1%.

    Having said that, all things being equal then of course I would rather the 100% as it gives me a chance to make double the money from the same amount of traffic - and at such a low price point people would find it hard to make campaigns profitable if they are only receiving $8 or so per sale.
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  • Profile picture of the author Jack Duncan
    Chris,
    There are two factors that have to be determined first.

    1. Do you have a backend funnel that works.

    If you have that already setup, and you are sure about your numbers, then I'd suggest you go straight to 100% commissions on a product with a $17 price tag. At $17, for many people, that is just an impulse buy and your affiliates will love the product if it converts really well...no matter what the price.

    2. Do you have some proof you can provide to affiliates regarding the EPC value?

    The type of affiliates that you want to attract know how to crunch their numbers. If your product converts like mad at $17, they aren't really going to care that much about what % they earn, as long as they get a better investment for the time spent promoting it than another product.

    Affiliates go where the money is...plain and simple.

    And if you can prove to them that this is where "the money is" for them, with hard numbers, the % commission becomes a pretty mute point.

    Hope this helps,
    Jack Duncan
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  • Profile picture of the author Chris Worner
    Hey Jack,

    I am speaking from the perspective of an affiliate, hence I am asking others if they would, I guess I didn't articulate that well enough.

    Chris
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    • Profile picture of the author Caleb Spilchen
      Originally Posted by Chris Worner View Post

      Hey Jack,

      I am speaking from the perspective of an affiliate, hence I am asking others if they would.

      Chris
      I like what Paul said... Because that's really the case, how much are you going to get out of each visitor.

      I don't know because I got...

      {It's an inside joke with Chris}.

      Caleb
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      Canadian Expat Living in Medellin, Colombia

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      • Profile picture of the author Paul Myers
        I don't know because I got...
        ... a rock?
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        Stop by Paul's Pub - my little hangout on Facebook.

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        • Profile picture of the author Caleb Spilchen
          Originally Posted by Paul Myers View Post

          ... a rock?
          Last night we had "music" night on TalkMarketingNow and chris played a song called "Because I got high"... And basically that was the excuse for everything
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          Canadian Expat Living in Medellin, Colombia

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  • Profile picture of the author Chris Worner

    Chris
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  • Profile picture of the author Jack Duncan
    Chris,
    My bad...

    I misunderstood you there.

    In that case, I'd say the only way to know for sure is to first see if you can get some past EPC data from the vendor via email and see if you can get any idea how this promotion would match up to what you are already doing successfully.

    Speaking from the product owner's perspective, one reason he may have this setup at 50% instead of 100% is that he simply doesn't have a backend for this product yet...

    And if he knows his fulfillment costs, he probably doesn't know how a way to create a positive ROI until he sets up his backend offers.

    Best,
    Jack Duncan
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  • Profile picture of the author Paul Myers
    Ah. There's a bad country song with the equivalent message: "I got stoned and I missed it..."

    I don't listen to that stuff often, but it was funny... Once.


    Paul
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    Stop by Paul's Pub - my little hangout on Facebook.

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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by Paul Myers View Post

      There's a bad country song with the equivalent message: "I got stoned and I missed it..."
      This reminds me of the story of some aging UK rock legend who was commissioned by a publisher in the 1990's to write his autobiography, and allegedly booked an ad in the New Musical Express announcing "If anyone can remember what I was doing in the 1960's, I'd be really pleased if they could let me know".

      For myself, I wouldn't look at 50% commissions on a $17 product, and would look at 100% commissions on it only if it were something good and very relevant that I could add to my list promotions effortlessly.
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    • Profile picture of the author CDarklock
      Originally Posted by Paul Myers View Post

      Ah. There's a bad country song with the equivalent message: "I got stoned and I missed it..."
      That song was written by Shel Silverstein, and performed by Dr. Hook and the Medicine Show.
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      "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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  • Profile picture of the author Chris Worner
    Thanks for your responses dudes and dudette.
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  • Profile picture of the author CDarklock
    Originally Posted by Chris Worner View Post

    I'm curious because for a product at that price point I personally would expect 100% to make it worth while promoting.
    I don't give a crap how much commission I make. If the product is right for my audience, I'll promote it, and whatever money I make out of the deal is just a bonus.
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    "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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    • Profile picture of the author Chris Worner
      Originally Posted by CDarklock View Post

      I don't give a crap how much commission I make. If the product is right for my audience, I'll promote it, and whatever money I make out of the deal is just a bonus.
      What if you are starting from scratch with no list?

      If you are going to go to the effort of creating premium quality content inteded for syndication ,day in, day out, until you have enough articles floating about where you could stop writing articles without it affecting your traffic and list opt-ins, then doesn't doing all this for an $8 commision not seem worth it?


      Chris
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      • Profile picture of the author CDarklock
        Originally Posted by Chris Worner View Post

        What if you are starting from scratch with no list?
        That's why I said "audience."

        If you are going to promote something - anything - you must have someone to whom you are going to promote it.

        Promote the wrong thing, you make zero sales and that audience doesn't want to listen to you anymore.

        Promote the right thing, you make sales and gain both the trust and the respect of your audience.

        If you don't know what your audience is, I would suggest that perhaps you shouldn't be so concerned about what to promote just yet.
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        "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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    • Profile picture of the author WillR
      Originally Posted by CDarklock View Post

      I don't give a crap how much commission I make. If the product is right for my audience, I'll promote it, and whatever money I make out of the deal is just a bonus.
      That's the answer we all SHOULD have given...
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  • Profile picture of the author Rich Struck
    Generally no, I would not bother with anything that paid $8.50 a sale BUT if it had recurring revenue I might think about it.
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  • Profile picture of the author mabaha
    whatever, I will go for it provided there is volume and I would be very happy at 50%
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  • Profile picture of the author tpw
    I'd take the 50% as an affiliate, if I felt the product offered value to my audience.

    I try not to sell crap to people, regardless of whether the commission is 40 cents for the Amazon commission on Kevin Reilly's book there, or if it is a $200 product offering 100% commissions.

    It all adds up...
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    Bill Platt, Oklahoma USA, PlattPublishing.com
    Publish Coloring Books for Profit (WSOTD 7-30-2015)
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