70% Commission Too Low?

24 replies
Someone inquired about promoting one of my products, but said the 70% commission rate was too low for them.

They had not bought the product, so any promotion was in my view going to be questionable anyway. Right now I'm ignoring the request, but thought I'd get your insights.

I don't know ... has the "100% commissions to create a list" jaded the affiliate market?

Are WSOs just "loss leaders" to build a list?

.
#70% #commission #low
  • Profile picture of the author Ross Cohen
    It depends - what's the value of the product? If it's $9.95 - 70% would only provide them maybe $5 after fees. If it's a $97 product, however, that's much different. It also depends on any upsells and conversion rates most importantly, much more importantly than the actual commission itself.
    {{ DiscussionBoard.errors[5915428].message }}
    • Profile picture of the author AnmolJ
      Originally Posted by Ross Cohen View Post

      It depends - what's the value of the product? If it's $9.95 - 70% would only provide them maybe $5 after fees. If it's a $97 product, however, that's much different. It also depends on any upsells and conversion rates most importantly, much more importantly than the actual commission itself.
      Completely Agree To You!
      I Hope Increasing Your product Price Would Be A Better Option!
      {{ DiscussionBoard.errors[5915455].message }}
  • Profile picture of the author damasgate
    I think if you're selling a $10 product that you should offer 100% commissions. For these reasons:

    1. Most people will find it not worth promoting.

    2. If you have a valuable upsell then you can offer 50% on it.

    3. If it's a good product, the big dogs will send out emails for you and will get you 200-500 sales easily. Those people you get will be invaluable to you as they are proven buyers and will probably buy again.

    The reason top marketers can produce so many sales is because they can do this themselves is because they themselves have a huge list of people just like this.

    So in the end I think 100% commission for a low price item is a good approach, although it's not written in stone.
    {{ DiscussionBoard.errors[5915449].message }}
  • Profile picture of the author sovereignn
    Originally Posted by kindsvater View Post

    Someone inquired about promoting one of my products, but said the 70% commission rate was too low for them.

    They had not bought the product, so any promotion was in my view going to be questionable anyway. Right now I'm ignoring the request, but thought I'd get your insights.

    I don't know ... has the "100% commissions to create a list" jaded the affiliate market?

    Are WSOs just "loss leaders" to build a list?

    .
    It depends on the price of your product...

    I have a $150 product that affiliates promote for 33% commission
    {{ DiscussionBoard.errors[5915463].message }}
  • Profile picture of the author Noel Cunningham
    It depends on the price, as mentioned if it's a lower priced product then 100% would be no big deal... Just an observation, check out the person who is asking to be an affiliate. If they are a new member with only a few posts then maybe it wouldn't be worth you while to accept them as an affiliate...

    But if they are an established Warrior that can promote it to their list then you might consider their request because they will add subs to your list...
    {{ DiscussionBoard.errors[5915485].message }}
    • Not saying anything about any particular person, but serious marketers know exactly how much they're willing to pay to acquire a qualified lead.

      If you go the affiliate route and there's a disconnect between what you're willing to pay and what a worthwhile affiliate is willing to accept, you either use another sales channel or increase your offer.

      It really is that simple.

      fLufF
      --
      Signature
      Fiverr is looking for freelance writers for its blog. Details here.
      Love microjobs? Work when you want and get paid in cash the same day!
      {{ DiscussionBoard.errors[5915525].message }}
    • Profile picture of the author Frank Donovan
      Brian, I think your instincts are probably correct.

      An affiliate who just focuses on the upfront percentage figure without researching the conversion rate, backend or long term partnership potential and who hasn't even examined the product to determine its value or relevance isn't someone who's taking his business very seriously.

      Best to avoid, IMO.


      Frank
      Signature
      TOP TIP: To browse the forum like a Pro, select "View Classic" from the drop-down menu under your user name.

      {{ DiscussionBoard.errors[5915561].message }}
  • Profile picture of the author Ashley C
    As others have said, a low priced product should probably be closer to 100% if you want affiliates to actually make sales. For higher priced products, 70% will usually be a really good deal.

    It could be that the person contacting you is just greedy, if your product is not in the lower price bracket.
    {{ DiscussionBoard.errors[5915537].message }}
  • Profile picture of the author blillard
    Originally Posted by kindsvater View Post

    Someone inquired about promoting one of my products, but said the 70% commission rate was too low for them.

    They had not bought the product, so any promotion was in my view going to be questionable anyway. Right now I'm ignoring the request, but thought I'd get your insights.

    I don't know ... has the "100% commissions to create a list" jaded the affiliate market?

    Are WSOs just "loss leaders" to build a list?

    .
    See if he'll settle for like 80%-90% and ask him question about is list and methods for promotion. Look to create yourself some kind of a backend as well.
    {{ DiscussionBoard.errors[5915614].message }}
  • Profile picture of the author Entrecon
    I have mine set up for a 66% commission...maybe I need to examine that more since it is only priced at $14.97.
    Signature

    Visit My website http://kipferguson.com

    {{ DiscussionBoard.errors[5915631].message }}
  • Profile picture of the author JasonParker
    Yeah, I'd say for me at least that 100% commissions has spoiled me rotten.

    That's pretty much all I look to promote.

    What you can always do is make it 100% on the frontend and 50 or 70% on the backend.

    For example, create another frontend offer and make it 100% commis to put into front of your current offer.
    {{ DiscussionBoard.errors[5915726].message }}
  • Profile picture of the author Bruce NewMedia
    Brian, the products I've offered 100% on have sold 2 to 3 times better than the lesser
    commission offers. Conversion rates do matter, btw, but I think most affs, who are usually in a hurry, just focus on commission rate.

    ...and conversion, unlike commission rate, is a variable, highly dependent on the affs traffic quality.
    I've had the same offer convert at 4% for one aff and 33% for another aff(over 100 orders).


    Also, much of affiliate 'courting' can be non-productive. I find 10% of my affiliates produce almost all the sales, leaving the hundreds of others to produce little or nothing.
    _____
    Bruce
    {{ DiscussionBoard.errors[5915977].message }}
  • Profile picture of the author kindsvater
    Jason, a couple questions (and there is nothing wrong with being spoiled rotten)

    - Do you ever buy products to promote to your list (like the PLR in your sig)?

    - Do you do affiliate promotions other than by email?

    - Would you pay a fee to get a 100% commission?

    .
    {{ DiscussionBoard.errors[5916032].message }}
    • Profile picture of the author JasonParker
      - Do you ever buy products to promote to your list (like the PLR in your sig)?

      If I'm going to buy some PLR I'm going to buy some REALLY GOOD PLR and use it normally as a bonus to a paid product. I've used PLR as giveaways to build lists before too. I've never bought a PLR product and straight up sold it.

      - Do you do affiliate promotions other than by email?

      Nope, except for Amazon stuff that's promoted directly on the website.

      - Would you pay a fee to get a 100% commission?

      Sure. I mean... I promote stuff that's less than 100% commission too. It's just that my eye looks for 100% commission.
      {{ DiscussionBoard.errors[5916530].message }}
  • Profile picture of the author IMHunter
    If the price of the product is from $1-$20 then it is low otherwise it is fine.
    {{ DiscussionBoard.errors[5916106].message }}
  • Profile picture of the author jamesrich1
    I am not accepting anything less than 100% commissions. Once you get your taste of 100% commissions from the full funnel ($25 mo, $100 m, $500 one time, $1,000 upsale) with residual earning you will never go back again.
    {{ DiscussionBoard.errors[5916346].message }}
    • Profile picture of the author kindsvater
      Originally Posted by jamesrich1 View Post

      I am not accepting anything less than 100% commissions. Once you get your taste of 100% commissions from the full funnel ($25 mo, $100 m, $500 one time, $1,000 upsale) with residual earning you will never go back again.
      That makes emotional sense. I delivered pizzas in college and the cash from tips was very addicting.

      On the other hand, seems like you're leaving a ton of cash on the table. Only a certain type of product will have 100% commissions. For everything else you're getting zero.

      When you think about how much you're getting zero on, that may not taste so good.

      .
      {{ DiscussionBoard.errors[5917876].message }}
  • Profile picture of the author Cataclysm1987
    I agree with the other posters. It's silly to worry about this unless your product is really low priced.

    If your product is like something on Clickbank for 50-100 dollars, 70 percent is generous.

    If it's 10 dollars, might want to consider a 100 percent commission, then just do OTOs and list building on the back end.
    Signature

    No signature here today!

    {{ DiscussionBoard.errors[5916358].message }}
    • Profile picture of the author JasonParker
      Originally Posted by Cataclysm1987 View Post

      I agree with the other posters. It's silly to worry about this unless your product is really low priced.

      If your product is like something on Clickbank for 50-100 dollars, 70 percent is generous.

      If it's 10 dollars, might want to consider a 100 percent commission, then just do OTOs and list building on the back end.
      If it's a higher priced offer, then you could do it on ClickBank for 70% commissions and that would be generous on there.

      If it's on WSO Pro or something then you probably want to create a frontend you can offer for 100% that's around $10 or less, then have your upsell be the higher priced offer at 50% commissions.

      That's just what I would do!
      {{ DiscussionBoard.errors[5916783].message }}
      • Profile picture of the author atvking
        I would concentrate on making the product more appealing for affiliates and buyers than on the % of the commission.

        Back in the day when I used to promote adult sites there was a commission war going on where people did not do their math very well and offered affiliates waaaay too much money in hopes of getting absurd amounts of traffic and, somehow, staying afloat...needless to say it all went south and many programs just went bust....

        Id rather promote a product that looks great and feels great for a 30% commission then promote something that everybody is pushing and get 100% of nothing....
        Signature

        ...

        {{ DiscussionBoard.errors[5917012].message }}
  • Profile picture of the author CDarklock
    Originally Posted by kindsvater View Post

    I don't know ... has the "100% commissions to create a list" jaded the affiliate market?
    Yes. But the affiliate market is also a lot larger now. It's full of people who view affiliate offers as a chance to sell someone else's product and keep all the money, but those people are new. The old affiliates, the ones perfectly happy to promote a good product at a good price regardless of the commission percentage and the EPC, are still around.

    And they won't promote $10 garbage, even for 100% commission, because it's garbage. EPCs be damned.
    Signature
    "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
    {{ DiscussionBoard.errors[5918457].message }}
    • Profile picture of the author Paul Myers
      Brian,

      If he's talking about the product I think he's talking about, he's an idiot. Ignore him.


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

      {{ DiscussionBoard.errors[5918796].message }}
  • Profile picture of the author John Rogers
    [DELETED]
    {{ DiscussionBoard.errors[9568312].message }}
    • Profile picture of the author Alexa Smith
      Banned
      Guys, the thread is from the start of 2012 ...
      {{ DiscussionBoard.errors[9568319].message }}
  • Profile picture of the author jasondinner
    70% commission is perfectly fine and more than generous.

    I guess it all depends on where you're selling the product and who you are trying to attract as an affiliate.

    At the end of the day it's all about EPC, so get some hard data from multiple traffic sources - whether it be your own data or other affiliates who have no problem with 70% - and report EPCS to potential affiliates.
    Signature

    "Human thoughts have the tendency to transform themselves into their physical equivalent." Earl Nightingale

    Super Affiliates Hang Out Here

    {{ DiscussionBoard.errors[9568323].message }}

Trending Topics