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Best Type of Affiliate Payouts?

by MarketingMinded
10 replies
As an affiliate, what kind of payouts do you prefer: percentage-based commission or flat-rate commission?

For example;

A) 33% recurring commission per referral

Or

B) $135 per referral

Which would you pick and why?
#affiliate #payouts #type
  • Profile picture of the author Michael Harris
    I don't prefer one over the other..

    Rather I like to have a mix of both..

    Don't put all your eggs in one basket..
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  • Profile picture of the author Arief Ramadhan
    Depends on the product and support quality, if it's good and make the member keep their account active in the membership then I'd prefer the option A.
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  • Profile picture of the author Thomas W
    Your looking at this all wrong. What you should be calculating is EPC. (Earnings Per Click) because at the end of the day that is all that matters.
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    • Profile picture of the author MarketingMinded
      Originally Posted by Thomas W View Post

      Your looking at this all wrong. What you should be calculating is EPC. (Earnings Per Click) because at the end of the day that is all that matters.
      I know that's most important, simply asking a question to see people's preference.
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      The Solopreneur Chronicles
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  • Profile picture of the author MichaelNech
    There are programs out there which will make you a lot more money in the end if you go with the recurring option.

    Two examples are: autoresponder and hosting services (been using my Aweber account for many years, I guess the affiliate I singed under is quite happy).

    Also, there are quite a number of CPA offers which will let you choose between receiving a fixed upfront payment versus a recurring, monthly payment (for example dating services).

    And I'm barely scratching the surface here.

    Mike.
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  • Profile picture of the author JasonParker
    Since stick rates these days are 1 to 3 months on average, I'd go with the one off commission.

    But if this product or service is something that's really needed like we hosting or an autoreponder, then it may be worth recurring commissions instead.
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  • Profile picture of the author JasonJason
    You have to focus on more than just the payout amount. There are so many other factors to consider such as refund rate, recurring payout/or not, percentage that rebill, market competition, keyword competition, etc.. Best of luck in all your efforts!
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  • Profile picture of the author chiefman
    I think it really depends on the product and niche you're in. I typically like lead gen type offers because it splits the risk between the merchant and the affiliate equally (50/50). With a rev-share, you - the affiliate are taking 100% of the risk, which is why I've found lead gen to be a more profitable model on the publisher side.
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