Affiliate Newbie: Percentage vs. Flat Rate?

by BeckM2 12 replies
Hi,
I have a book that I sell to dentists, "The Web Design Workbook for Dentists" at a regular price of $279.99. I often run a $199.99 special.

I have never run an affiliate program before and I am thinking of adding an affiliate program for the book but I have a few questions:

1) I have e-Junkie for my cart and I love them. Is their affiliate setup good? I've never done any affiliate work -- where is a good place to go with to get my own affiliates?

2) Is there a "best practice" for finding affiliates? Or is it simply a matter of contacting a lot of bloggers in the dental field and trying to get them on board?

3) Should I offer a % (the actual commision would change based on if I have a special or not) or should I offer a flat fee?

4) The book is somewhat of a loss leader for me, because many dentists who buy the book become clients - which is a very high ROI. Thus, I'm not shy about giving a $25 or $50 affiliate fee per sale. Is that a lot of money for an affiliate program, or not?

Side Note: If you do look at my site, the book is on special for $99 now because of a misprint in a magazine that reviewed it, but that special will go away soon.

Thank You!
#main internet marketing discussion forum #affiliate #flat #newbie #percentage #rate
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  • Profile picture of the author Thomas W
    A $199 e-book is not a loss leader. it's a Large profit


    Also 25 or 50 is pennies compared to a $199 product.. At the very least you should pay 50/50
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    • Profile picture of the author BeckM2
      Originally Posted by Thomas W View Post

      A $199 e-book is not a loss leader..

      It's not an e-book. Sorry I should have pointed that out. It's a custom printed binder with a 100+ page bound book with around 12 removable worksheets.

      And why do you say it's not a loss leader?

      Also 25 or 50 is pennies compared to a $199 product.. At the very least you should pay 50/50
      Thanks for the info. I have no idea on this subject so that's very helpful. Would a 50% commission be fair considering that I may or may not be running a special?
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      Internet Marketing for Dentists and Physicians
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    • Profile picture of the author MattStevens
      Originally Posted by Thomas W View Post

      A $199 e-book is not a loss leader. it's a Large profit


      Also 25 or 50 is pennies compared to a $199 product.. At the very least you should pay 50/50

      My sentiments exactly...if a 200 dollar sale on an eBook is a loss leader..than you better check your printing and fulfillment rates
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  • Profile picture of the author michaelplies
    Definitely go with 50/50
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  • Profile picture of the author mrmarketer1
    And if you're back end is where you make all the money then consider more. I mean, why not if that's the tip of the iceberg for your business model....
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    • Profile picture of the author BeckM2
      Originally Posted by mrmarketer1 View Post

      And if you're back end is where you make all the money then consider more. I mean, why not if that's the tip of the iceberg for your business model....
      Interesting. To your knowledge does e-junkie have a good affiliate program? I use their cart and I'm very pleased with them.

      Also, other than inviting dental bloggers to join, how else can I find affiliates for a niche like mine?

      Thanks.
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  • Profile picture of the author Randall Magwood
    50/50... and offer JV partners 65%.
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  • Profile picture of the author Thomas W
    Just to clarify,, a Loss leader is a product or service that you actually loosing money in to attract the customers to hopefully they make a higher end purchase.

    Example retail stores do this all the time during black friday sales. Have a TV that normally prices at $999 and they sell it for only $299. They are actually loosing $700.

    But it's there so people will wait in long lines for 8 hours in hoping to get the TV at such a crazy low price.
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    • Profile picture of the author MattStevens
      Originally Posted by Thomas W View Post

      Example retail stores do this all the time during black friday sales. Have a TV that normally prices at $999 and they sell it for only $299. They are actually loosing $700.
      Just to clarify this a little..the store only loses the wholesale money.

      Buy the product from the manufacturer at 400.00.....mark it up to 1000.00....advertise it as a special (loss leader) at 300.00, put the item in the back of the store, near some high profit items, limit one per customer...do only once or twice a year....and you have a pretty nice marketing promotion
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      • Profile picture of the author BeckM2
        Ok so then loss leader is the wrong term. Yes I make a nice, profit on book sales but I make a lot more when a purchaser of the book becomes a full-fledged client.

        Is there a term for that?

        And what's "JV Partners" as in the context above?

        And how does one go about finding partners in a small niche?

        Thanks.
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        Internet Marketing for Dentists and Physicians
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        • Profile picture of the author Thomas W
          Originally Posted by BeckM2 View Post

          Ok so then loss leader is the wrong term. Yes I make a nice, profit on book sales but I make a lot more when a purchaser of the book becomes a full-fledged client.

          Is there a term for that?

          And what's "JV Partners" as in the context above?

          And how does one go about finding partners in a small niche?

          Thanks.

          What your basically doing is selling a lower ticket item and upselling for more expensive product.

          JV = Joint Venture . You can contact me, tell me about your business
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          Established webmaster since 1998. Bought my first domain name for $70 and had to pay $1000 a month for hosting. It was the good life

          Skype: twool9
          Email me at thomasw9 ((((a)))) G mail

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  • Profile picture of the author BeckM2
    What's the best way to find affiliates in my dental niche? Reaching out to bloggers?
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    Internet Marketing for Dentists and Physicians
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