How do the Warriors make money when they SELL all for 100% Commission?

26 replies
I really got surprised to see there were a whole LOT of products on JVZoo especially WSOs that were providing a FLAT 100% Commission. I just don't understand what do they get doing that. They really sell or are just SOLD OUT???
#100% #commission #make #money #sell #warriors #wso
  • Profile picture of the author AnniePot
    Originally Posted by MakeMoneyKid View Post

    I really got surprised to see there were a whole LOT of products on JVZoo especially WSOs that were providing a FLAT 100% Commission. I just don't understand what do they get doing that. They really sell or are just SOLD OUT???
    Simple - they're doing what all savvy, clued-up marketers should be doing: Building Their Lists.

    It's their list that provides them with residual, long-term income.
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  • Profile picture of the author AUKev
    Offering 100% commission will entice JV's to mail your offer. You make your money on the back side with the OTO (One Time Offer) or more importantly creating an email list of all the buyers to market to them in the future (your other products or affiliate offers).
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  • Profile picture of the author celente
    you kidding right,

    here is the thing, do you want one sale?

    Or do you want a lead?

    HInt : you can make money on one sale.

    OR.

    You can plug stuff to a lead, over and over again, until he unsubcribes.

    The best thing about that lead in this case is it is a buyer, so everytime you send them an email or offer they are likely to buy. :-)
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  • Profile picture of the author MakeMoneyKid
    Damn! I didn't know that this could be part of a list building strategy and further it's such a BLASTING Tactic! Awesome. Thanks all you guys AnniePot, AUKev and celente for your quick response.

    I really need to learn a lot and WarriorFoum is going to be my best school
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  • Profile picture of the author RedShifted
    Its the same concept as using loss leaders in marketing.

    Sometimes marketers will sell something they actually lose money on, because the backend of their funnel is optimized and works that well.

    A great example of this are webhosting companies like godaddy. These places will run promotions where they are selling domains for so cheap that they lose money on their front end. But it allows them to do 2 things that are highly beneficial. First, it helps position them above their competition. Second, if their backend is optimized, and they have enough upsells, they can make a killing from that first sale... that initially lost them money.

    It all comes down to math really.
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  • Profile picture of the author kindsvater
    I'm not going to say Annie and Celente are wrong for everyone,

    But I have a different take on this ...

    Many 100% commission products are because newbies are creating whatever reports they can muster after having been lulled into believing this is the only way to make money.

    What happens is the newbie makes a report that generates $0 but now they have a small "list." However, since the newbie is not experienced with email marketing their list makes them nothing as they try to pimp other products. The only person making money is the original list owner. The newbie loses money because now they have monthly autoresponder expenses and ultimately they are gone.

    What they should have done is offered less than a 100% commission so they made some money, and built a list from referrals, so they at least have positive cash flow.

    If one is not adept at making money from email marketing then it is foolish to give away all the profit from a product sale.

    Many newbies are only going to have one product. They put their heart and soul into it. No matter how good it is or how many sell, they end up losing money and being even more broke.

    There is nothing magical about a 100% commission except the ego of someone wanting it. Sales being equal a 50% commission on a $17 product is obviously better than 100% on a $7 product.

    Many product creators should grow a back bone. They have something of value that email marketers need.

    There are many different ways this can be played. If a product owner believes a list owner can help build them a customer base they will profit from, why stop at 100% commissions? Offer more!

    On the flip side, if a list owner believes a product can make them money offer something to the product owner as an inducement to decrease competition from other list owners.

    To address the OPs question, another way Warriors make money from 100% commission products are pre-established backend offers that have nothing to do with list building. For instance, my products will refer to additional products I have created, and products from others I get a commission from. Some buyers will also buy these other products. Each product they buy refers to more products, so there is a chain reaction of selling opportunities.

    .
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  • Profile picture of the author Shubh Ashish
    Doing this increase there List size which comprise of GOLD....
    .
    .
    oh ! I mean Buyers List !
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  • Profile picture of the author FrancoArda
    really? list building!

    I'm sure we'll soon see 110% or so ...
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  • Profile picture of the author zoomsixx
    List building and upsells is where the money is at.
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  • Profile picture of the author maggie2
    I guess this is a good tactic if you have your back end products ready to go and you really want to build a list. It makes sense in those cases. However, if you don't have any back end products it will be a total loss.
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    Marg

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  • Profile picture of the author BrianGroan
    Some WSO creators make more money on upsells and OTO's as well as building a list of proven buyers which is invaluable!
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  • Profile picture of the author Mr. Ken Russell
    Probably building a list and promoting products for future use.
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  • Profile picture of the author AndrewStark
    When creating offers < $10 it's not worth promoting unless you get all of the commission, I mean the product owner is getting the list, and a chance to build a relationship with the customer you just sent them.

    If you are thinking about creating a product like this, be sure that you a higher priced upsell in place, this will have a lower rate of commission and should generate income for the programme owner.

    Lastly as has been mentioned these sort of offers should be thought of as loss leaders and the front part of your marketing funnel.
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    • Profile picture of the author kindsvater
      Originally Posted by AndrewStark View Post

      When creating offers < $10 it's not worth promoting unless you get all of the commission, I mean the product owner is getting the list, and a chance to build a relationship with the customer you just sent them.
      This doesn't make any sense. Why should you care what the product owner gets? It's not part of your equation. Your equation is simple math: subscriber list x percentage buying x commission amount = profit.

      You're falling for a basic "game theory" fallacy where you're basing your economic decisions on what someone else gets. Whether a product owner gets a list or not is irrelevant to deciding whether to promote a $9 versus an $11 product.

      You're not the only one making this mistake. It is truly amazing list owners want 100% commissions, so they will promote a 100% commission $7 product with a 2% conversion rate and ignore a 70% commission $7 product with a 10% conversion rate.

      You feel better getting "all the commission" - but only if you ignore how much money you've lost.

      .
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      • Profile picture of the author MakeMoneyKid
        Originally Posted by kindsvater View Post

        This doesn't make any sense. Why should you care what the product owner gets? It's not part of your equation. Your equation is simple math: subscriber list x percentage buying x commission amount = profit.

        You're falling for a basic "game theory" fallacy where you're basing your economic decisions on what someone else gets. Whether a product owner gets a list or not is irrelevant to deciding whether to promote a $9 versus an $11 product.

        You're not the only one making this mistake. It is truly amazing list owners want 100% commissions, so they will promote a 100% commission $7 product with a 2% conversion rate and ignore a 70% commission $7 product with a 10% conversion rate.

        You feel better getting "all the commission" - but only if you ignore how much money you've lost.

        .
        Yes, I too would like to point out the same. There are even products with a price tag of less than $1.99 among the WSOs.
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  • 100% commission is a bit like the Freemium model whereby you have a tiered business that "opens up" with a free product to hopefully make money on (later) upsells.

    The key thing to note being that all the revenues in the 100% commission go to other people. You make $0 but you collect the emails of all the buyers. Lists built this way are no ordinary lists, because these are buyers and not freebie seekers or strangers in a list swap.

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    • Profile picture of the author IMSince2003
      Originally Posted by HandwrittenBook View Post

      100% commission is a bit like the Freemium model whereby you have a tiered business that "opens up" with a free product to hopefully make money on (later) upsells.

      The key thing to note being that all the revenues in the 100% commission go to other people. You make $0 but you collect the emails of all the buyers. Lists built this way are no ordinary lists, because these are buyers and not freebie seekers or strangers in a list swap.
      I like that drawing. I did not know that people still use paper and pens
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      • Well, pen and paper isn't a very common training format but i thought it would be refreshing around the WarriorForum to teach with something more visually oriented.

        I thought it a better teaching aid than using traditional blocks of text which demand that you follow the sequence of information set out by the teacher.

        Thanks for the kind words.

        Joe.

        Originally Posted by IMSince2003 View Post

        I like that drawing. I did not know that people still use paper and pens
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        • Profile picture of the author WFAlex
          backend offers are the key, plus with a 100% commission they're going to attract way more affiliates than with 50/75%.
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  • Profile picture of the author Des Lau
    How do Warriors make money on 100%

    The obvious answer is upsells, downsells and backend offers. But all this is fruitless if you don't have a quality product worth promoting for affiliates to pick it up.

    kinsvater Is right. If the conversion rate is higher but commissions are lower, affiliates will be just as likely to push harder to promote it.
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  • Profile picture of the author tpw
    Even if you don't understand the business model does not mean the business model is flawed!!

    Here is the deal....

    Selling products for $7 or giving affiliates 100% commissions are both a valid method for building a mailing list...

    The Lifetime Value of a Customer is often worth much more than the potential earnings from a single product...

    I know one fellow who sells $7 products with a 100% affiliate commission in order to build his list of serious buyers... In his back-end sales funnel, he offers products and services ranging in price from $47 to $9995.

    Selling information for $7 with a 100% affiliate commission is often much cheaper than buying traffic from Google Adwords and other lead generation sources, and this kind of traffic is often far better than traffic from other lead sources because it is "proven buyer traffic".
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    • Profile picture of the author MakeMoneyKid
      Originally Posted by tpw View Post

      Even if you don't understand the business model does not mean the business model is flawed!!

      Here is the deal....

      Selling products for $7 or giving affiliates 100% commissions are both a valid method for building a mailing list...

      The Lifetime Value of a Customer is often worth much more than the potential earnings from a single product...

      I know one fellow who sells $7 products with a 100% affiliate commission in order to build his list of serious buyers... In his back-end sales funnel, he offers products and services ranging in price from $47 to $9995.

      Selling information for $7 with a 100% affiliate commission is often much cheaper than buying traffic from Google Adwords and other lead generation sources, and this kind of traffic is often far better than traffic from other lead sources because it is "proven buyer traffic".
      So, do I conclude It is the BEST alternative to Adwords?
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  • Profile picture of the author Joshster
    I wish I'd known this formula 6 months ago...
    I'd have a list of buyers instead of the expensive to maintain list of freebie seekers that I have now...
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  • Profile picture of the author Mo Jogee
    The affiliate gets the commission but more importantly the vendor gets the buyer who he can market to over and over again. Most likely the vendor will have an up-sell or a high ticket back-end offer where he/she will make the bulk of their profits.
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