What's the best way to structure this affiliate program???

5 replies
I have a question that maybe someone can give me some advice on???

I'm setting up a website. It's going to have an affiliate program. The main product starts at 25 dollars a month. Then I was thinking of adding some much bigger levels of membership. Like possibly going as high as 500 per month for the top package.

My challenge is setting up this affiliate program. Because I'm trying to sell it to members as almost like a "biz opp". I was gonna do a 3 tier program. So for every membership they sell the member gets paid

$10 per month on tier 1,
$5 on tier 2
$2 on tier 3.

But I was kinda doing the math on that and it just doesn't look awfully exciting. Like that means a user has to get possibly as many as 100 members under them just to be making 1000 per month.

Like how are they suppose to get excited about that? that's what got me confused. I was thinking that I want to be able to show in my sales info that they can earn at least 1 to 5k per month with not a lot of sign ups. Like unless they sign up 1000 members there's really not much money there. And that leaves me less profit per month too.

The product prices for the membership I'm selling could likely be setup like into 4 different levels of membership. So 25 for the basic, 100 for advanced, 250 for professional and 500 per month for Enterprise.

So maybe if I got some people joining at the higher levels it might start to build some excitement in terms of what kind of money the affiliate could earn.

But it's just challenging, Like I'm trying to set it up in a way where I could show the affiliate that they might be able to make a good living at this with not a lot of members under them.

But the challenge ends up being that these affiliate modules that you use to track the program only allow for levels and commissions per level. They don't allow for anything exotic like say for example the Empower network has. Like a one up system. Plus I don't think paypal allows that kind of thing.

So I'm just trying to figure out how to make this work???

Like is there any good examples where a company is charging say 25 bucks a month for a service, but still has the affiliate system set up in a way to look as if the affiliate can make some serious money threw it?

If I could find some examples I might be able to mimic a working business model. Anyway let me know if you have any ideas that might help for this? Thanks.:rolleyes:
#affiliate #program #structure
  • Profile picture of the author Victor Edson
    They don't get rich selling your low end products, it's the high end stuff where people make money.

    If I sign up 100 people, and you can't convert any to a high end payer, it'd be harder for me to make money than if you were converting 2 or 3 percent.

    EN pays only pays out 75% commission. But DON'T structure your business the same as theirs since it's technically illegal the way they're selling to affiliates primarily by fearing them into missing out on commissions.

    Anyway.. get good at converting people into your higher levels and focus all your content around getting people into paying the higher levels and keeping them there as long as possible, that way your affiliates earn more.
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  • Profile picture of the author RogueOne
    Why not just pay a straight percentage? Make it enough so people will want to promote even the low end.
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    • Profile picture of the author aceshigh888
      I might have figured it out today. This is what I came up with.

      Charge 29.95 per month as the basic membership. Then offer:
      Tier 1: $10
      Tier 2: 5
      Tier 3: 5

      and I keep the rest. So when I worked it out, I'd market to the people that there job is to try and get 5 people to join, and then show that when you map that out to it's logical conclusions, 5 getting 25 getting 125 at that point the user is making 800 per month in commissions. And that's not including upgraded members or one time sales of a few products I plan to offer.

      My main thought was mainly reasoning out "how are people going to make a living at this". So I think this should work. Because when your spelling it out on paper it has to look reasonablly attractive to the prospect.

      But any other ideas I'm all ears???
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  • Profile picture of the author Ron Killian
    Think it's challenging because it seems like your trying to do it with one product and one price point. Plus being a lower price point, there is not going to be much, to be able to pay out.

    What not do like Victor mentioned, have upsells, or higher ticket products, where you have more dollars to hand out. Instead of 3 tiers for one low price point, make three upsells?

    Course don't know what you have, if that is even possible.

    Your right though, not much to get excited about so far, not enough to get many people on board. Unless it converts VERY well.
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    • Profile picture of the author aceshigh888
      Originally Posted by Ron Killian View Post

      Think it's challenging because it seems like your trying to do it with one product and one price point. Plus being a lower price point, there is not going to be much, to be able to pay out.

      What not do like Victor mentioned, have upsells, or higher ticket products, where you have more dollars to hand out. Instead of 3 tiers for one low price point, make three upsells?

      Course don't know what you have, if that is even possible.

      Your right though, not much to get excited about so far, not enough to get many people on board. Unless it converts VERY well.
      Well my plan was to try and have 2 things:

      1) upgraded levels of service. So say for 100 bucks a month that gives you more functions that you can use in your membership. This also upgrades your affiliate status so you get paid on other 100 dollar (professional members) that join under you

      2) one time product sales: several items that a member can buy one time. so the refering party would earn money this way as well.

      Just debating if that's a good idea or not in terms of creating a way for existing members to earn more money after they join???
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