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Setting up an affiliate program for my physical product.

by kyoo
14 replies
So, after getting over my shock from a few days ago, I've worked with my partners and come up with a way to modify my physical product's offering so I can offer affiliates up to a 50% commission, in a more attractive price point, without having to discount the overall price.

So, how would I go about actually offering such a program? Would I look for individuals, or go through some affiliate aggregator? I think the popular ones discussed here only deal with digital products - how would I start offering an affiliate program with physical product?

I'm a complete newbie to IM, so sorry if this is obvious to many of you.
#affiliate #physical #product #program #setting
  • Profile picture of the author stoltingmediagroup
    Originally Posted by kyoo View Post

    I think the popular ones discussed here only deal with digital products - how would I start offering an affiliate program with physical product?
    Why not go check out some of those popular ones discussed here? If you do, you may be surprised to find out that many (such as Clickbank) offer the ability for Shippable Media, etc.
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  • Profile picture of the author rdpayne
    You will have to use some sort of shopping cart system to keep track of sales and commissions owed. Probably the easiest way to go is to use a plug-n-play system like e-junkie, which handles affiliate sign-up, commission tracking, and sales.

    If you want to control everything through your own website and you are using Wordpress, I would recommend the WP Affiliate Platform + WP eStore Plugin bundle here: http://www.tipsandtricks-hq.com/products
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  • Profile picture of the author ChrisBa
    Originally Posted by kyoo View Post

    So, after getting over my shock from a few days ago, I've worked with my partners and come up with a way to modify my physical product's offering so I can offer affiliates up to a 50% commission, in a more attractive price point, without having to discount the overall price.

    So, how would I go about actually offering such a program? Would I look for individuals, or go through some affiliate aggregator? I think the popular ones discussed here only deal with digital products - how would I start offering an affiliate program with physical product?

    I'm a complete newbie to IM, so sorry if this is obvious to many of you.
    You could setup your own program with a program like jrox or idevaffiliate, the problem is you need to get the word out to attract affiliates. Or you could use a network like clickbank, they will take care of your tracking and they have several affiliates that can find your offer in their marketplace
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  • Profile picture of the author keyon
    A few months ago I attempted to set up an affiliate program for one of my physical products, and I was surprised how many people were geniunely confused by what I was trying to do. Clickbank was not much help--although they do have a "physical product" program, for some strange reason they allow only "media" related products, like DVDs. I've also been puzzled by the response I've received from many online retailers, who are willing to pay me 50 percent wholesale for the product, but turn down my offer to give them 50 percent commissions from an affiliate link.
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  • Profile picture of the author lotsofsnow
    Originally Posted by kyoo View Post

    So, after getting over my shock from a few days ago, I've worked with my partners and come up with a way to modify my physical product's offering so I can offer affiliates up to a 50% commission, in a more attractive price point, without having to discount the overall price.
    50% commission for a physical product sounds a little unusual unless you deliver
    an information product on DVDs or something.

    Without knowing the actual product it is impossible to recommend a solution as it really depends on exactly what you are selling.

    Shareasale could be correct or CJ could be good or a CPA network could be correct. This is just to name a few. For every product there are 2 or 3 affiliate solutions that are best and many that would work somehow and an abundance that would not work.
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    • Profile picture of the author kyoo
      25-30% isn't that unusual in the bricks and mortar world, and putting in a 5% commission for sales is always part of the plan. We're currently selling the product at big box and independent stores, but need exposure.

      If affiliates are willing to move a large package (a one year supply), then we can lower our per unit overhead to do ok at 40% and survive the loss at 50%. This helps us get awareness in the market and creates a base of reorders that may hit the big boxes or may hit the affiliates or Amazon.
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      • Profile picture of the author accofranco
        Originally Posted by kyoo View Post

        25-30% isn't that unusual in the bricks and mortar world, and putting in a 5% commission for sales is always part of the plan. We're currently selling the product at big box and independent stores, but need exposure.

        If affiliates are willing to move a large package (a one year supply), then we can lower our per unit overhead to do ok at 40% and survive the loss at 50%. This helps us get awareness in the market and creates a base of reorders that may hit the big boxes or may hit the affiliates or Amazon.
        Check my blog out. I posted it above...I am from Nigeria...and I have good traffic....including visitors from US, UK, Canada, India....Russia....South Africa, etc....and Nigeria of course...so can you private message me what your product is all about and can you ship to Nigeria? I will love to market it for you on my blog and fan pages....if you wouldn't mind and if you guarantee me that I will get my commissions on time without hassle.

        Waiting to hear from you or any other physical product owner here. I am more interested in products like: stretch mark remover, vagin*a tightener, weight loss....anti-wrinkle creams, etc.
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  • Profile picture of the author derekwong28
    Your best bet is Sharesasale for physical products. It is very difficult to get into CJ or Linkshare unless you have a good record of high revenue.
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  • Profile picture of the author derekwong28
    It is very difficult to set up a successful in-house affiliate program unless your business is already well known. The stumbling block is whether prospective affiliates are going to believe that they will be paid. The net is littered with stories about affiliates who have scammed by merchants after paying thousands in advertising costs.

    One possibility is to employ a professional affiliate management such as AMWSO in Thailand. They will manage the affiliate program for you as well as to recruit affiliates. One technique used is to scan the websites that come out on top of a targeted search term and then ask the owners whether they are interested in joining your program.
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  • Profile picture of the author desley
    A very interesting question and dilemma. Amazon also shifts quite a lot of different physical products without having to try and set up your own Affiliates programme.

    Have you also thought of EBay as a way to sell and shift products - this may or may not be applicable in your situation - as others have said it's hard to know when you haven't mentioned what the product is - however have referred to big boxes. If you're going to provide affiliates with a commission - could you as a way of getting a wee bit more exposure sell the products on EBay for a wee bit less i.e. minus what you would be paying in affiliate commissions? Just a thought?

    Sorry I can't be of further assistance.
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    • Profile picture of the author kyoo
      Originally Posted by desley View Post

      If you're going to provide affiliates with a commission - could you as a way of getting a wee bit more exposure sell the products on EBay for a wee bit less i.e. minus what you would be paying in affiliate commissions?
      As a general rule, we don't discount the price to the consumer, because that eats your value proposition - it's a vicious road to discount yourself into being a winning brand. If all of your exposure shows you as a premium product, then your customer thinks of you that way, and the rest of Cialdini's bag of tricks (reciprocity, social proof, authority, liking, authority) become so much easier.

      To me, anyway, providing steep discounts tells your customer you think less of your own product - and, of course, means you lose margin you need to grow your business. As part of backend compensation on high volume, it can work; as a customer-facing tool, it often starts the race to the bottom.

      In addition, it can be difficult to train a customer on a price and then raise it later. "Introductory" pricing usually results in short-term gain and long-term loss or at least re-selling, not a position a serious business wants to find itself in.

      To the previous message about affiliates not wanting to deal with scammers: I honestly hadn't even considered that part of all of this for the same reason.

      I, my investors and my workers are in this to build a serious long term business. I'm unfamiliar with dealing with others that aren't the same way. Thanks for the heads up.
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  • Profile picture of the author kyoo
    In addition, your other partners, IE, the big boxes, don't appreciate you undercutting them on price.
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  • Profile picture of the author Randall Magwood
    Maybe you should check out "1shoppingcart .com". I'm sure this will suffice for your needs.
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  • Profile picture of the author Path Theory
    You have to slowly build your relationships with your affiliates.

    They need to start very small and slowly work their way up with selling your product. You also need to be willing to pay them as frequently as they would like. I pay my affiliates every three days, and this is for a physical product(s)

    Have you thought of FaceBook Advertising? It is very easy to do, and you don't have to have affiliates just yet.

    If you can get on facebook, start spending money on ads and start selling your products. That will build a track record you can show to you affiliates that your product will sell.

    FB starts you off at max spend limit of $250 a day, but you can target all the views. I pretty much almost triple the amount of money I put into FB every day. I am only limited by the number of accounts and spend limits fb puts on me.
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