Does 100% Commission Really Make a Difference?

Yes, because the back end sales from your list are far more important than the front end sales from your product. Giving 100% Commission is more of an incentive for affiliates to promote your product.

What is an email from a (presumably) paying customer worth to you and how many more sales will you get at 100% Vs. 70%?

Try to answer those questions with actual numbers and your best-guess estimates.

Scenario 1:

$20 - Price of product
70% - Commission given to affiliates
300 - Estimated sales
$2/month for 12 months - value to you for a paying subscriber

You'd get $1,800 cash out of the deal and $7,200 worth of subscribers. Total: $9K

Scenario 2:

$20 - Price of product
100% - Commission given to affiliates
400 - Estimated sales
$2/month for 12 months - value to you for a paying subscriber

You'd get $0 cash out of the deal and $9,600 worth of subscribers. Total: $9.6K

70% Option:
(Price Of Product X Estimated Sales X 30%) + (Estimated Sales X Email subscriber value X 12) = Total Value

Vs.

100% Option:
Estimated Sales X Email subscriber value X 12 = Total Value

Which is better? That's what you should go with!

Temper,

You will never know which is better until you test both approaches for a statistically significant sample size, track your results, and analyze what you find.

TryBPO has given you a couple of scenarios, but you must be careful because he is making some assumptions about each case, i.e., the price of your product, the number of sales for each approach, and the value of a subscriber over a year's time . . . all of which may or may not be the case. If you can plug your own valid data into these approaches - that's good. Otherwise, each of these variables will affect the outcome of your analysis.

If you don't have a "back end" then you should either get one or adjust your selling funnel accordingly.

Testing and tracking only works when you do it right: test one variable at a time, get a significant sample, and understand what you're doing and why.

Good luck to you,

Steve

Absolutely.. If your products are good, then there is a chance many affiliate will promote your products..
And since they will get 100% commissions, i know they will do their best

The launches or companies that blow up with kick butt launches are usually the ones that either convert the highest and/or have the highest payout possible.

If you can make your math work by giving away 100% on the front-end then you should. Heck if this is a launch through your own merchant account I'd craft a funnel where I could give away 200% commissions to my top affiliates if possible.

They'll get a higher "epc" (earning per click) and hit your launch really hard.

Is this your first launch, if so your going to have a problem anyways getting top affiliates without past epc's to go by and so forth, So I would say after you have everything setup but before you go live to start hitting the jv skype rooms, websites facebook rooms and so forth.

I know if you came to me and ask me to be an affilaite I would expect you to put me down for a .1 cent test link and I would go through your whole funnel to see if there was earning potential there. I would look at your salespage and your jvpage and really scrutinize it.

When you do this and they give you suggestions, dont say well I like it the way it is. Jump on the suggestions and get er done. They know what there talking about that is why there earning a full time living on the net.

The high-powered affiliates generally prefer 100% commission if you're unproven. After all, they're giving their list to you.

One way to increase your overall earning is to partner with a proven marketer and offer a bonus class to all front end buyers. The marketer provides lots of value and the product that is pitched at the end generally earns you 50%.

You forgot to mention your price.

And ultimately, most affiliates are looking at EPC and not commission.

I agree with Jonathon on this one. If you're paying me 100% of 1 product, what other products are in your funnel that I'm missing out on? That's my FOMO.. commissions.

I'd rather promote 50% commissions on 4 or 5 products in a funnel and get a commission from all the sales I generate.

I would say no matter HOW you slice the cake it definitely helps.

I mean we can argue back and forth all day about the intricacies of 100% vs. 50% vs. 75%, but at the end of the day....

Does anything beat 100%?

I think it depends on your backend. If you can offer an interesting oto sale where affiliates could get another 50% or so this could bump sales also. I personally would prefer something like 70% front end plus 50% high converting oto than only 100% of a $7 to $17 product...

I think it all depends on the sales copy and the conversion rates. 100% commission with a conversion rate of 0.1% is not nearly as good as 70% commission with a conversion rate of 5%.