17 {{ upvoteCount | shortNum }}
17 {{ upvoteCount | shortNum }}

Would you prefer 30% recurring commission or $50 for each free trial?

by dsiomtw
15 replies
So we're getting ready to launch an affiliate program for our IM product. It's $47 a month, and I'm trying to get an idea of what people prefer in terms of affiliate commissions for this type of product.

It's a solid product. Think of something like Aweber or LeadPages for example. A kick-ass service that just about any IM'er can profit from, and will use for a relatively long-time.

Most of these types of subscription-based SaaS products seem to offer a 30% ongoing commission, which we could easily do. That was the plan. But 30% of $47 is only about 14 bucks a month and that just doesn't sound very exciting...

Another option is that we offer a 14-day free trial of our product, and we could pay affiliates something like $50 per free trial signup they generate. We know how to deal with and prevent fraud etc, so that's no problem, and it seems like this might generate more interest in terms of getting people to mail our offer, etc.

If we went this route anyone with a decent list could send out one promo and easily make at least a few grand just for telling people how to get a free trial of our killer service. Less than 10% of users cancel during their 14-day free trial, so this would work fine for us as well...

So, what would YOU prefer?
#$50 #30% #commission #free #prefer #recurring #trial
  • Profile picture of the author Klemen Znidar
    Well if people will stick with it, recurring all the way. However if it's a more "hit and run" type of product, then I'd want to have my money upfront

    That's my personal preference
    Signature
    DOUBLE your sales on ANY website - ClickTrait
    {{ DiscussionBoard.errors[9000457].message }}
    • Profile picture of the author Shane F
      Some companies give the affiliate the option and you can provide an affiliate link for upfront $50 and another for the 30%. I always choose residual payments since the outcome can be much greater than choosing the money upfront provided this is a service the customer needs and wants for more than 3 months.
      {{ DiscussionBoard.errors[9000493].message }}
  • Profile picture of the author Freelancing10
    Since the marketer is doing most of the work in the marketing process, why not offer 50% recurring commission? There was a thread here on Warrior Forum where someone asked, whats the least % you would take to promote an affiliate product, and most said, 50%-70%. I know that decreases your profit, but that will allow more marketers to promote your product, and profits might increase.

    Most people prefer recurring since its month after month, but a $50 one time, sounds pretty promising as well. The problem is, is there an upsell in the back-end that can get a higher commission? It almost seems not worth it.
    {{ DiscussionBoard.errors[9000488].message }}
    • Profile picture of the author dsiomtw
      Originally Posted by Freelancing10 View Post

      Since the marketer is doing most of the work in the marketing process, why not offer 50% recurring commission? There was a thread here on Warrior Forum where someone asked, whats the least % you would take to promote an affiliate product, and most said, 50%-70%. I know that decreases your profit, but that will allow more marketers to promote your product, and profits might increase.
      It would be pretty tough to offer a 50% commission on a "substantial" SaaS product as there are lots of additional costs involved to provide the service, unlike an info product.

      Off the top of my head I can't think of a solid SaaS service/product that offers an ongoing 50% commission. Stuff like Aweber, GetResponse, LeadPages, etc. all generally pay right around 30%.
      {{ DiscussionBoard.errors[9000553].message }}
  • Profile picture of the author Marco Moeschter
    $14 bucks is not a lot of money but if it's a product which really can help people and therefore easy to promote then I would go with the 30%!
    Signature
    [FREE WSO] End your search for Traffic once and for all! Download Your 500 Traffic Source Cheat Sheet Now!
    {{ DiscussionBoard.errors[9001154].message }}
  • Profile picture of the author Kenster
    Affiliates are in business to make money.

    Whichever model has the highest value per referral will get the most affiliates 90% of the time. Generally big affiliates will want referral value before promoting anyway so you'll need to know it. In your case, you'll need to optimize your retention like like a madman/woman!
    {{ DiscussionBoard.errors[9001250].message }}
  • Profile picture of the author RobinInTexas
    It all depends on the prospective affiliates judgement about your product and your conversion/retention ability.

    Are people going to stay more than 3 months? Or will they do the trial and run? How good is the product?
    Signature

    Robin



    ...Even if you're on the right track, you'll get run over if you just set there.
    {{ DiscussionBoard.errors[9001268].message }}
  • Profile picture of the author dean20653
    Why Cant you do both? .. Sort of

    Lower your trial time and payout then, pay the % on the conversion.

    Like an Autoresponder I am an affiliate for does 1.00 on their 7 day trial and then 25% recurring when they flip to a full paid member.

    So Whats saying you can't do 10 for a 7-14 day trial and then 30% on the backside when people convert to full customers?

    Just a thought! Good Luck
    Signature

    After 20 years smoking, ecigs FINALLY help me quit!
    Quit smoking today, and use that money to invest in IM

    {{ DiscussionBoard.errors[9001289].message }}
  • Profile picture of the author dsiomtw
    Thanks for the replies. Yeah we are now contemplating something along the lines of paying 100% commission on the first month, and then the "standard" 30% or so (standard for this type of product). That way the affiliate can earn a nice "quick" buck upfront after the 14 day trial, and then 30% recurring after that. Due to the nature of the service, people inherently continue using it a long time.
    {{ DiscussionBoard.errors[9001367].message }}
  • Profile picture of the author David Braybrooke
    I agree with Dean, I like the 'both' option. A smaller commission to begin with then recurring income where applicable. I'd love to see affiliate programs offer more performance bonuses as incentive. You sell a set volume of product, they give you a bigger payout etc. Maybe the commissions should increase by a reasonable margin, when certain milestones are reached. Super affiliates may be more inclined to join up if reward for effort was encouraged. Good luck with your launch!
    Signature
    "The scientific theory I like best is that the rings of Saturn are composed entirely of lost airline luggage." - Mark Russell
    {{ DiscussionBoard.errors[9001386].message }}
  • Profile picture of the author bwh1
    I think a 50 bucks one time for a free trial will not be a sustainable business model if your monthly retainer is only $47

    If you can manage to keep 10% of those free trials you just spend $5'000 in commissions to make $4'700 if 1000 people join. You not even break even in the first month.

    And hopefully they stick with you for more than 3 month. Refunds not calculated.

    I think you have to run that first for a few month to see what's best for you AND the Affiliates. You both are into this for the money.

    G.
    Signature

    Affiliates Wanted! Make anywhere from 42,- to $72 in commissions. Simply Recommend the Best QuickBooks Pro Video Course available at Clickbank.

    {{ DiscussionBoard.errors[9001431].message }}
  • Profile picture of the author dsiomtw
    Keep 10% of the free trials? We've kept 84% of people who've signed up for a free trial. This isn't some scammy ClickBank biz opp ...

    Thanks for the replies all. That's what we're going to do. A nice upfront commission plus a nice recurring commission, plus some kind of performance incentives as well.
    {{ DiscussionBoard.errors[9001445].message }}
    • Profile picture of the author bwh1
      Originally Posted by dsiomtw View Post

      Keep 10% of the free trials? We've kept 84% of people who've signed up for a free trial. This isn't some scammy ClickBank biz opp ...

      Thanks for the replies all. That's what we're going to do. A nice upfront commission plus a nice recurring commission, plus some kind of performance incentives as well.
      With over 80% you can definitely offer both, a incentive for free trials and a recurring commission.

      You maybe don't go for 50 bucks but run weekly contests with great prizes for the best 10 Affiliates so they can make even more than 50 and you get super Affiliates on board.
      Signature

      Affiliates Wanted! Make anywhere from 42,- to $72 in commissions. Simply Recommend the Best QuickBooks Pro Video Course available at Clickbank.

      {{ DiscussionBoard.errors[9001485].message }}
  • Profile picture of the author Geeked Labs
    I would prefer a $50 commission.
    {{ DiscussionBoard.errors[9001491].message }}
  • Profile picture of the author WillR
    Can't say. It depends how good your stick rate is. If most people cancel after the first month then a recurring commission is no good to me. I want whichever one is going to earn me the most money. You must know what that is and so that is what you should offer your affiliates. Happy affiliates will go out and get you even more customers.
    Signature

    .


    .

    {{ DiscussionBoard.errors[9001503].message }}

Trending Topics