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What % To Pay Affiliates?

by MoneyStacker
19 replies
Hey warriors. I'm currently developing a java/c++/php web app based around internet marketing that will have a $40/month - $200/month membership fee for users. I want to develop it's Clickbank affiliate program, but i'm not sure what percentage I should pay out to affiliates. Any recommendations? Thanks!
#affiliate #affiliates #clickbank #internet marketing #money #pay
  • Profile picture of the author dvduval
    Well, I suppose you can change the offering later, but might want to start high to entice the first group of people to sign on.
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  • Profile picture of the author desmoines
    i have know idea what the product is you're talking about

    but i think 50%-70% on CB is fair
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  • Profile picture of the author CynthiaC
    It will depend on what you will need of course - but most offers on CB are 40 - 75% Some also offer private incentives/bonus's for number of sales.

    My suggestion would be to build up a bunch of hype at first with big payouts to get people wanting to promote for you. Then reassess.
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    • Profile picture of the author MoneyStacker
      What would you consider "high"? I have a JV Broker. If 75% goes to affiliates, 10% to my JV broker, and 10% to Clickbank, I am left with 5% of profits. . I might be willing to go this route if this brings me to the top gravity page, but otherwise....
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      • Profile picture of the author ForumGuru
        Banned
        Originally Posted by MoneyStacker View Post

        What would you consider "high"? I have a JV Broker. If 75% goes to affiliates, 10% to my JV broker, and 10% to Clickbank, I am left with 5% of profits. . I might be willing to go this route if this brings me to the top gravity page, but otherwise....
        Don't forget taxes!
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  • Profile picture of the author RyanLB
    Obviously the higher amount you pay them, the easier it will be to get affiliates on board. If it's a high priced product, you can go much lower and still make it an enticing product to promote.
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  • Profile picture of the author MoneyStacker
    Well, what do you consider a high priced product? The minimum $/month is $40 for my product... so with that kind of commission over a few months, I would consider that a tremendously high paying product. What do you think?
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by MoneyStacker View Post

    I'm currently developing a java/c++/php web app based around internet marketing that will have a $40/month - $200/month membership fee for users.
    That's a huge price-spread.

    What matters to the serious, pro-affiliates you want to attract to this recurring-income product (because they're the small minority-group of affiliates who will actually sell it successfully) will be the number of months for which the average subscriber remains subscribed. 30% of something that recurs for 6-8 months is worth far more than 75% of something that nobody renews.

    (Be aware that unless and until you have a history of successful, low-refund-rate trading with ClickBank, they'll impose a low-ish maximum price on you, for an initial product/service.)
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  • Profile picture of the author MoneyStacker
    Luckily, my web app isn't an informational product. I can't really disclose what it is (since it's still in development), but to be brief, it is something that the user pretty much NEEDS to keep on renewing once they get started .
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  • Profile picture of the author moneymakingpillarsx
    75% would best beside more people will want to promote your product over the once
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  • Profile picture of the author brutecky
    At least 50%. Also Ill be quite honest, just so you can prepare yourself.

    1) You will have to show affiliates that your product sells. You do this by selling it yourself.
    2) Even if you do this, if you dont know the affiliates, they probably wont affiliate for you.

    Im talking about the ones who actually make money, you will get lots of people who will want to affiliate but most will never make a sale. The ones who do make sales, well you will have to give them a reason to affiliate for you and commission is NOT enough.

    My last launch I gave away 50% on the front end, 50% on the UpSell (monthly) and $5000 in bonus cash prizes to affiliates for example.
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  • Profile picture of the author JensSteyaert
    If it's a good quality product, and the retention rate is high (over 6 months), then you shouldn't be giving over 50% affiliate commissions.

    Affiliates on clickbank will look at the $ per sale, not the % commission you give. But ofcourse it will take some time to build up so they can see proof.
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  • Profile picture of the author Randall Magwood
    I would offer 50%. I think this is fair and is the minimum that most affiliates are looking for in a Clickbank product.
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    • Profile picture of the author unclederek
      Learn how to drive traffic through facebook ads with adroll or perfect audience from the getgo... Then if your product converts the affiliates will jump on it regardless.
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  • Profile picture of the author Leon Zykos
    I will give 75% and it has been agreed in many areas that 75% seems to be the golden ratio for affiliates.
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  • Profile picture of the author celente
    i do well with clickbank. And when we asked the guy from truthabout abs, he shocked us.

    "he said the more you give you affiliates, the more you will make"

    Sounded stupid, till we maxed out our affiliate commision. Our volumes went up, and sales, and also cut.

    So that is why you see even some marketing gurus give 100% of profits. Some people think its nuts! NOPE cause they have other people building their list for them. SMARTEST thing you can do.

    Its about working SMARTER online, not HARDER! And beleive it of not I have just given two simple technicques to build a $xxx,xxx a month business.
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  • Profile picture of the author twranks
    50% is usually where to start from. As you gain reputation you can reduce it later.
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  • Profile picture of the author theo1995
    In my oninion you shold give a 75% in the front end and 50% in the back end.
    The best thing you have to do is to build 2 lists. On for the affiliates and one for your buyers. It will make things much easier in your next launch. I'm sure that your product will as it gives recurring commision and that's what affiliates want. What's better than promoting on time and getting paid every month?
    I wish you good luck and a lot of $$$ in your pockets soon!
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