why would anyone promote 40% comm. product

10 years ago

It depends on the product. I mean, Amazon, for instance, pays a lot less. Running an enterprise and an affiliate company is costly and hard work. If anything, I think the typical affiliate works a lot less than the companies they promote.

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Ben Holmes

10 years ago

They don't need the traffic.

It's just that simple.

If you're a product owner, you barter your profits for the traffic - to get the customers on your list. The person you're referring to either doesn't need the traffic - or doesn't understand the value of a buyer on his list.

And - by the way - you can make quite a bit of money on 40% commission - talk to any Amazon Affiliate working with 8%.

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TinkBD

10 years ago

I guess it depends on WHY you are promoting... If sales are your single objective, then obviously it doesn't make sense...

If building a long term relationship with a targeted list is your goal, then it may make sense.

I am extremely picky about what I promote, and I have even been known to send out emails with only free resources... I generally get thanks from my list when I do so...

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NK

10 years ago

I would see how much that 40% converts into dollars, and also how well it actually converts.

A 40% commission from a $100 product that converts well is better than a 90% commission offer at $30 that converts poorly.

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tristatemedia

10 years ago

it is a 47 dollar product where i get %40 but it is a hot product.
it is recurring billing

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Tsnyder 10 years ago

Originally Posted by tristatemedia

it is a 47 dollar product where i get %40 but it is a hot product.
it is recurring billing

There... see... you answered your own question.

Hot product... recurring billing... you should be promoting 10 of these... lol
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Tom Addams

10 years ago

EPC is the real figure you want to know.

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ChrisWJohnson

Banned 10 years ago

For me commissions rate is not important. I need EPC(Earning Per Click) or unique visitor value. Some vendors offer low commissions rate but sales page converts really well. So if you send quality traffic to those type of offer you will simply get sweet profits.
Chris

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M3C

10 years ago

Would you prefer a 10% commission that pays you $10k or a 95% commission that pays you $50.

Ultimately the commission % is only relevant if you know the total value that commission returns, which you have not provided.

I'm pretty happy taking 10% of something selling for $10k for example - presuming it converts.

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DWaters

10 years ago

Originally Posted by M3C

Would you prefer a 10% commission that pays you $10k or a 95% commission that pays you $50.
Ultimately the commission % is only relevant if you know the total value that commission returns, which you have not provided.
I'm pretty happy taking 10% of something selling for $10k for example - presuming it converts.

Very well said. The percentage is not that important but you have to look at the picture. Is the product super easy to sell? Is it recurring leading to passive income in the future? Remember - Ten percent of a million dollars is 100K.....

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Tsnyder

10 years ago

Originally Posted by tristatemedia

hi
is there any reason why anyone would become an affliate for a 40% commission afflaite product. we do all the hard work and the owner makes most of the money.
WHAT THE HELL ARE THEY THINKING??????????

Is this a serious question? How many reasons do you want?

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Barry Unruh

10 years ago

Originally Posted by tristatemedia

hi
We do all the hard work and the owner makes most of the money.
WHAT THE HELL ARE THEY THINKING??????????

I suspect they are thinking....

We created the product.
We support the product.
We deliver the product.
We own the product.
We are paying offering a recurring income, so 40% is very fair, since we shoulder all of the ongoing costs, support issues, and challenges.

I doubt you are doing all of the "hard work", since you are just sending traffic, not product creation and support. Maybe it is time you try that side of the game and see which is easier.

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Steve B

10 years ago

Originally Posted by tristatemedia

hi
is there any reason why anyone would become an affliate for a 40% commission afflaite product. we do all the hard work and the owner makes most of the money.
WHAT THE HELL ARE THEY THINKING??????????

Sales and referral commissions in many industries are 3-10%. There are so many other factors that relate to sales . . . I don't think you've thought this question through very well. Here's just one reason to rethink what you're believing.

Conversion. I would rather have a 40% commission on a very hot selling product . . . any day . . . over a 75% commission on something that no one wants or buys.

This is basic selling math that every Internet marketer needs to learn.

Steve

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lerxtjr

10 years ago

Sales and referral commissions in many industries are 3-10%

yeah, i'm sure the author of this post is used to digital web marketing wso's. Sell a network of computers to a 100 employee company and you're not going to get more than .5%.

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RySpencer

10 years ago

If the product converts and has a high price tag, sure, why not.

You think that marketing and finding buyers for a stellar product is the hardest part? You are wrong.

Making a good product is very hard. Whether it be physical or digital, the is a lot of work involved.

Just don't promote shit products at all, especially those with low commissions.

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Gene Pimentel

10 years ago

I'd gladly promote a product for 5% if the conversions were right.

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JohnMcCabe 10 years ago

Funny, the last time I tried to buy something with a commission rate, they refused. Seems they only wanted to be paid in real money.

Whether you're an affiliate or a product owner, it all comes down to basic economics.

As an affiliate sending visitors to an offer, you're main metric is visitor value - how much is every visitor I send worth to me? Then you pick the offer with the highest value regardless of percentage.

As a product owner, you do the same math. What's the highest commission I can offer that still nets me (keyword "nets") the visitor value to make all the back office stuff worthwhile? Unless you're on some kind of volume bonus deal (like a car dealer) "losing a little on every sale and making it up with volume" just doesn't make economic sense.
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Karen Blundell 10 years ago

do you know how hard it is to create a really hot product? Do you know how much risk is involved with having affiliates market for you? A bad affiliate can shut down a business overnight - it happened to someone I know.

40% commission on a high converting offer is a good deal, in my opinion.
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AmericanMuscleTA

10 years ago

One of my affiliates pays me 40% commission... and I thought I hit the jackpot.

To each their own I guess.

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Miss Lisa

10 years ago

Because the owner of the product has all the rights to control the promotion process and to determine the commission , and of course you have to choose the most suitable offer from the different products owners also you will notice that each company has it's commissions style so it is not always 40 % for all products . consider that you are the owner of a certain product you will need to take the big percentage of the sale process right ? you will not accept less than 60 or 70 % of the product price ...

Good Luck ...

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NestZone

10 years ago

40% is very reasonable.
It is a figure difficult to arrive at buy product owners, but for the sake of sale, they just have to let it go.

You can expect higher percentage such as 70-90% in products like online pharmacies which also have their own shortcomings.

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why would anyone promote 40% comm. product

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