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Are high dollar values a pro or con?

 
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  #1  
Old
Affiliate Manager
Join Date: January 18th, 2005
Location: Ontario
Posts: 647
I've been reviewing many of the threads here, and I have a question...

Does a site that sells higher $ value items appeal to you, or seem like a pain?

The reason I ask is that Rugman sells Oriental and Persian rugs - not a cheap item. Even with the 80% off we offer, the average sale still comes in around $500.

Is that a big selling point (e.g. 12% of $500 on a single sale), or a detriment???

Opinions?

Paul

www.Rugman.com
Where the World Comes to Buy Rugs
  #2  
Old
Resident Genius and Staunch Capitalist
Join Date: January 18th, 2005
Location: Florida
Posts: 12,817
I like them both--High dollar and "midrange".

The (relatively) cheaper stuff coming in all the time is nice, because I hate dry periods.

But the really expensive stuff is nice too, because there's nothing like seeing a HUGE commission sitting there, either! But I don't get as many really big sales as I do with the midrange.

So I like a variety of price ranges, as long a sale brings me a decent commission and respectable percentage.

The only things I don't like are the really cheap items where even if you sell tons of it, it doesn't add up to anything to speak of. Even without actively advertising that stuff, sometimes people will find cheapie items on a merchant site dedicated to something more expensive. I've had people buy curtain rings but not curtains, for instance...even though my site doesn't even *mention* the existance of such a cheap thing at the merchant!

~Revenue is King
  #3  
Old
Affiliate Manager
Join Date: January 18th, 2005
Location: Ontario
Posts: 647
I can see how that would be a pain, having lots and lots of sales, but no money to show for it.

Thanks for the input.

Paul

[This message was edited by PaulS on May 27, 2003 at 09:26 AM.]
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  #4  
Old
Member
Join Date: January 18th, 2005
Posts: 111
12% is not a big commission.

Rosalind Gardner earned $436,797 in 2002 by promoting only affiliate programs. She reveals ALL her secrets step by step in her Super Affiliate Handbook (267 pages) www.renio.biz/rosalind/
  #5  
Old
ABW Ambassador
Join Date: January 18th, 2005
Posts: 1,447
High Value Items:

Pros
  • High Commission
  • High value items can add some class to your site, depending on the item e.g. promoting a very rare item of antiquity, or art from a well known artist[/list]
    Cons
    • Low conversions due to price
    • Higher chances of fraud (if a person is going to use a bad cc they usually figure they might as well get the best)
    • Though it is great to see the high commission added to your account, with CJ there is often the HUGE disappointment of it being reversed![/list]
      Big Chuck
      www.bigchuck.com
      **Web Consultants**
      Stay Tuned For Something BIG
  #6  
Old
Assistant Regional Manager
Join Date: January 18th, 2005
Location: New Zealand
Posts: 865
quote:
12% is not a big commission.

It's bigger than 10% and it's a nice chunk of change if youre selling items that cost $500 or more. Imagine selling Plasma TV's for 12% commission compared to 5% or under.

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  #7  
Old
ABW Ambassador
Join Date: January 18th, 2005
Posts: 843
A couple recent sales of mine:

Bose $500 ....made $15.00

Fabric.com $1.00 ...made $.08

The pros and cons of the situation: one commission goes in your billfold...the other jingles in your pocket
  #8  
Old
Affiliate Manager
Join Date: January 18th, 2005
Location: Ontario
Posts: 647
Considering we had an affiliate order worth over $7,000 last month... 12% seems like plenty to me.

But maybe that's just me.

Paul


Rugman.com (Merchant Through CJ)
  #9  
Old
Resident Genius and Staunch Capitalist
Join Date: January 18th, 2005
Location: Florida
Posts: 12,817
12%'s a lot better than whatever Bose is paying, that's for sure! $15 on a $500 item, cheez...I'd only have to see THAT once to be dancing on their Drop Program button, the cheapskates! It should have been AT LEAST $50-$60.

Of course, even more is always merrier!

~Revenue is King
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  #10  
Old
ABW Veteran
Join Date: January 18th, 2005
Location: Santa Cruz, CA
Posts: 4,591
hmm: Oskars your sig is a advertisement. you really should remove that from your sig. that is not allowed on abestweb. and 12% is fine for a high ticket item compared to 3% or 5% in that matter.

goal: $5000 a month by 11/26
Financial free by 2004.
Jason- Santa Cruz, CA
  #11  
Old
ABW Ambassador
Join Date: January 18th, 2005
Posts: 1,916
I'll sell the under $100 items all day long. I'll sell the under $1000 items at (censored) too.

Really its about EPC and ROI and BSDM....

----
-JM
ABW Chief Whiner. Sir *****alot.
  #12  
Old
Affiliate Manager
Join Date: January 18th, 2005
Location: Ontario
Posts: 647
So, to recap...

For higher $ values, conversion tends to be lower (I can see that) but the payoff is bigger when it does happen, so it sort of balances.

With some exceptions, 12% is a fair commission rate for a higher $ value, although major performers would like to see a "bump up" in commissions... which I also think is fair.

Thanks for the feedback. We're in the process of improving the overall program, so this helps.

Paul


Rugman.com (Merchant Through CJ)
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