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  1. #1
    Affiliate Manager izzyprints.com's Avatar
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    What is a good commission rate
    So I'm setting up an account with Share a Sale and I'm wondering what is a higher than average commission rate for my type of business? The site is a relatively unknown and at least temporarily, I want to give ALL affiliates who join my program a nice incentive to work with a new company. I've done some research and I'm thinking about giving 20 percent on all sales. The average order should be around $40 - $50 dollars. I've looked at a few similar sites and I see those companies giving like 5-6 percent so I think that 20 would be great but I wanted to ask some seasoned vets. I'm sure if I was able to give you my site you would be able to get a better idea of what I'm selling but I'm not sure if I could do that and not get banned. This message, "Do NOT Post Affiliate URLs or links - it is a violation of our policies!", scared me so any help would be appreciated. Thanks.

    Torrel Alexis

  2. #2
    Affiliate Manager izzyprints.com's Avatar
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    Come on, I know someone has an idea of what type of commission they would like to receive from a $50 sale. Is there any other information I could give that would make this question easier to answer?

  3. #3
    Full Member ske9963's Avatar
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    Quote Originally Posted by izzyprints.com
    Come on, I know someone has an idea of what type of..
    1) welcome
    2) Don't be too pushy. you post on Sat night at 8pm asking for help/question and expect an answer in 2 hrs ???
    3) My 2 cents. Make your program better than other ppl. There is no right answer.

    All the best
    Ma, where the beer? :escape:

  4. #4
    Beachy Bill's Avatar
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    Quote Originally Posted by ske9963
    .....2) Don't be too pushy. you post on Sat night at 8pm asking for help/question and expect an answer in 2 hrs ???
    And on the Saturday night before the Sunday start of Affiliate Summit in Las Vegas, where a good number of the ABW active members are right now.
    Quote Originally Posted by ske9963
    .....[3) My 2 cents. Make your program better than other ppl. There is no right answer.....
    I concur. Make it a clean program, on a good-converting site, and with affiliate terms that beat the others in your market.

    And, welcome to ABW.
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
    Cute Personal Checks and Business Checks
    If you are too busy to laugh you are too busy.

  5. #5
    Troll Killer and best Snooper!
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    I don't get out of bed for less than 10% with a 30 day cookie. I don't get excited unless the commission is 20%+. But as others have stated, if your site is affiliate friendly (no leaks, commissionable phone sales, good navigation, easy-to-use cart) and you're not partnering with parasites, well that's the first step.

    It's hard for most of us to say what your commission rate should or could be because we don't know what your markup is. I'm guessing you don't make a lot of money on the sale of a single card, but do very well on the sale of multiple cards. If that's the case then you might consider a sliding scale where sales under $10 = X%, $10-$50 = 2X%, $50+ = 3X%. I'm not suggesting those numbers as absolutes, just giving an example of what might be done.

    Will you have any pet themed cards? I could especially use cats, dogs and horses.

  6. #6
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    The industry you're in is probably the most important factor in setting a commission rate. That's a huge factor. Someone who sells web hosting might need to pay 400% (of the first month's fees) to be competitive. Someone selling deep-discounted computers might do well with 1%. If you offer better pricing, then a lower commission may result in more earnings than a higher percentage from a competitor who charges high prices and thus has a lower conversion rate. There is no "general rule."

    The place to start is always looking at your competitors. If you have 5 major competitors who each offer a 30% commission, then 20% is likely to be "hard to sell" to affiliates. (Not impossible, if there are good reasons, but challenging.) If all of your competitors promise 10% or less, and you offer 20%, then some affiliates may wonder if your offer is "too good to be true."

    There are also many factors that could lead affiliates to igore the most generous commission offer. For a brief analysis of factors that affiliates consider when choosing which programs to join, see http://www.markwelch.com/web-marketi...in-factors.php -- and be sure to check out the "Merchant Best Practices" forum here.

    FYI, your "privacy/security policy" doesn't include any privacy policy at all; it only discusses privacy and security for your third-party payment processor, but doesn't discuss YOUR security measures or YOUR privacy policy. And the formatting of your "Contact" page is poor - I'm not sure why the address info is double-spaced (when I first looked, I thought there was no address on the page at all).

  7. #7
    Affiliate Manager izzyprints.com's Avatar
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    Hey everyone, thanks for the great advice. Sorry if I seemed pushy, I didn't realize the forum was set in the GMT zone. I'm based in LA, CA where its always sunny, well not today, its raining but you get the point.

    Rhea, I took much advice from an online seller that I know so I believe that Izzyprints is a pretty affiliate friendly environment. Although we do have a phone number its more for business contact and support. All orders will be placed through the web site. Oh, and to answer your question,
    "Will you have any pet themed cards? I could especially use cats, dogs and horses."
    ,
    yes we will be. We currently have one or two animal themed birthday cards but not enough to make a whole section. We are already in the process of making more animal themed cards.

    Markwelch, thanks for the great info. I have checked around and from what I've seen a lot of sales commission start below 10% with the ability to go higher. I think I do have a higher than normal sales commission but its mostly to help get my company off the ground. What I don't want to do is scare any good affiliates away with my high commission. One thing I know I can do it fix those company info pages.

    Thanks for all the great advice guys, Markwelch, I'll take a look at those links you provided. Thanks again.

    Best,
    Torrel Alexis

  8. #8
    web dev with whiskers tn-morgen's Avatar
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    Myself, I look at the quality of the product, too. If I can get a crappy product sold to my customer who may return it or blame me for recommending it - and get 20% comm - who cares!?!

    If the product is good, repeat sales are good & my customers rave about it to potential customers, then 6% is great!

  9. #9
    Newbie happybell's Avatar
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    There is certainly a minimum commission that is going to be profitable for you. However, I think much more important is the brand, average order amount and frequency of their customer shopping patterns. For example, Sears only offers 2% for the most part, but their average order is higher thanks mostly to appliance and lawn & garden sales, and they have a big brand name and fairly loyal customer base. So while I normally would not think 2% is good, in this case it is. Don't get stuck on commission amount only - look at the bigger picture.

  10. #10
    Affiliate Manager izzyprints.com's Avatar
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    This has all been very helpful. I've gotten a good feel of what you guys are thinking. Thanks.

  11. #11
    http and a telephoto
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    Having links that go to empty sections is a turn off for affiliates also....
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  12. #12
    Affiliate Manager izzyprints.com's Avatar
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    Yeah, there are some sections that are labled "coming soon" We will be loading those sections with cards in the coming weeks.

  13. #13
    http and a telephoto
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    Quote Originally Posted by izzyprints.com
    Yeah, there are some sections that are labled "coming soon" We will be loading those sections with cards in the coming weeks.
    Hide them until they have products, certainly don't have the links prominently in your header. That looks unprofessional and will scare shoppers away.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  14. #14
    Life is Supposed to be Fun! Rexanne's Avatar
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    Hi Torrel and a belated welcome from another Los Angelina!

    Do you or will you have a data feed available for your products? If yes, are you on Pop Shops?

    To answer your initial question: 20% would be a nice incentive to get affiliates working with you, however, if you then drop it lower, you'll just piss everyone off. Best to offer what you can afford long term - naturally, the higher, the better if it's stable.
    Peace,

    Rexanne

    Rexanne.com
    Loving Everyone's Child Creates Magic


  15. #15
    Affiliate Manager izzyprints.com's Avatar
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    Loxly-It looks like I had a bad script on some of the view all links. It might be why you saw no products in some of the sections. Thanks for finding that. I could've swore I checked this links. You gotta love technology

    Torrel Alexis

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