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  1. #1
    Full Member Jim Guinn's Avatar
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    How do you deal with crazy high affiliate commissions so common today?
    I belong to a number of affiliate forums and other forums that have highly interactive affiliate forums. I find many affilates seem to be "hung up" on affiliiate programs that offer 50%, 60%, 75% or higher affilate conmmissions. Of course, most of these are programs offer intangible downloads. I offer food products. Most of the major food product affiliate programs offer anywhere from 4-10% commission. I am offering a 15% commission, a 90 day cookie, and monthly payouts with NO MINIMUM. How do I overcome this "stigma" where affiliates want 50%, 60%, 75% or higher since I offer one of the highest commissions, one of the best cookie periods and one of the best payout schedules (no minimum) in the food affiliate industry?

    Any constructive feedback is appreciated.

    Jim

  2. #2
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    It's just a different kind of affiliate marketing in a way so you really don't have to overcome anything. Like you said, that's more download type of stuff. Some people are more into CPA type of stuff, I do what I like to call mainstream affiliate marketing in the sense that the merchants I partner with actually sell products and a lot of them can be found at the local mall. So I wouldn't worry about it, it's just different.

  3. #3
    Analytics Dude Kevin's Avatar
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    Just worry about remaining competitive with the programs in your vertical on:

    Price
    Service
    Commission

    The rest will work itself out.
    Kevin Webster
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  4. #4
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    I pesonally don't do any of those 50% or higher commissionable items.

    You have nothing to worry about. You are not competing with those programs, so you shouldn't care what they are offering. If you have a good product base and a solid program, you will get the right affiliates promoting you.

    2 different types of affiliate marketing

  5. #5
    Full Member Jim Guinn's Avatar
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    Perhaps I am making the mistake of trying to attract affiliates who will never have an interest in my program because my commssion rates are "low"...according to them, not according to the industry. Maybe I need to target food and recipe affiliate marketers more aggressively who will appreciate my affiliate program for what it offers and realize my program will never be "popular" with the mainstrean of today's affilaite marketers.

    This certainly is a specialized niche.

    Jim

  6. #6
    Life is Supposed to be Fun! Rexanne's Avatar
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    Quote Originally Posted by Jim Guinn
    Perhaps I am making the mistake of trying to attract affiliates who will never have an interest in my program because my commssion rates are "low"...according to them, not according to the industry. Maybe I need to target food and recipe affiliate marketers more aggressively who will appreciate my affiliate program for what it offers and realize my program will never be "popular" with the mainstrean of today's affilaite marketers.

    Jim
    Jim, if everyone else in your niche is paying 4 to 10%, don't even worry about the merchants paying out 50 or 70% - they're not the same target audience and really have nothing to do with what you pay.

    Affiliates who sell tangible products won't think you're off base by paying the standard in your niche - we're all aware of what that is and if you pay top dollar for your niche, you'll be fine.

    PS: stop hanging out in forums where the members think anything less than 50% commission is not a valid payout. They're pushing air, not real products.
    Peace,

    Rexanne

    Rexanne.com
    Loving Everyone's Child Creates Magic


  7. #7
    ABW Ambassador flamingoworld's Avatar
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    I was looking at your site, and for me I would have a bigger issue with the banenrs leading to other sites, your link partners etc. that your commission rate.

  8. #8
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    You have Shareasale links on your site. With affiliate links on your merchant site, you will never allow your program to grow to its full potential.


    A lot of affiliates just won't promote your program as long as you have affiliate links on your site.

  9. #9
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    affiliiate programs that offer 50%, 60%, 75% or higher affilate conmmissions
    Wouldn't go near them.. if it sounds too good to be true, it usually is...

    Is your commission figure low for affiliates? Seems to me they would say that if you asked them

    Look at your competition, and position yourself nicely among them. I tend to be suspicious of extreme swings outside the average for a particular niche.

    (I don't know site url, but for what I thought it might be.. don't see SAS links, just a couple of link exchanges with relevant content.. using "_blank" which doesn't take you out of the site.. not a problem for me)

  10. #10
    Online Marketing Consultant
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    Jim, another huge issue you are facing is that those same "affiliates" are all promoting the strong use of very dirty practices and very nasty adware applications. You may want to rethink some of those forums where you were recruiting.

    After seeing the types of "affiliates" on one forum in particular and that forum promoting scumware, I will not set foot back there. The only good thing about being there for a very brief time was finding affiliate IDs who also clearly state they use adware and buy pop up ads on merchant and other affiliate sites etc...

    You are much better off working with the affiliates here than you are in the forum I am talking about. At least the ones here will send you real traffic with real sales.
    Adam Riemer Marketing, LLC. Online Marketing Blog and Affiliate Management Company
    Do you need help with your Marketing or Sales funneling, write me at adamr (at) adamriemer (dot) me

  11. #11
    ABW Ambassador newestuser's Avatar
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    Quote Originally Posted by flamingoworld
    I was looking at your site, and for me I would have a bigger issue with the banenrs leading to other sites, your link partners etc. that your commission rate.
    the only links i saw were fairly buried, so I wouldn't be too upset about that.
    i don't think there are too many of your competitors paying such high commissions. you don't need to compete with the software or whatever else that was, but just the custom food places like yours.

  12. #12
    Moderator MichaelColey's Avatar
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    Back on topic...

    There will be some affiliates who don't see the big picture, but most understand that different industries have different margins. Travel and electronics, for instance, usually have very low margins. Of course the average ticket is much higher in those industries, so that makes up for it. Some industries have low average orders and low commissions, which is a tough sell.

    The advice you've been given is right. Make sure you're as competitive as you can be within your industry, both on price and commission. And make sure you follow other affiliate friendly policies.
    Michael Coley
    Amazing-Bargains.com
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    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  13. #13
    Full Member Jim Guinn's Avatar
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    Thank you to everyone for all the feedback. I appreciate it.

    I think I have been spending too much time over at Digital Point, and need to spend more time here.

    As far as my competition, I have done my research, and I know my products have very good pricing compared to similar sites. I also know my commission offering, my 90 day cookie and my "no minimum" monthly payout is also very good compared to similar sites and food sites in general.

    I will also rethink some of my links.

    Thanks.
    Jim

  14. #14
    ABW Ambassador
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    Jim
    I have just become one of your affiliates and will be putting up some links tomorrow. Your commission is quite in line with your niche and I like your site and products. I'm also happy to see you participating here at ABW. It means a lot to me. Here's to your growing biz!

    Lily

  15. #15
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    I would happily take a 15% commission and a 90 day cookie from any merchant we partner with.

  16. #16
    Resident Genius and Staunch Capitalist Leader's Avatar
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    What the others said. Be competitive in your industry. Plus, the ebook-sellers have a whole different style than what would be expected to work for hardgoods. A megapage of bold red italics probably wouldn't do you much good, unless you're selling some kind of EASY EASY SOFTWARE that will GET YOU RICH BEYOND YOUR WILDEST IMAGINATION!!!

    As for the low profit margins, some affs will shy away from a low commission no matter what your reason (I myself have said "if a merchant can't afford more than 3-4%, then they can't afford to have their links on my page!").

    But 15% is not low! In fact, it's pretty good percentage-wise, for tangible items. Checking out your site (assuming it's the one in your profile), I would guess that the cost per item is the hold up. $2.95...15% of that is ~45 cents, which is not motivating. If your customers usually buy several packs, you should push that fact hard.

    Otherwise, there ARE a lot of things that could be run which pay a lot more than 45c per sale, even the ones with lower percentages. Yes, with high traffic and a high conversion ratio, those 45 centses add up--but when deciding which program to join, if it comes down to selling 45c commission items or $10 commission ones (example: a Cuisinart that could go on the same page that'd carry dip mix), you can bet which merchant's going to get the attention.

    So that's the problem I see. The percentage is fine. But you need to make sure prospective affiliates know that they're usually going to make more than 45c on a transaction (assuming that customers really do usually buy multiple packs).

  17. #17
    OPM and Moderator Chuck Hamrick's Avatar
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    Jim, have you tried online PR to announce your program? I don't see a new program announcement here either. Affiliate who are looking for programs are searching for their affiliate programs via keyword searches.

    Another opportunity is to allow PPC affiliates to bid on your trademark just asking them to bid below. They can greatly extend your brand all for an ROI set via your commissions.

    It also looks like you are runing an in-house program, hard to get the word out. Consider offering a SAS program which is low cost and you will get the benefit of the network promotions.

    There are good directories out there, just google "food affiliate programs" and list in the ones that have cagtegories that match your offerings.

  18. #18
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    Chuck had some very good ideas for you.

    That said, I found your program in about 10 minutes when I was searching on google. It really wasn't that hard. I also like dealing with indies. (That's why I was searching Google.)

    The "no minimum payout" is great.

    My one suggestion would actually be to join with Popshops, which is free! You do need to have a datafeed. But if you don't I'm sure they'll explain it to you. You can be an indie and do it as well. They are really nice people. The Popshops forum here is very active and encouraging. I think alot of people check out every merchant that signs up. (I know I do!)

  19. #19
    OPM and Moderator Chuck Hamrick's Avatar
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    Thanks Aunt Lilly, have one CJ program on PopShops and trying to get two Performics programs added too. I have several programs that only have a product or two and am looking for a way to get those listed as well.

  20. #20
    Newbie MNSandy's Avatar
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    You can't compare Clickbank type products and CJ/TD type products. Completely different worlds. The production costs are different, the business model is different.

    Make sure you get affiliates that promotes your competitors and make them a better deal to try you out as their secondary option. If they perform well, I'm sure you will be able to take the 1st spot as well

  21. #21
    Moderator MichaelColey's Avatar
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    Another thing you can do is focus on the various factors that help increase your conversion ratio. If I try out half a dozen merchants with similar commissions, I'll put a lot more effort into the one with the best conversions.

    Good commissions will get affiliates to try out your program, but good conversions are necessary to keep them. I've given up on many programs that had great commissions but just didn't convert.
    Last edited by MichaelColey; May 28th, 2008 at 09:30 AM. Reason: Added more
    Michael Coley
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  22. #22
    Full Member Jim Guinn's Avatar
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    Quote Originally Posted by Aunt Lily
    Jim
    I have just become one of your affiliates and will be putting up some links tomorrow. Your commission is quite in line with your niche and I like your site and products. I'm also happy to see you participating here at ABW. It means a lot to me. Here's to your growing biz!

    Lily
    Thanks a bunch Aunt Lily. Nice to have you aboard! Let me know how I can help.

    And, I think I have found a home here at ABW. In fact, I have only posted once over at that "other forum" since I got active here. I think that other forum's slime was begin to rub off on me and jade me a bit.

    I still have to work on those landing pages, but as I said before, I feel so "out of the loop" with the latest trends in landing pages. I'll get them up there, though.

    ________

    Leader,

    Thanks. I had not thought of that. You are right, the percentage is good, but the product base price is low. Truth be told, I do get some 1 item sales, but the average sale is 4-5 items and getting an order for 12-24 jars is not uncommon. I will adjust my affiliate intro page to reflect some of these stats.

    ________

    Chuck,

    I just recently used the AffiliateFirst.com service and had them submit my affiliate program to about 50 affiliate directories. I am starting to see some results there. I do plan to announce it on ABW, but probably some time next month. My advertising budget is very modest. I took a look at SAS. The set up fee they want is prohibitive at this time. Yes, it is difficult being a small in-house start up, but I'll keep accomplishing small steps.

    ________

    MNSandy,

    Yes, I know you can't compare digital against tangible product commissions, but as I said before, I think that other forum was jading me to this. All they seem to care about is the bottom line...what will make me the biggest commission....when half of them don't even know the basics of affiliate marketing...LOL...Most of them would not give my 15% the time of day.

    ________

    Michael. Thanks. yes, I am trying to do that. That is why I have been reading and learning a lot in this forum. I am also waiting for Geno's book to arrive. I ordered it two weeks ago, but have not received it yet. I think that will also be a big help to me.

    Thanks all!
    Jim
    Last edited by Jim Guinn; May 28th, 2008 at 09:44 AM. Reason: In order to have just 1 reply post rather than 4 or 5

  23. #23
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    I think you need bigger pictures of your products, this alone could increase your sales. Maybe its just me but they seem a bit small

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