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  1. #1
    Affiliate Manager
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    percentage or flat $$
    My product retails for $99.00 As an affiliate would you rather see a commision stated as a % or as a flat $? Or does it matter to you?

    What is going to catch your attention 20% or $20?

    In terms of the amount, there is only about a $.20 difference.

  2. #2
    .
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    January 18th, 2005
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    Percentage.

    Today you may offer only one product, and you may expect that consumers will buy just one. But you may add additional products (add-ons), and you may find that satisfied consumers want to buy more than one (one for me, one for Mom, one for my friends' wedding next month).

    If there is some sort of "recurring revenue" (for example, when my wife bought two little grills [one for her, one for her mom], the seller also signed her up to receive a new overpriced cookbook each month -- of course they didn't tell her this, and our credit-card company quickly reversed the charges -- but if you have an offer that legitimately provides for recurring transactions), then that might complicate things.

    A percentage is the absolute simplest way to go. Of course, a percentage might impact your ability to change pricing over time -- if your gross margin is 50% and you pay a 20% commission, then you can't reduce the product's price by 40% and still make a profit without changing your affiliate program (but a fixed-price bounty would be even worse).

    Now, for a single-product merchant, I'm not sure if a 20% commission is going to be adequate, but you'll find that out over time as affiliates test your offer and give you feedback about whether they view the return as acceptable.

  3. #3
    Half a Bubble Off Plumb RemodelingGuy's Avatar
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    June 1st, 2007
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    MW has it right.

    I have a roast downstairs in my antiquated crock pot and would love to have the veggie / side dish cooker on top.

    Would pay $99 for it.

    So, in my little mind, that makes it a viable product to promote on sites that are directed at the right market.

    If you do well with one product, you may add more.

    George Foreman wannabe! -

    Percentages are just easier to work with.

    Jimmy McDonald - Your Local Hard Working RemodelingGuy ( & SprinklerGuy - & GarageGuy )
    StartRemodeling.com .... MySprinklerGuy.com .... MyGarageGuy.com ....
    We're Bettering YOUR Life by Improving Where YOU Live It ...
    Do What You LOVE & LOVE What You Do! ....

  4. #4
    Affiliate Manager
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    MW - Thanks for the input. I had not thought about that angle.

    RemodelingGuy - You do your homework. I'm impressed.

  5. #5
    Full Member iolaire's Avatar
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    October 3rd, 2006
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    Quote Originally Posted by SlowCooker
    What is going to catch your attention 20% or $20?
    If I had a site where slow cookers made sense, I personally think a sliding percentage sale would catch my attention more. Maybe 10% base with 5% bonus for months were you refer say 30 sales per month, and 10% bonus (20% total) if you refer over 50 products. Or do it monetary based, so you can introduce new lower priced products and not have issued - 10% base, over $2,000 in monthly sales = 5% bonus or over $5,000 is double your commission.

    All though generally I do not sell a lot of any one product, I feel a sliding scale rewards the people who will really help you make your sales goals. Future more it rewards people who expend effort, marking money, or their existing user base to sell your product.

  6. #6
    Affiliate Manager
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    Sliding scale. Hmmmm that is an interesting idea.

    I just got the program started last week and there is so much I need to learn, a lot more than I realized. Right now it is a little overwhelming.

    Thanks for all the input.

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