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  1. #1
    ABW Ambassador superCool's Avatar
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    April 23rd, 2008
    Commission Percentages
    interesting coincidence...

    superCool had 2 sales for the same merchant on the same day. one commission was $7.50 and the other was $22. when superCool looked at the details he noticed that both sales were for the same exact amount - $149. one of the products had a 5% commission and the other had 15%. wow – what a difference. makes superCool think about which items he should promote hardest. never really thought much about the varying commissions within a single merchant, but it can make a big difference.

    do you think the commission difference is due to the merchant markup for the item or because it is easier to sell? (or some other reason)

  2. #2
    Influencer Marketing GravityFed's Avatar
    Join Date
    January 18th, 2005
    Ithaca & Park City
    We offer "Item Based Commission" functionality for merchants b/c often times there are higher margins on certain products, so some merchants are willing to pay out more for those products.

    I always try and remind merchants, though... that measuring what they earn or don't earn on any one particular sale isn't that important. What's important is that the Affiliate likely just sent them a new, long term customer (if the merchant does a good job of handling the order and fulfills efficiently, etc.). And even if they don't make a thing on that one sale with commission payouts, that's a small price to pay for a new customer.

    I always say... Affiliates don't get the credit they deserve for being new customer acquisition tools.

  3. #3
    Moderator MichaelColey's Avatar
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    January 18th, 2005
    Mansfield, TX
    Usually commissions are proportional to the margin that merchants have in their products. Many merchants have a similar margin for all of their products, so they pay a fixed commission rate. Some merchants who have widely varying margins will pay lower commissions for their low-margin products. Other merchants will still pay a fixed commission rate and just make it up on the mix, knowing that they'll have some low-margin items and some high-margin items.
    Michael Coley
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  4. #4
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
    Join Date
    January 22nd, 2007
    West Covina, CA
    Look at giants like Walmart, Target, and Overtock, that pay as low as 1% (or in Walmart's case, ZERO) for some products, and as high as 7% and 11% for others.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  5. #5
    Affiliate Manager BlogBonnieBlog's Avatar
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    July 28th, 2009
    Been a while since I looked at amazon's pay structure but don't some of their payouts vary not only on the product type but even depending on whether the person "shops around" during the session or if they come directly to the page and buy right then?

    I know a lot of electronics pay lower commissions because there is not much of a markup. Definitely something to pay attention to.

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