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  1. #1
    Newbie
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    New Merchant needs help making affiliate decision....
    My question is, and I am strongly considering share a sale, since my online training site has a flat monthly recurring fee, do I pay one time to affilliates or can/should I pay a monthly commission?

    I own an online safety training LMS. It is a very cool easy-to-use, completely automated site that allows companies to safety train once a month and have a record of it.

    My site is unique as companies can train their entire company for only $99 a month with no contracts. I have set it up this way on purpose. The economy is so very bad and safety training needs to be affordable.

    I want to set this up so affilliates could make 25%-35% of the monthly fee for as long as the company stays signed up.

    How would you set it up?
    Is ShareASale a good match for this type of product?

    Thanks in advance for everyone's help.
    Last edited by UTrainHere; January 28th, 2010 at 12:58 AM. Reason: typos, wrong title.

  2. #2
    Comfortably Numb John Powell's Avatar
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    Welcome to ABW. Shareasale has it's own forum here and that would be a better place for this thread. Maybe you can request a mod to move it.


  3. #3
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    This is really an issue that must be considered before choosing an affiliate technology solution -- you need to figure out the nuts-and-bolts of how this is handled BEFORE choosing a solution. So I don't think that this question should be moved (though a separate "how-to" thread in the SAS forum would be nice).

    Recurring advertising payouts will require some programming resources, since each transaction must be uploaded from your own transaction system. This might mean loss of "real-time tracking" at the affiliate-network side, depending on your implementation. The alternative would be to either use an in-house affiliate solution (as many web hosting folks do) or to use a solution that handles transactions plus affiliates (digital river, clickbank).

  4. #4
    ABW Ambassador Greg Rice's Avatar
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    ShareASale has the ability to track recurring commissions but you should talk with them first. It is possible but it will take some work on your end to make it happen.

    Recurring commissions can be good for affiliates if you have a track record and can show them why this is better than a one time commission. Affiliates may prefer a one time commission if it's A) Substantially higher than recurring commissions and/or B) No track record or history to show affiliates why recurring is better. For example a one time commission of $99 is better than a recurring commission of $35 if the recurring only pays for 1 or 2 months (your customer quits after 1 or 2 months). Bottom line-what will make affiliates the most money per sale?
    Greg Rice Affiliate Program Management
    www.gocmc.com info(AT)gocmc.com | 330-259-1223

    Join us! - MiNeeds.com | DiscountCandleShop/CheeseSupply | Feng Shui Plaza

  5. #5
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    Thanks Greg, I will definitely talk with them first.

    Our track record is that customers stay 2 years+. Many customers have been with us for the 4 years we have been in business.

    At a $99 price point, companies will save HUGE dollars training this way. 60No one offers training at this price!

    A 30% commission (roughly $30) should make an affiliate an average of $600 to $1,000 over the life of the customer, or more. Versus a one time of $99, the monthly would be much better. For successful affiliates, it should be a good revenue generator.


    Thanks

  6. #6
    ABW Ambassador Greg Rice's Avatar
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    With that track record, I would think affiliates would love the recurring commissions.
    Greg Rice Affiliate Program Management
    www.gocmc.com info(AT)gocmc.com | 330-259-1223

    Join us! - MiNeeds.com | DiscountCandleShop/CheeseSupply | Feng Shui Plaza

  7. #7
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    FYI, I've also written (in another discussion thread) about the "counter-intuitive outcome" of offering "recurring" versus "one-time" payouts in affiliate programs. Specifically, one merchant offered both options (affiliates could opt to receive a one-time payment or a recurring payment), and when they analyzed their performance data, they found that "on average," affiliates chose the less profitable option "most of the time." That is:
    • publishers who were referring transient customers (who didn't stay very long) more often elected the "recurring payment" option and thus received less than if they'd accepted one-time payment; and
    • publishers who referred persistent customers usually elected the "one-time-payment" option, and thus received less than if they'd accepted recurring payments.


    I suspect this happened because publishers who are more risk-averse are likely to use "quality" strategies, while publishers who are greedy are likely to push the envelope.

  8. #8
    OPM and Moderator Chuck Hamrick's Avatar
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    We offer a Life Time Value commission model for hosting since we are on a 35 day cookie. Not sure how you handle the reoccurring other than to manually credit affiliates after the rebill is paid.

  9. #9
    http and a telephoto
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    Shareasale has a way for a merchant to upload via API for recurring payments.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  10. #10
    Affiliate Manager
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    These are great questions. Thanks. I've got a similar situation with an annual membership and a monthly membership and not sure if they would both be attractive to an affiliate or if I should narrow it down to one.

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