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  1. #1
    Affiliate Manager
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    November 18th, 2010
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    How do I know how much commission to pay?
    I have a digital download product I am selling for 74.95. I am happy to pay my affiliates a very high commission, because I feel like, why not? They are sending me business, and I don't imagine it will take much effort to maintain relations with my affiliates, so why not pay them a lot so they will be happy?

    But I am a brand newbie so I really don't know. Could someone make any suggestions for how I can figure this out?

  2. #2
    Moderator MichaelColey's Avatar
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    January 18th, 2005
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    What do your competitors pay? You want to be at or near the top if possible.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
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  4. #3
    Certified Affiliate Manager sunshiner's Avatar
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    You also have to look at your profit margin by figuring all your expenses in and what you can afford to pay them and still make money. Keep in mind if you offer a coupon too that will cut into your profits.
    Cindy Ballard, VP of Operations, Greg Hoffman Consulting
    Follow Me on Twitter @cingroomer
    My blog, www.oldfartlife.com

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  6. #4
    Affiliate Manager
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    Quote Originally Posted by MichaelColey View Post
    What do your competitors pay? You want to be at or near the top if possible.
    I have checked my competition in the anger management field and their programs are quite ungenerous. They only pay if the person who purchases the program finishes the program. So someone can pay for the program but not complete it, and the affiliate does not get paid.

    I'll check around click bank for other self help programs and see what they are offering as a commission.

  7. #5
    Affiliate Manager
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    I'm not at the point where I can calculate profit margins or such figures. As I develop an cash flow and know my expenditures that will become more clear. For now I'll just have to go with some kind of industry standard and take it from there.

  8. #6
    ABW Ambassador Greg Rice's Avatar
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    January 18th, 2005
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    Quote Originally Posted by fifthhouse View Post
    I'm not at the point where I can calculate profit margins or such figures. As I develop an cash flow and know my expenditures that will become more clear. For now I'll just have to go with some kind of industry standard and take it from there.
    It's important to know what you can and cannot afford to pay. It's ok to increase your payout later if you figure the profit margin is there but never lower your commission, that's one quick way to damage your program.
    Greg Rice Affiliate Program Management
    www.gocmc.com info(AT)gocmc.com | 330-259-1223

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  10. #7
    Affiliate Manager
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    November 18th, 2010
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    Thanks for the advice Greg. Yeah I just read that a couple days ago to never lower the commission rate. That make is more crucial that I don't go too high in the beginning. I still need to look around more and see what similar merchants are offering...

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