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  1. #1
    Newbie
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    April 18th, 2015
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    11
    Finding the right commission for affiliates
    Hi, I'm completely new to affiliate marketing and was looking for some input! My company just launched an affiliate program, and I was wondering if anyone had input on a commission rate that will be looked at as respectable by potential affiliates. Our product sells for a $199.99 one time fee, and we offer 25% commission per sale to affiliates. Too high? Too low? Would a tier system be more effective. Maybe have sales levels that reset each month. If they get past one level it goes up to 30%, etc. Any input would be appreciated! Also, If this question has already been addressed elsewhere I apologize, feel free to link me to it! Thanks!

  2. #2
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
    Join Date
    January 22nd, 2007
    Location
    West Covina, CA
    Posts
    8,443
    Yep, its been asked frequently, and the advice is always the same: Rates vary by niche, so look at your competitors and see what they offer, then you can decide if you should try and do better to attract top affiliates in that niche.
    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]

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  4. #3
    Newbie
    Join Date
    April 18th, 2015
    Posts
    11
    Alright, thanks!

  5. #4
    Affiliate Manager AffiliateWarrior's Avatar
    Join Date
    January 18th, 2005
    Location
    Florida USA
    Posts
    1,305
    Depends completely on the marketplace - assess the competition and see if your percentage holds up. Keep in mind that payout itself isn't everything. You also need to factor in considerations like how well your site converts, how many refunds per month you process, etc. to come up with the most competitive offer.
    Wade Tonkin - Affiliate Manager - Fanatics
    NFLShop.com|Shop.NHL.com|NBAStore.com|Store.NASCAR.com
    Email wtonkin // at // Fanatics.com

  6. #5
    OPM and Moderator Chuck Hamrick's Avatar
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    April 5th, 2005
    Location
    Park City Utah
    Posts
    16,646
    Software can have commissions of 50% as there is no physical goods shipped. Clothing can be 4%, shoes also. Its all relative.

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