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  1. #1
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    May 20th, 2015
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    Opinions on the better Affiliate Offer?
    Hello,

    I hope this the right place to post this.

    Our company is starting an affiliate program and we are deciding between two possible offers. We obviously want to go with the offer that affiliates find most appealing. Our product has a monthly fee that is typically $45.00.

    1. The first option would pay $50.00 after the customer signs up (and makes a payment), and another $50 three months later.

    2. The second option would pay 20% for the lifetime of the customer - so it would be $9.00 every month.

    There are significant volume incentives as well, but those are the same for both options, so I won't get into that here.

    Any and all thoughts on the two options would be very much appreciated.

    I'm not sure as to protocol here, so I have not included any information about our company, or even a signature.

    Many thanks.

    Steven Bruce

  2. #2
    The Seal of Aproval rematt's Avatar
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    November 19th, 2006
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    Without knowing a little more about your product, conversion rates and customer retention rates it's hard to give a concrete answer. However, keeping in mind that it's an affiliate's job to drive new business and your job to retain the customer once they're acquired, it would probably make more sense to pay the larger commission up front because essentially the affiliates job is done.

    -rematt
    "I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant." - Richard Nixon

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  4. #3
    Affiliate Manager AffiliateWarrior's Avatar
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    January 18th, 2005
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    You'd need to know the average customer lifespan before that could be answered effectively. The first is pretty aggressive, but if you keep a user for for say 18 + months on average, the second would be awesome with some passive recurring income for the affiliate.
    Wade Tonkin - Affiliate Manager - Fanatics
    NFLShop.com|Shop.NHL.com|NBAStore.com|Store.NASCAR.com
    Email wtonkin // at // Fanatics.com

  5. #4
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    May 20th, 2015
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    Thank you both for your thoughts.

    rematt - Understood that conversion and retention rates are important. Our product is fairly new to the market, so we are working with somewhat limited data as far as retention rates. That said, our product is designed to fill an important need, and not easily replaced once used. As for the two offers, we are trying as best we can to determine which will be most appealing and motivating to potential affiliates.

    AffiliateWarrior - Agreed all around. We believe our retention rate will be high, and therefore the second option will be the most lucrative for affiliates. We do recognize though, that we don't yet have the historical data to prove this, so some might be more comfortable taking the larger payout up front. We're trying to talk to as many affiliates as we can to see if one of the two options is clearly preferred.

  6. #5
    ABW Ambassador Vrindavan's Avatar
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    February 25th, 2003
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    I prefer option One here.
    i may change it after I check the product or service.

  7. #6
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    May 20th, 2015
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    Vrindavan - Thank you for your thoughts.


    Steven Bruce

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