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January 3rd, 2006, 02:23 PM #1Determining optimal commission
I sell a personal budgeting software solution that requires some tech support on my part at times. I've recently launched my affiliate program with Linkconnector and am having a hard time determining what an optimal commission would be.
My product retails for 19.95 and I pay the affiliate $5 (25%). I would pay more but I have a hard time with that because of the customer service side that I deal with. How do I determine the optimal commission?
January 3rd, 2006, 03:53 PM #2My product retails for 19.95 and I pay the affiliate $5 (25%).
I think you have a good product there, and I believe that with the right targeted visitors, there could be a good niche program to make good money for you and your affiliates.
I might be wrong but, after looking at your product I think it's a good movable item for those that need it.
I just browse your site briefly, and I noticed that some people will not going to like the Left to Right scrolling.
I don't know if you made your tables that wide like that on purpose, or by error, but the "table border=0 width=950" looks too wide on my screen.
But anyway, good luck with your new affiliate program, and I will keep you in mind in case I decide to start a personal budgeting software niche down the road.
January 3rd, 2006, 03:56 PM #3
Thanks for your reply Sal. Also, thanks for the note on the width. I do need to address that soon.
January 3rd, 2006, 04:52 PM #4
The challenge is that as you raise commission the # affiliate sales may go up but your margins drop. If there is a large component of service (tech. support) then a small raise in commission could make a big difference in the % change in total profit .vs. if you had a lower cost product.
If you go too high and need to drop the commission you will upset affiliates, as you can never lower your commission easily - only raise it
How about trying a limited time promotion where affiliates get a higher % commission - see if it pays off? At least then you can revert to where you were with reduced dropouts.
Anyway if you just started I wouldn't touch the commission so soon. Focus on other things to motivate the affiliates. Also focus on reducing support costs - self service knowledge base, improving product quality, other support features.
Peter[URL=http://www.typoassassin.com/?utm_source=abestweb&utm_medium=forum&utm_content=p&utm_campaign=sig]Are these affiliates stealing from you?[/URL]
January 3rd, 2006, 05:11 PM #5
That's a good idea Peter. You're right about improving the self-service aspect of it. Perhaps I could find a way to add a bit more value to my product and sell an option that's priced higher.
January 20th, 2006, 01:09 PM #6
I've been working on the self-service aspect of the website and I believe I've improved it quite a bit. Therefore, I increased the affiliate payout to 35% instead of 25% - we'll see if that pulls in anyone else though!
Also Mr. Sal, b/c of your comment I changed the site layout a bit. Check it out and see if you don't like it a bit more! I certainly has a nicer eye appeal.
January 20th, 2006, 04:23 PM #7
It sure looks 100% better than the last time I saw it, and now the visitors don't have to be scrolling left and right anymore.
March 13th, 2006, 06:55 PM #8
Originally Posted by ynab
- Join Date
- January 19th, 2006
- Austin, TX
We've found throughout the hosting industry that a flash/video tutorial works incredibly well for covering the basic tasks/tools related to your site, software, control panel, whatever.
You can check out robodemo.com (macromedia company) and you can create your own flash tutorials to help reduce the support load coming in. It is spendy, but you may be able to find other software out there like it, or contact a company that makes custom tutorials; they may be cheaper.
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