View Poll Results: Do you prefer a % or $$ ?

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  • %

    12 52.17%
  • $$

    4 17.39%
  • Doesn't matter. It'll all about conversion.

    7 30.43%
Results 1 to 14 of 14
  1. #1
    AM Navigator Geno Prussakov's Avatar
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    Question What is Your Preferred Commission Structure?
    When you decide on promoting a program, do you prefer a % off of each sale or a lump amount (e.g.: 15% or 80 USD)? The question specifically refers to service-related affiliate programs.

    Feel free not to only vote, but to also post your comments in this thread.

    Thanks,

    Geno
    Last edited by Geno Prussakov; June 20th, 2006 at 05:13 PM.

  2. #2
    Moderator MichaelColey's Avatar
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    From my experience, people are bad at math and prefer a dollar off discount rather than a percent off discount. There are exceptions, but dollar off coupons typically work better.
    Michael Coley
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  3. #3
    AM Navigator Geno Prussakov's Avatar
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    Michael, the question is about the preferred commission structure. Just changed the subject.

    G.

  4. #4
    AM Navigator Geno Prussakov's Avatar
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    Thank you for your votes. Looking forward to more...

  5. #5
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    Geno, if it's a service program, is there only one set fee or set levels of service with fixed prices, or would the fee be variable depending on what's ordered?

  6. #6
    AM Navigator Geno Prussakov's Avatar
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    WW, there will be set levels of service with fixed prices (ranging from 9 bucks to several hundreds). That is why I am thinking of the %...

    G.

  7. #7
    Member IronChef253's Avatar
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    I have been wanting to ask this question myself! I kind of figured that affiliates who sell less would appreciate cash bonuses which affiliates who sell more would like commissions. Just my theory...

  8. #8
    Troll Killer and best Snooper!
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    I want 25% minimum. You hand-deliver the check weekly, cook me dinner, walk the dogs and then let me beat you at gin rummy.

    How's that sound?

  9. #9
    Affiliate Manager Allen Nance's Avatar
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    Quote Originally Posted by MichaelColey
    From my experience, people are bad at math and prefer a dollar off discount rather than a percent off discount. There are exceptions, but dollar off coupons typically work better.
    I go another angle, I have dollar on coupons that up the price of the merchandise leaving more to be commissioned for me. Has worked well. Most coupon people dont read the fine print. As long as there is a dollar amount in the coupon box.

    Actually, for me it's the conversion. Whether clean of parasites or not. If they convert and the comission is lower I will stick with it.

    As for the lump sum, I can imagine that if that sum is a one time comission then the value of the customer has to be worked into that amount. Currently not promoting any merchant that does it this way.

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  10. #10
    AM Navigator Geno Prussakov's Avatar
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    Good ole 45 days old thread.

    I like Rhea's reply best:

    Quote Originally Posted by Rhea
    I want 25% minimum. You hand-deliver the check weekly, cook me dinner, walk the dogs and then let me beat you at gin rummy.

    How's that sound?
    Rhea, not sure about the dinner, the hand delivery of the weekly check, the dogs and the rest, but two of my programs already fit your commission desires (one offering 25%, and another one - 50% with a $25 min payment), and yet another one - with the 25% minimum (just as you want it!) - is coming to stage just 2 days!

    Geno

  11. #11
    ABW Ambassador Paul_Ward's Avatar
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    Any progs I've had where they pay a $$ amount have worked out pretty paltry when you work it out as a % - I'll go for % every time. Conversion goes without saying, it won't be affected by the structure the affiliate gets as the customer won't know.

  12. #12
    ABW Ambassador Ron Bechdolt's Avatar
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    I reacently had a $2500 sale at a merchant and only got a couple of dollars as that is all they pay (set fee per sale). Had I had that sale at another merchant with a 10%commission rate I could have easily gotten $250 commission.
    Ron Bechdolt | Affiliate Program Management Consultant
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  13. #13
    Affiliate Manager Alan Hamilton's Avatar
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    Sounds like Rhea wants the special "Concierge" Affiliate package. Prepare the standard "Rich & Famous" contract!!
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  14. #14
    AM Navigator Geno Prussakov's Avatar
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    Thumbs up % + conversion rule
    Quote Originally Posted by Paul Ward
    I'll go for % every time.
    The poll results seem to support the tendency, and it's good. It helped me personally convince a merchant to go from a "$7 per sale" structure to a "25% per sale", which in the long run should be much better for all affiliates and for the program's conversion too. Ron's post totally supports it:

    Quote Originally Posted by 7-days
    I recently had a $2500 sale at a merchant and only got a couple of dollars as that is all they pay (set fee per sale). Had I had that sale at another merchant with a 10% commission rate I could have easily gotten $250 commission.
    Conclusion: % + conversion is what seems to be favored by most affiliates, and justly so.

    Thank you again for the great feedback, everyone!

    Geno

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