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November 7th, 2006, 12:35 PM #1
Question on Commission Amount
- Join Date
- November 7th, 2006
I am looking at joiningg Share A Sale Affiliate program and I wanted to hear from affiliates just what they were looking for as far as commission. Our site sells a lot of closeout, refurbished items and the margins are not too high. So in fact, 3%-5% would be tops to give out. Is this something that affiliates would be interested in. Just not ure if the commission is to low or not. Any help would be great. Thank you
November 7th, 2006, 03:11 PM #2
3-5% can still be good for affiliates to want to join, if the potential payout per sale is fairly high. If the average sale is $400 for example, 5% would be a nice $20.00 commission and if it converts well then that may well be wonderful for affiliates. Also, looking at it from the PPC side of things, if it's a niche market for what you're selling without lot of competition then 3-5% could still be profitable for the PPC affiliate.
Think carefully about how much exposure you want your products to have on the Internet and how well they might sell in this medium, and how much we affiliates (especially the "super" affiliates that forums like ABW are regularly reading) can spread the word on search engines to help boost your sales. Then look at your price point and profit margins for your products, and see how much percentagewise you can spare to get the extra volume.
You may decide that, say, in the 5-10% range is feasible. It's true that 3% is pretty low but not unheard of in the affiliate marketing biz, and it's also true that the higher that rate is, the more attractive it may be for affiliates to join and promote. But you have to decide what you can actually afford. And keep in mind that this commission is a small price to pay for the fact that you can have someone else (many other people!) do much of your Internet advertising for you for only a fraction of what you earn for each sale.
Obviously, there's no easy answer to this question without doing some serious cost and profit analysis. If you're in a category that has competition who also use the affiliate model, take a look at how much they are paying out and see if you can entice affiliates with a slightly larger percentage than your competition. Again, if you can afford it. As with any business, getting a higher volume of sales is the big payoff. The 'net has proved that it can extend the reach of most niches if promoted well. And the affiliate model can really do wonders.
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