Affiliate Commission Rates

[rb30]

I wondered if anyone had any experience with playing with setting affiliate commission rates.

I found a great interview with Tim from 2003 in the Marketing Experiments Journal (http://www.marketingexperiments.com/improving-website-conversion/affiliate-marketing-analysis.html) where he says aff. sales only account for 1% of turnover but planned to relaunch with a higher commission rates - I expect they account for a lot more than 1%, even that small %'age is better than 100% of nothing. In the book he suggests between 15-40% .

Alex Mandossian (Teleseminar guru) suggests exploding your product sales with a 90% commission fee for a product launch (http://www.alexmandossian.com/2007/11/21/%e2%80%9cpay-affiliates-90-commissions-for-fast-growth%e2%80%9d/) which makes sense using his system for selling the actual affiliate program but could this also apply to product sales too?

[Vagabond]

I wondered if anyone had any experience with playing with setting affiliate commission rates.

I found a great interview with Tim from 2003 in the Marketing Experiments Journal (http://www.marketingexperiments.com/improving-website-conversion/affiliate-marketing-analysis.html) where he says aff. sales only account for 1% of turnover but planned to relaunch with a higher commission rates - I expect they account for a lot more than 1%, even that small %'age is better than 100% of nothing. In the book he suggests between 15-40% .

Alex Mandossian (Teleseminar guru) suggests exploding your product sales with a 90% commission fee for a product launch (http://www.alexmandossian.com/2007/11/21/%e2%80%9cpay-affiliates-90-commissions-for-fast-growth%e2%80%9d/) which makes sense using his system for selling the actual affiliate program but could this also apply to product sales too?



Kinda messed up that he had a poor experience with myaffiliateprogram.com but then recommended them in his book? whats up with that?

[rb30]

Their system is good but he critisises their premium service, which is where you pay a fee and they are supposed to actively recruit quality affiliates for you.

[Vagabond]

can you please share any info you find thats more recent than those 2003 interviews. The affiliate marketing industry has changed SO much in the past 5 years, I'd love to get access to best practices, whats working and what isn't for when I get to the point where I need to design my own affiliate marketing program.

It's hard to find information on the advertiser/owner side of it, its drowned out by everyone looking for info on being publishers and doing the marketing..

[rb30]

the question I was asking was does anyone have practical experience of setting affiliate commission rates?

[webgal]

Either James Gray or Italian Job could answer that.

[webgal]

3) Give your affiliates the highest payout possible (normally it is 75% for Clickbank). Also, create up-sell products that your customer can add "to their shopping cart" once at checkout. That will increase your affiliates' profits...and yours.

Hope this helps.

ciao

Yes it does help. Really great post Danny. It really boils the process down and compartmentalizes what needs to be focused on.

Can you elaborate on the above? The up-sell part? I understand what up-sell is but I'm not understanding how you'd add products to a sales page. I would have thought you could only prepare them for future purchases with the email capture.

[rb30]

Thanks italian_job. This is good stuff, so much information condensed. I will have to print out and read several times.

Product development has largely been delayed due to agreeing terms with the copyright owner. Actual design to production will take less than a month. I agree with your philosophy about marketing.

My marketing will include:
PPC
Offline (Print ads, trade fairs, direct mail)
Affilliates (online & offline)

Frontsell, Upsell, Backsell. Every opportunity needs to be exploited at the same time its important not to become a workaholic!

[rb30]

Yes! Will look in to that and implement at the right time.

My agreement is settled though and production is in full swing, initial start up costs were relatively low but I think the leg work (time/research/negotiations) will pay off. The deeper the digging the more gold will be found - its niche and no one else has ventured this way because of knowledge and lack of technical ability. The partnering deal I have made with the production company should reduce my workload. Believe me I've burnt myself out in the past so all i'm after is my TMI. Any sales made beyond that are great but others can chase those and I will get my percentage for their efforts.

Am checking out your other posts for more nuggets of gold.

Thanks again.

[lookgreatmakemoney]

Hi Everyone,
I went to an internet seminar the other day and basically the presenter stated the following:
In order to make $3,000.00 a month on the internet, you needed the following:

1. 500 visitors a day to your website
2. pay ten cents per click on googleadwords and have a $50.00 a day budget
3. have a $30.00 info product to sell

This, at just a 1% conversion, would result in 5 sales a day or $150.00. $50.00 a day for advertising on googleadwords, leaves you $100.00 a day profit or $3,000 a month. Then he said, just keep repeating it with more websites till you are making as much as you need.

First, is this realistic?
Second, I do not have an ebook done yet so I wanted to go on to clickbank and promote one of their products with the above formula. Should I just pick the most popular clickbank product? or are those over saturated? Please advise, thanks, Lisa