Money from Merchants

What chunk are affiliates taking?

[Filipe]

So I read an archived post about affiliate services like CJ taking a huge (I read something about 30%) commission from merchants on top of whatever you're requesting.

On the merchant end of things, what kind of money are you giving up per sale TOTAL? If I were to approach a merchant directly, would I be able to get commissions over 40%? How much of a particular product is profit?

[percentages]

>If I were to approach a merchant directly, would I be able to get commissions over 40%?

A lot depends upon the merchant.

I can tell you this....One of my merchants recently ditched CJ and went in-house. As a consequence we have negotiated a 25% increase in affiliate payments.....I figure they can run in-house at less than 5% of the CJ costs and were therefore content to give me the other 25%.

I also have another merchant who runs both CJ and in-house programs. The basic terms offered via in-house are 25% better than the terms offered via CJ.

Don't get me wrong...CJ and other networks have value for merchants...but if you can negotiate directly typically everyone ends up better off (at least with larger & reputable merchants).

[seindal]

There are definitely other reasons for the changes, but art.com paid 20% in-house, then went to LinkShare and paid 10%, then went in-house again and paid 25%-30%.

[Catalyst]

Filipe,

The % of commish depends on the product and margin. Every market is different. I have a new program coming out Jan 1 that will be paying 75% commission through a unique structure I developed. With many of my Indies we have been able to set up much higer commission due to not having to pay network fees.

You can't just look at % though. Need to look at how many you can sell, conversion rates and retail cost of the item.
For instance 75% of a $9 item that has high perceived value and converts super easy, means as much money in your pocket as a $100 product that pays 7.5%. So you need to look at the price point and how easy the product is to sell.

FYI CJ only takes 30% of the commish paid to affiliates, not 30% of the total sale. So on a 100 sale that pays 10% commission CJ only gets $3.

Linda

[pardo]

Anyone familiar with the finance business? Mortgages and loans, I see lead commissions in the UK from £ 1 - £3 and sales commissions from £65 - £ 100.

I know a friend being a financial planner and might work out a deal with him directly. But what can I ask...?

[tdnetworks]

It all depends on how much you are selling the product/service for and how much you are selling. You will see higher percentages from cheap products or if the sales volume is high. You will see a lower percantage rate if the item cost a lot and they aren't selling a lot.

Our company is a dating website. We are able to give out about 35% to affiliates on a $7.99 sale which I belive is good. It just really depends on the company.

[hobbnet]

Anyone familiar with the finance business? Mortgages and loans, I see lead commissions in the UK from £ 1 - £3 and sales commissions from £65 - £ 100.

In the US you can get anywhere from $3 - $20+ per lead.