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Optimum Commission

how much should we offer?

         

JonnyWales

9:22 am on Dec 2, 2002 (gmt 0)

10+ Year Member



Our software programs sell for up to $700 so if we pay affiliates 20% they'll get $140 per sale. Do potential affiliates focus on the percentage offered or the amount they will receive per sale. Cheaper products selling for $50 may need to offer affiliates 20% but could we get away with offering 10% and still attract quality affiliates?

I've read in certain threads that too high a commission can be looked at as unsustainable, whereas offering too low a figure isn't going to attract the number of quality affiliates we're aiming for.

zeus

12:50 pm on Dec 2, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



When I look for new affiliate programs, I first look for lead commission if there are noon then a min.10% per sale I dont look for what amount it will end up with.

zeus

Mike_Mackin

12:55 pm on Dec 2, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I'm told that the profit in fully supported software is about 70%.

You might offer 35% to the first 25 affiliates.
Try a monthly minimum check of $1000 to reduce the # of affiliates to just the "true crackheads" ;)

Dante_Maure

1:31 pm on Dec 2, 2002 (gmt 0)

10+ Year Member



With high ticket information products it's not uncommon for commissions to go as high as 50%

As for being perceived as "unsustainable", any serious affiliate marketer understands that digital information products have very little overhead. The only time I've heard this idea suggested by an affiliate was with a program offering an 80% payout.

The more your affiliates make, the harder they'll work your program and that is as much about how your site converts, as it is commission structure.

I would suggest setting it as high as possible while still leaving leeway for two things:

1) Bonuses for top performers and special contests

2) Extra commissions to be paid to the "super affiliates" that often expect (and deserve) special treatment for the enormous traffic they can provide

Travoli

5:35 pm on Dec 2, 2002 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Make it look generous. Most crackheads I know spend all of 10 seconds deciding if they can make money on a program or not.