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Wednesday, 7 September 2011

Affiliate Marketing Point Twenty-three

Affiliate Marketing Point 23: Avoid Low Commissions

Money is what it is all about. Why else would you promote someone else’s product? If it wasn’t for the money, or the potential to earn the money, you wouldn’t do it, and neither would most other people.

So why would you go with a program that offers low commissions on already low-priced products? Remember that you will put forth a lot of time and energy, and possibly even your own money, to promote this program. If the commission is low, such as 20%, of a product that is already low priced, such as $50, this probably isn’t worth your time, unless you consider $10 worth the time and effort you are about to put forth.

Ideally, you should look for a payout of 50% to 75% for low priced products. Some affiliate program owners will offer an even bigger commission because they will make their money on a backend product.

High ticket items should have a commission payout between 20% and 50%. As above, for a $50 product at 20%, you would only make ten bucks. But for a product that costs $1000, you would make $200 per sale, and this is worth your time, especially if you can make four or five sales per week.

Again, figure out how much you need to earn each month. Get a total figure, then determine what products you can realistically afford to market, and how many sales will be required to make your needed income. You really just cannot afford to market some products simply because the commissions won’t pay you enough.

If you find a product that you really believe in, and you feel it would be beneficial to your customers, contact the product owner. Tell him what you can do, and ask him if he or she is open to a higher commission rate agreement with you. Better yet, join the low commission affiliate program and show them what you can do for a couple of months. Just don’t do this for more than a couple of months without getting your commission percentage raised!

Also look to see if higher commissions are offered for a higher number of sales, and see what the payout is for sales made by affiliates who sign up under you. Take all of this into account when making your choices, and also consider whether or not there will be residual income.

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