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MenuI am starting an affiliate program but I am not sure what percentage of affiliate sharing is profitable?
I am planning to start/join affiliate program but not sure how should i go about. I am not sure how much percentage of affiliate sharing is profitable?
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The average affiliate program will pay commissions in the 10-30% of the sale range depending on your margins. Affiliates are concerned with the commissions, but are also concerned with how well your website will convert the traffic that affiliates send to it. If you have a strong conversion rate and a good commission rate, that is usually a good formula for a well-performing affiliate channel.
It really is all about your cost and margins; How much margin do you have on your products and services to account for a commission and how will that cost structure play into your marketing budget month to month.
Unfortunately, the only one who can answer that is you. I always recommend to start out at a lower, conservative commission structure to test. If things work out, you can always increase the commission rate to make it more competitive and enticing for affiliates.
I run through this scenario as I see it a lot with clients in my post here: http://upfoundry.com/guides/2016/02/how-to-set-your-commission-ratestructure-for-affiliates/
If you find it helpful and have more questions - don't hesitate to request a call.
Thanks!
Related Questions
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A StartUp is looking into setting up an affiliate marketing platform, I believe the setup is different to the industry standard. Any insights please?
So this model has been attempted before in various formats. As a direct comparison, 3-4 years back there was a company called WidgetBox. They were a startup. Successful in getting funding. Raised at least $8 million. Their changed up their model a few times but their most successful one was nearly identical to what you described. They went directly to various advertisers on a CPA basis and then guaranteed publishers a set CPM based on the agreed CPA with the merchants. Got as high as doing 500 million impressions a month. But they didn't appropriately account for fraud, had to back out on payouts, ended up nearly folding. They were able to pivot and be absorbed into Flite. A less direct comparison of your scenario is very common. Many affiliates these days operate what is considered a sub-network (against the rules of most larger affiliate networks) or a super-affiliate program. Examples are the dozens of loyalty affiliates out there like Upromise who also have their own affiliates (as well as members tracked on sub-ids) underneath them. Being the advertiser's "sole" affiliate is partially where I don't see the model you describe work. Unless your advertisers are completely unfamiliar with the digital space they are unlikely to only work with one company as their sole affiliates. Advertisers like to scale. It's why they work with networks. What ever you decide, Post Affiliate Pro does not have a robust enough of a platform for you to launch with. Beyond that the software's ability to help detect fraud is suspect. HasOffers (know called Tune) is a way better choice. Also recommend looking at Performance Horizon Group. Either way, highly recommend rethinking the "exclusivity" or "sole" component of your model and asking yourself why an advertiser would just go with you?AD
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Can I use affiliate marketing to earn more revenue instead of just showing AdSense ads?
There are tons of gaming offers on clickbank. Big market there for that.JS
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What are the best ways to do a cold approach to ask a store to carry your product or do business with you?
Mitigate risk. You're asking a store manager to dedicate space that costs money (and must generate revenue) to an experimental (unproven) product. I've seen some cottage industry food sellers here in Detroit work out deals to set up and sell their products at local stores. They get a day or two to show the stores what they can do. If customers respond and buy a lot of the product, it opens the door for more shelf space. If not, the store lost nothing in giving it a try. How do you set this up? Free stuff. Give the decision-maker free samples of your product. If he or she likes it, you're on to the next step. Enjoy making your good luck for yourself! I'm happy to discuss further by phone.BI
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Can you really make a full time income from Adsense or affiliate marketing?
Yes if you have a site that has traffic these can be great streams of revenue. If you google my name and check or Adsense check you will see me holding a check and what can be possible :)JS
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How do we get influencers to work on a commission basis? We ran out of $ on PPC campaigns. I need an influencer expert.
Some of those same influencers who turned you down might have written about your service if you hadn't offered to pay them. You should have instead sent them a bag of dicks. If they're a celebrity, you can get their agent's address from http://contactanycelebrity.com/ (it sounds fake, but it's actually totally legit, agents actually send them info). If they don't have an agent, try to look for a 'fan mail' address that they might have posted on a video or something. If you can't get any relevant address, then look up their friends on social media instead, and offer to pay them $xxx cash to send a back of dicks to their friend, and a cut of whatever orders end up being generated by that (if the influencer ends up writing about it). There are more techniques you can use to get influencers to post for free about it. Send me a message if you want to discuss it more, or just to say thanks if any of these ideas work (I'd actually like to know). all the best, LeeLV
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