Do The Best Affiliate Programs Offer The Highest Commissions?
Saturday, September 27th, 2008Good blog post by Alice Seba. She reiterates a point that just doesn’t seem to be emphasized enough: that the best affiliate programs are NOT necessarily those that pay the highest commissions.
This should be obvious, shouldn’t it? I mean I could give you a rock to sell and offer you a 90 percent commission on it… but does that mean you’ll be raking in the big bucks anytime soon?
Ms Seba recommends looking past an attractive commission rate to consider such factors as the:
Dollar amount per sale - how much money will you actually make on the sale? For example, 10 percent of a $1,000 product will generate more cash ($100) than 50 percent of a $50 product ($25).
Conversion rate - is the product a hot seller? A product that consistently sells for $50 and offers a 10 percent commission may offer better *real* returns than an equivalently priced product offering a 40 percent commission. Simply because the first product actually sells, while the second does not.
One time or recurring commission - if you are promoting a membership or subscription program, will you get a commission only on the initial sale or on the recurring membership or subscription dues? Obviously the latter is preferable.
