« When You Are Building Your Affiliate Sales Force, You Should Keep In Mind The “80/20″ Rule - “20% Of Your Affiliates Will Make 80% Of Your Affiliate Marketing Profits.” | Home | To Really Make Large Profits From Online Marketing, You Need To Have The Ability To Sell More Products To More Of Your Target Market. The Problem Is That You Are Only One Person, And Despite Your Best Efforts, Can Only Reach So Much Of The Target Market At One Time. This Is A Major Reason Why You Need Affiliates To Promote Your Products - That Way, Your Products Can Be Promoted To Many Sections Of The Target Market From Many Different Places Online All At One Time. »
Successfully Recruiting Top Affiliates Into Your Affiliate Program Is A Major Key To Increasing Your Profits, But Only If You Plan Ahead And Figure Out How Much Profit You Should Give Them For Promoting Your Product.
By Admin | February 4, 2009
After all, the key for affiliates to make money is to promote your product and make a specific percentage from each sale that they make. Without that incentive, affiliates will not see any need to promote your product.
Nowadays, 50% is the absolute minimum commission you can offer for each sale that an affiliate makes, but even that is almost commonplace nowadays, and likely will result in affiliates just looking past your offer and moving onto the next proposal.
Therefore, you need to raise that percentage to at least 60%, if not more, to attract them to your affiliate program. You need to realize, however, that that percentage will come away from your profits. After all, instead of receiving the full $1.00 of every $1.00 from your product, you will now only receive $0.40 for every dollar of your product price. However, as mentioned above, this is necessary if you want affiliates to actively promote your product offers.
You’ll need to consider whether the price you plan to sell your product for will be enough to provide you with enough profit to cover your expenses and give you a reasonable profit margin, while also paying your affiliates. If you price the product too low, you may not receive enough profit to make it profitable for yourself, and that is one of the main reasons you’re in business - to make money from your ventures. However, lowering your affiliate commissions will likely cause your affiliates to move onto other affiliate programs that offer higher commission percentages.
Therefore, you need to take into account your profit margin and your affiliates’ commissions when determining the price of your product in order for your affiliate program to add income to your business.
For more information on what you need to consider when adding an affiliate program to your business model, check out “Managing Your Affiliates.”
Tags: model check,
http://managingyouraffiliates.com
Topics: Managing Your Affiliates |
Comments
You must be logged in to post a comment.