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Why affiliate commissions are HIGH

Discussion in 'General Affiliate Marketing Forum' started by its_me_shaners, Mar 18, 2006.

  1. its_me_shaners

    its_me_shaners New Member

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    I?m in the process of writing an e-book. And as a result have been doing some research into what commissions to offer my affiliates after the e-book is ready for launch.

    Here?s what I?ve discovered.
    Recently affiliate commissions have been mislabeled as JVs and then they promptly skyrocketed to 50 and 75%

    Some e-book and net products authors and producers have spent years developing their products. Have spent months writing their book and polishing it. Why should they give an affiliate 50% of the benefits of their labour?

    On top of that, there are freebie seekers that have no intentions of promoting your book and just want to get the productat a discount, by buying with their affiliate link.

    I?ve read 80% of your affiliates sell less than 20% of your books ? and some people say 97% of your affiliates sell less than 3%! So most are not really working for you at all are they?

    If you were to do some testing and dropped the ?earn income? affiliate sign-up link from your site ? would your profits skyrocket?.

    So this brings me to the notion of cross promoting products. Should I look at cross promoting my product when it s all done? IS this the nature of JV's. You promote my product to your list and I'll promote yours to my list?

    Should I have a sales page with an earn money affiliate link page? Or should I leave it off? What would be the result? Would my sales drop, would my profit as a result drop or go up?.

    I have read that if I dropped the affiliate sign up link my profits would DOUBLE and sales would be increased.

    It strikes me that many people that purchase any book or product online were freebie seekers ? wanting to cut themselves a discount by using their affiliate link to get the product.

    I wouldn?t call them dishonest. I know that it is human nature. To do this.

    In my offline business (I?m a mechanical contractor) I get products for resale at a 30-70% discount) and I do purchase with my account for personal use.

    So should I only offer my customers my affiliate link in an email following their purchase?. I guess the point is I don?t want anyone saying, ?I recommend this book,? without having used my product! I?m translating my offline business experience to my online experience here. In my business it?s fairly hard if not impossible for someone to refer a product they have never seen or used. Or they might say I saw this product at aunt harriets and it sure looks nice, or aunt harriet is happy with her new bath tub...

    How do you give word of mouth for something you have never used?

    I have seen affiliates promoting products that they don?t even own. I personally have bought the products I recommend, read them or used them to some extent.

    So?should I be of the mind that affiliate commissions should be 50% minimum. Or lower?.let?s say 20% ? and that only a true joint venture should be 50%. And that affliates only get the 50% commish after having bought the product...?

    Should I believe that one of your affiliates blasting an email to their list, justifies a 50% commission.. Should I contact a merchant and say hey, I have a product I?d like to market to your list. And offer them a 50% commish?

    any thoughts on this ?

    Does giving high affiliate commissions turn the head of some affiliates?.

    I?m sure, many affiliates will sign up and then not sell. Either because they lack the experience or knowledge.

    Does, it also encourage the good affiliates to use ?paid? advertising methods, since they wouldn?t normally be able to afford that with a smaller commission.

    Does, a high commission encourage (the good) affiliates to sell. Even if I give away most of my profits. Is getting a NEW customer much more expensive and time consuming than selling to an existing customer.
    There are affiliates who are motivated (and paid well) sell and do all the hard work?bringing in first time buyers. Should they be compensated additionally for the addition to the opt in list?

    Another thing I have thought about is this: do some affiliates feel resentful that they are the ones building huge opt in lists for other marketers. So from that standpoint, are they interested in directing traffic elsewhere and building someone else?s list and just getting an off the top commish?.

    Should I as a merchant also add an incentive or a kick back for the amount of people that are added to my future opt in lists ?

    Is this why commissions keep rising?
    Back to cross promoting products?.I know this is a competitive industry. SO If someone is going to recommend my product, should I offer a big commish?, because I know that in effect he?s my competition (he?ll be selling similar products). And by recommending his product to MY list, I know some of my list will end up on his list.
    Any opinions on this?
     
  2. Linda Buquet

    Linda Buquet <span style="color: #daa520;font-weight: bold;">Me

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    Hi Shane,

    Interesting topic that I hope spurs some good discussion. Hope you don't mind but I 'moved it here to the general forum where more people will see it.

    Good luck on the ebook. Hey guys - Ideas?
     

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