What commission type do you look for?

[utdream]

Hi Folks,

I'm looking for feedback on how to make an affiliate program for a hosting company work better for active affiliates. Your input would be greatly appreciated!

Please take a look at the two following commission structures:

Percentage-based Commission:

If you could earn a commission rate of 100% of the first months payment for a new hosting account where average monthly payment company wide is $100/mo. With these metrics, as an affiliate you'd be able to make an average return of $100/sale.

Flat-rate Commission:

If you could earn a flat-commission rate based on your number of sales:

Shared Hosting: $30/sale

VPS or Dedicated:
1-5 sales per month: $50/sale
6-10 sales per month: $75/sale
11-20 sales per month: $100/sale
21+ sales per month: $125/sale

Benefits of Each System

Percentage-based commissions would presumably provide higher rewards for smaller affiliates, or high-producing affiliates could also target their efforts toward a higher-end client base.

Flat-rate commissions are predictable and measured, with the hosting company taking the majority of both the risk and potential rewards of higher-end clients.

The Question

Which of these two commission systems would be more appealing to you as an affiliate marketer, and why would you chose that system?

 

[utdream]

No one has any preference on commissions vs flat rate??

 

[Dr. Forum]

I do feel that the percentage based commission is the best move you can have. One thing I am not for a fixed rate is that there are no motivations once the minimum standards have been made. However, with the percentage, you are sure that the more productive things get, the more you will earn. I am therefore in full support for te percentage because f the above benefits.

 

[game333]

Flat-rate is a better option to attract consistant affiliates.

 

[adcombopr]

For our opinion, we can make two systems in th work.

1. Start first and second affiliate parograms (flat-rate Commission, benefits of Each System)
2. Make good offers and LP
3. Start measuring of first and second programs.
4. Measuring during one - two month
5. And after, you can choose really effective affiliate program for your business.

 

[utdream]

Thanks so much for your feedback! If a hosting company offered both models, would you be more or less inclined to work with them - or would it be confusing and/or sound like too much work? In marketing, simplicity is a major factor, I'm wondering if offering both models is overly complicated.

Thanks again for your opinions! It really makes a difference!