Announcement

Collapse
No announcement yet.

Sharing revenue

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Sharing revenue

    If I had a product to sell online and wanted to run an affiliate program to market it, how much should I share revenue with my affiliates? I see on Clickbanks they offer 50% or even 75% commissions to their affiliates. Are those reasonable offers?

  • #2
    The Affiliate commission you should offer depends on the profit margin you have on the products you sell. You should make sure that you are earning a good amount of money even after giving commission to affiliates so that the affiliate commission offered does not affect your turnover and you can run your business easily

    Comment


    • #3
      I agree with Catherine. May be you can start off with a smaller commission percentage and later as your business grows you can offer a higher percentage. Besides this, selecting a profitable market is very important when it comes to affiliates. You will want to make sure that the people in the market are willing to spend money on your product.

      Sales: 0800 862 0380 || Skype: jenniferkent_uk

      Comment


      • #4
        GWilson, what type of product/services you're dealing with? Is that recurring revenue business model or One-Time sale?

        Comment


        • #5
          Well, I have yet to create the product, but I would be of the one-time sale type. I am thinking of selling digital products like ebooks or software, so that I don't need to deal with shipping and handling.

          Comment


          • #6
            @GWilson : As it's one-time sale you should keep 50% profit margin, offer 10% to your affiliates and keep the remaining to fund your business.
            :hammering:

            Comment


            • #7
              It would be a good option to keep a scheme or say a kind of pattern to offer commission to affiliates.

              As Harry mentioned, you can start by offering 10% commission to affiliates who refer 1 customer and then offer 12% or 15% commission to affiliates who refer 5 or more than 5 customers.

              I am well aware of the fact that this will reduce your profit margin, however, this will increase your turnover which is certainly helpful

              Comment


              • #8
                Normally people are offering 30 to 40% commission for the product you're dealing with, I think to compete the market effectively you should at least offer 20 to 30% commission per sale. If your product is unique you can reduce the commission structure substantially.

                Comment

                Working...
                X