• How Much Affiliate Commission Is Good?

    Posted on August 24th, 2009 1 comment

    When you are searching for products or programs to promote it is so easy to go for the ones with the highest commission. After all, they will bring you the most money, right? Well, that is not always the case.

    I have a bit of a rule that I loosely go by: the higher the affiliate commission on something, the harder it will be to convert into a sale or lead. This is not always the case but it’s something to keep in mind when you’re browsing those offers.

    Just take a look at CPA networks where this could not be clearer: there are a pile of $30-$40 per lead offers in the weight loss, health and biz opp niches at the moment. Yes these are paid per lead, but they all require the visitor to take out their credit card and actually sign up for a free trial (which is not actually free as there are usually shipping charges, plus semi-hidden rebills).

    So getting your $40 per lead is not so easy after all.

    Compare that to a lead offer that is paying just $4 or $5. This might seem like a tiny amount, but if you can get 20, 50 or even 100+ leads per day then you’re going to be in good shape. These are the ones that are generally easier to convert as they usually don’t require credit card information.

    On the pay per sale front, obviously the visitor has to buy something. So the price of the item is something to consider.
    If you are receiving $50 per sale then there’s a good chance that the item costs $200 or more. You should check this out before promoting it and then decide whether your niche is a hungry enough one to have people who are willing to spend that much money.

    All in all, if you do your market and product research properly then the affiliate commission will not play such a large part in your decision of what to promote: it is best to sell something that is easy to sell and gets you a bit less commission than something that is going to be ultra tough to convert but pays more.

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