Affiliate marketing - what commission rate?

[Rain-shine]

Can anyone give me advice on the average commission per referral/sale that I should offer with regards to affiliate marketing?

There is a business in Australia who would like to link to my site and receive commission for sales but I don't know what is an acceptable rate for me to offer them in return for a sale?

Also, would i need to employ some sort of software to ensure they knew they would be properly rewarded for each sale?

Views/comments gratefully received on this.

Many thanks in advance

Laura

 

[Annoying Donkey]

That's a how long is a piece of string question.

Amazon gives 5% on most things, rising to 10%? (not sure of that). Clickbank is commonly 50-100%.

You need to look at the lifetime customer value and the cost of acquisition to decide how much you can afford to pay.

If you have back end products to offer, then 100% might be feasable.

 

[ThomasBuckland]

Hi, yeah weblinkplus has it right, because amazon are physical products they have to be shipped, manufactured, materials paid for ETC which means there are loads of overheads before they have even sold or promoted their product.

Clickbank on the other hand is a digital marketplace, so the products are usually ebooks, information courses, videos, which only need to be created once! And if the creator made 1 sale, it would cost him the same as if he made 1000 sales to create the product, and hence it is worth the creator offering a large proportion of their sales figure as most of it is profit. (There is no delivery, creation or material costs.) That is why they offer between 50-75% commission.

Hope that helps.

 

[ludachris]

It completely depends on your market and product(s). Its common to see 10% in some industries (e.g gifts) but in others, like travel and holidays you will do well to get over 2%.

I suggest having a look at what your competitors charge. Or have a look through Affiliate Windows merchants to get an idea of what a good commission rate for you would be.

 

[lynxus]

We tend to offer people 10% to 40% (sometimes more) depending on affiliate performance.

The more they sell, the more % we offer them.

 

[HiteshMistry]

We offer 20%. it has worked really well.

 

[amphis software]

we pay 20% to affiliates. resellers get 20-40% discount. we are also now setting up discount codes where the client gets a 5% discount and the affiliate gets paid 25%.

Tom

 

[Vistatico]

The harder the niche the more you get. I know some programs offering up to 50% commission, average of $60 per sale..

 

[NewRiseDigital]

For software you can try iDevAfilliate, or if your products are digital you can set up your product on clickbank and offer it out to their affilaite network and use their affiliate software built into their site.

One of the key factors when dealing with affiliate commissions is how much traffic your affiliates can bring.

Our affiliate scheme offers 25% as a standard percentage, although for people who have more influence / large lists to promote to we go up to 75% affiliate percentages since they're bringing in volume and their contacts are more valuable to us.

Good luck!

 

[EddyP]

Seeing that it is so difficult to attract affiliates in the first place, the higher the percentage the better.

The bottom line though is that the rate still needs to be profitable for you. You could use a payment gateway to save a little on the cost of transfer fees. PayPal is good for this, or alternatives like NETELLER have specific business accounts, see here - http://www.neteller.com/business/

The idea is to be able to make as attractive an offer as possible for affiliates - so 20%+ is ideal.

 

[ther]

I Joined recently Affiliate Program in Fitness Industry which offer 100% residual commission because there is monthly fee. So every month 50% from fee and 50% from earnings your reseller. You can imagine what happen if you have a few good partners

 

[InternetMarketingPlatinum]

What commission rate on what?? You can have 100% commission rate if the terms state this. For instance, if the seller allows this because they make lots on upsells after the initial product/service is sold thanks to your intervention/direction.

 

[ther]

Yes , you are right. For me important is that there is monthly subscripton fee which guarantee stable, passive income moth by month.
Company offer 3 kinds of earning money, which I can call this model 50:50:20:
50% from every fee of people who joined to you (user or reseller)
50% from earnings of your direct resellers (this is important in my opinion, becasue when you will find a few effective resellers you can earn a lot of money from their wok)
around 20$ from every 6 resellers below you in your strucure (2 in one line, 4 in second line) - this is a great bonus because this people can be put below you by you, by your upline or your direct resellers. So if you have a few smart people who want to build online income, you can create very effective and profitable team.
And company has upsells which let them earn money for them. For me it is right now one of the best Affiliate Marketing solution on the market at this moment.
They do also interesting time promotion - for example till the end of the year anyone can try this product for 1$ for 7 days to see all details inside.

 

[sophiesearch]

You need to join an affiliate network for tracking and commission management. It depends on your industry/produicts as to what commission you charge. Offering exclusive commissions is also widely appreciated by affiliates. so for example we'd offer a standard of 10%, but then one week put someone on 11/12% or higher and see if it encouraged them to improve sales, and on special promotions, use a commission of 20%. This was for a fashion retailer and drove loads of sales with the cost being very little. I'd recommend doing some industry research though and it does depend what you can afford.