Setting up an affiliate program

[spidersites]

Hello
I charge my customers a monthly fee. I am thinking of starting an affiliate or referral program offering a percentage of this. Im thnking of %20. So for a basic customer at £10 a month this means an income of £2 for each customer. For higher level customers this will be more.

Is this sufficient to attract people to do referals? A successful affiliate could make a large monthly income from this. Or should I offer a one off payment for example of £10.


For the monthly income, I am thinking I would need to set a fixed term for this income . Im thinking 20% for 5 years - so the affiliate will want to continue rather than resting if they are happy with their income.

Any thoughts please

 

[F1SEO]

Most affiliates are interested in residual income so the monthly sounds better.

However at the level of £2 a customer it might be hard to interest an affiliate.

An affiliate might be interested in higher levels but it sometimes depends if it's a niche market or a saturated market?

 

[Annoying Donkey]

However at the level of £2 a customer it might be hard to interest an affiliate.

I agree, even with monthly recurring. There are far better affiliate deals out there.

I'd also have issues with the product. I'd need to be sure the customer was getting a return on their £10/month.

 

[spidersites]

Hello
the £10 is the starting price. The monthly fee could be as much as £40, so if that's the case they get a monthly fee of £8.

If 20% is not a fair cut - how much should I offer?
thanks

 

[Annoying Donkey]

If 20% is not a fair cut - how much should I offer?

Not really a matter of fair. £2 per customer would need 15,000 customers just to make the average UK salary. Or an average of about a quarter of an hour spent getting each customer just to make the minimum wage.

I could make much more by just building a single site per month and selling it direct to the business, along with the additional possibility of upsells and further sales down the line.

If you had a back end offer you could offer 100% and make your profit on the back end. Offers on WSOs for instance often offer 100% plus 50% of the OTO/Upsell to affiliates. Marketing is almost always the greatest cost to any business.

You might want to make an offer to existing customers. They might appreciate fee free months, or bonus cash. However, I'd think it unlikely you could make an attractive enough offer to someone making a full time living - though I could be wrong...

 

[Websitehandyman]

I use such affiliates, if you want to attract people then you'll need to give at least 25% of the yearly fee.

 

[Annoying Donkey]

Not really a matter of fair. £2 per customer would need 15,000 customers just to make the average UK salary. Or an average of about a quarter of an hour spent getting each customer just to make the minimum wage.

Of course that figure is wrong - it's £2 recurring, so £24 pa or 1250 customers...

I took a look at warrior plus and affiliates can make around the same per sale. The difference is that they probably have a list of serial WSO buyers, so they could make average of £24 per sale every week.

I use such affiliates, if you want to attract people then you'll need to give at least 25% of the yearly fee.

Amazon offer 5%.

Selling websites is pretty competitive, so you'd want a fairly high margin to succeed. I'd also want a sales package that included proof of a return for the customer... I've yet to see a DIY website package, like the OPs, produce a return.

 

[andrewflower12]

hey spider

at starting point you can offer them as 20% but as fast as your business gets big height than you can offer than £10 as per my thinking