Hello everyone, I just launched a new product for automating online marketing efforts. In order to help promote it I am starting a new affiliate program. So while I'm still in the development stages for it I wanted to get some opinions as to whether I'm heading in the right direction or not. The product I am selling is sold on a monthly subscription basis for a price of $49.95 a month. My thought was that a 1st tier affiliate would earn 25% and 2nd tier would earn 10%. Since the product is a subscription I would then offer recurring commissions for each month the subscriber is active. Now I know on Clickbank some commissions are much higher but this isn't a simple Ebook or something that took little time to get produced, I had to invest a lot of development dollars into getting this thing created. So am I on the right track or would some different terms work better for potential affiliates? Thank you all for your opinions!
As long as your product is high quality, have high conversions and can make affiliates good profits. You will be all set. Good luck.
I hope you product has lots of demand and will have a good conversion rate.If you have these two then just start your business right now and promote it well to get some quality affiliates to promote your product.
Thank you both for your responses. I've been an affiliate marketer for about three years but wanted to get a feel for how much people expect when promoting a product. I'm glad to hear my numbers aren't way out of line with what I thought would be reasonable.
I run a directory of residual income affiliate programs and I also have a web hosting company so I have some insight. The payment structure looks attractive, however, you should highlight some reasons why your service is worth of $50/month. Since most web hosting companies offer unlimited hosting packages with website builder for $5 - $10/month, you should give your visitors good reason to pay more. When I checked the comparison of your free and paid package I saw only one difference -- the limit of allowed domains. Since 5 domains is more than enough for many webmasters I am not sure if your paid package get good conversions. On the other hand, your website looks professionally and if can give to your affiliates information about strong points of your service and they pre-sell your product well, I believe you can expect good results.
Thanks for the feedback and the insight you have with your experiences. My product's real intent is to allow webmasters to break that usual 5 domain barrier by allowing them to automate the creation of hundreds or even thousands of sites. So for those who don't want to surpass 5 domains then I have a "lite" version. But for those who do then the paid version will give them the ability to create all those sites and manage them with one interface. I've used similar techniques on my own now for about three years and have done pretty well so it's a viable option for the serious marketer. I guess like you said though I just have to convince people this is something worth doing and paying a monthly fee for. Thanks again for the comments!
Starting an affiliate program is different from running a successful paying affiliate program. Once you have finalize your marketing plan, recruited good affiliate in introductory phase, the growth phase demand you more attractive rewards and benefits along with detail reporting. The ROI will be achieved in maturity phase, along with your product characteristics and consumption pattern you have to come up with pull and push marketing strategy. Wish you all the best for future endeavors
I agree with the push-pull marketing strategy. I have a plan in place to use traditional methods including paid search and of course standard SEO practices. But this affiliate program would allow me to reach into areas I may not be aware of and do so with additional manpower. I know it may take a while to get to peak operating condition but I'm one to stick with things for the long term so I'm confident I'll eventually get this program and the application I'm selling to the point I need them to be. Thanks for the well wishes!