FOR MERCHANTS: Whats a competitive percentage to give to an affiliate?

As a merchant I would like to offer a competitive percentage but also not give away the farm.

So if a product cost $25 + $5 for S/H, what would be a competitive percentage or dollar amount to give to affiliates?

thanks

 

anyone have a response?

 

Depends on a lot of factors. Conversion rate, how many people are buying said product daily etc.

Do you know the conversion rate of your product ( from the impression all the way to a sale), and do you know how many of these are being sold daily on the net?

If a ton of people are buying this product everyday, then affiliates will accept lower commissions and make that up in volume.

 

thanks for the answer.

 

This depends on many factors like is it tangible or a digital product?

You also must consider to give enough motivation for your affiliates. If it is a highly competitive product the commisons are lower.
You must search your competitors, if any, and adjust your product accordingly.

 

Yep, it depends on a lot of factors. Although you don't want to give away the farm, affiliates will not want to help you if you pay very low rates.

The best thing to do is to look at some of your competitors that also has an affiliate program that sells similar to the same products and you will then get a better idea of what commission rates you should be using.

 

Depends on your costs. Aprtt from S/H and prime cost, there may be some other costs like the probability of refunds etc. Many pay from 10% to 30%. I have seen digital products pay 70% but of course they can afford to as no costs are involved in managing the products.

 

A general rule many affiliates seem to work with in the CPA market is a pay of no less than $20 for any campaign which requires a credit card. Of course, that's not possible if your only revenue is the cost of the product.

If you can't hit that mark, I'd suggest trying to work some upsells into your surfer-sale mousetrap.

 

Well my product is a tangible (in my sig), and its the only source of revenue. I was thinking 40-50% which is around $15.

If my product converts well does that give me bargaining power to bring the % down? Also what are "upsells into your surfer-sale mousetrap."

thanks