We own a small, Big Game fishing tackle site that sells both wholesale and retail. We are looking into an Affiliate Marketing company to increase our retail sales and are trying to find out if there is an average commission percentage based upon our industry. When looking for a marketing company do they tell you the % or do you tell them?
you sell physical products? Then the percentages depend on what you can afford to give away and still make a decent profit. If you're selling a 50 dollar item which costs about 30 dollars to make you're left with a mere 20 dollar proft. So offering a 50% commission isn't very sustainable. If you'd give 20% which is 10 dollars you're left with ten so that might be a bit more profitable for you. Percentages are completely in your hands. I wouldn't offer commissions if the "marketing company" would have the right to choose the percentages. That would suck. hope that helps a bit, jobic
Hey Bigeye, Have you checked out the competition and see what they're giving their affiliates? This is the best way to figure out "the norm" within your industry. Just try to give a little more of a percentage than your biggest competitor and you'll (hopefully) get more affiliates. I would check out www.cj.com and see what kind of competition might be using Commission Junction! HTH, Clint
%%%%%%%%%%%%%% Its all about the money man. Think about it, the companies who have traffic and good traffic are not stupid. They have built empires on the revshare market. Good traffic cost money. If you don't give a marketer enough money to promote then its simple no one will promote it. Alot of industries online have awesome payouts and that is why they make tons of money. Hire a independent marketing company and let us know the results. Oh wait you have to pay them and hope you get results. When you use us we dont get paid unless we produce. So the better you pay people like us the more we want to invest in promoting you if you convert. People will test you and see if money can be made. Best advice is hire a good webmaster to run your company and pick a percent that makes sence. The nice thing for webmasters is we have places like this to speak about firms like you. So if it sucks people know. If its good some will talk and more will come to promote. Good luck to you and your adventure
First, let me thank those that have replied. I don't know of any others in our field that is pursuing an affliate marketing program so it's hard to compare %. We have unique, high-end items that range in price from $7.00 to over $2,000.00. Most of our customers are well off with sportfishing boats that cost in the millions. Would a 15% commision be reasonable on a $400.00 item and would 10% be fair on a $2,000.00? In starting this program can the % be a sliding scale? When a certain goal number is achieved increase the commision to the affliate?