Am slowly working on adding more templates into my 'shop' and was also considering setting up an affiliate system. It would pay a set percentage for each sale an user is bringing in. 5% seems too small to me, so am considering paying 7% of each sale. Is it too small? Should I go with 10% or more?
Depends on your profit margin but to attract the most affiliates more is better. The higher you pay them the more they market your products. This is why ClickBank is so succesful, they are known for having high commission products. I would go for at least 10% or more. The key here is quanity. It is better to make 1000 sales profiting some than having few sales with better profits. It will add up to you making more money in the end. Happy affiliates drive sales.