High demand low commission or low demand high commision

Discussion in 'Affiliate Programs' started by dantheman151, Jan 18, 2009.

  1. #1
    Hi guys,

    I'll soon be venturing into affiliate programs to make a bit extra cash from my niche directory.

    What I wanted to ask was...

    Do you guys find it better (as in more profitable) to use affiliates with lower commission for products that people are likely to buy more often (e.g. a magazine), or high commission for products that people are less likely to buy as often (e.g. a sofa)?

    Hope that makes sense. Look forward to reading your replies, thanks in advance!

    Cheers

    Dan :)
     
    dantheman151, Jan 18, 2009 IP
  2. dantheman151

    dantheman151 Peon

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    #2
    Bump. :eek: Hope someone can answer!
     
    dantheman151, Jan 19, 2009 IP
  3. Kracow

    Kracow Peon

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    #3
    What you need to look at is (EPC) rates.

    For example your directory is averaging 1000 clicks for offer (A)
    it's converting every 100 clicks for a payout of lets say $50.00.

    Thats 1000 clicks , 10 conversions, payout $500.00 = $0.50 epc

    Offer (B) had 798 clicks , 450 conversions , payout of $450 or $1 per conversion but had $0.563 epc.


    Offer B is the better offer even though you made less total money, your traffic drove a larger earnings per click rate.

    A lot of people go for the higher earners only to cycle in a non-sustainable income level month to month.

    You have to examine your offers / income from each offer and kick the one's that preform sub-par.

    This is just the basic's but until you start seeing some kind of data you won't know just what type of offers perform well vs others based on a host of factors that can't be explained in one post.
     
    Kracow, Jan 19, 2009 IP
  4. dantheman151

    dantheman151 Peon

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    #4
    Thanks for the reply. :)

    I thought as much tbh, I think we'll have to try both and see how they work out rather than trying to choose one. It occured to me last night - why just choose one?! I must be having a slow week! lol

    Again, thanks for the reply. :)
     
    dantheman151, Jan 20, 2009 IP