I have a problem that isn't necessarily bad but may cause an issue. On my Beat Eczema product, my $/sale is showing $18.89 but the real payout for affiliates is over $20. I am afraid that future potential affiliates will see this and think the refund rate is high (it is under 7%). The reason it is low and falling is that I have a $14.99 OTO on the ty page that actually converts about 20% of the time. The more I sell the lower the $/sale goes. If you were looking for a product to promote, would that $/sale in the market place scare you off?
I've had this problem multiple times as well. If it's only fluctuating 5-10 it may not be too bad re recruitment, just make sure you outline the customer journey on your aff page (you probably do)... two options to beef it up that I've played with. **OTO set it the same price or higher as your front end. You may get less conversions, you may get more, money earned may not budge but it depends on how important the CB charting is for you. **Simply move your OTO into a 'page2' before they buy, as a last minute upgrade, then have both options on that page. This one worked well for the tfrp project when it launched actually. It saves the customer from having to input their CC data again, I found this method to be best so far... Then once in the backend you can still give them an upsell of some kind, extending the customer journey/monetization. Cheers hope that helps. N.
It's reasonably important to me but sometimes I'll spend some effort on products with payouts in the $15-$20 range. $15 is probably the min. payout I'd bother with.
I usually don't look at anything, which is less than $20... There are lots of great products, that convert amazingly, and offers $30-40+ commissions.
Nothing less than $50-$60, it's just not profitable from a PPC standpoint with anything less. Even $50-$60 is really cutting it close. I really don't care what the product is, I just shoot for high conversions and high payout.
I would say that $15 is the lowest I would go also but the lowest I'm promoting at the moment is $19 commission.
I appreciate all the input. I guess what I was really asking was do you pay attention to the $/sale from a "what it should be" stand point. For example, if a product is $99 and has a 75% payout you would expect the $/sale to be $67.93. Now if in the market place it said $61 do you actually pay attention to this or are you just thinking "Wow.... $61 payout". I think Norb gave me a couple of solutions that will take away the need to worry about it. As for the direction the thread has begun to go, I think it is impossible to pick a price point. i have lost a lot of money with products that payout $100 and i have made a ton of money with products that paid sh*t. Depends on so many variables. As a rule of thumb I stick to the $20+ products. Ultimately the payout is meaningless. It is all about the profit margin. $6 cost of conversion on a $20 payout is much better than a $33 payout on a $20 cost of conversion. More profit plus less money tied up in advertising costs which allows you to explore other niches.
Yeah, I rarely go under $20 because of advertising costs BUT ultimately, as you said domainiac, I don't give a damn about commissions if I'm able to make profit from it and automate it.
If I understand the question correctly, I would simply do the math and see for myself that your refund rate is less than 7%. This isn't bad and wouldn't bother me. If I follow the direction of the thread, then I would have to say that I would probably stay away from any product with such a low payout. There are some exceptions.
Some of the 'easy sells' are actually below $20 but I'm trying to focus on higher commissions as the efforts for both are pretty much the same. It's all about perception, really -- sometimes, a higher-cost product is easier to push to buyers compared to lower-cost ones.
I think people rarely actually calculate the commission themselves. They just look at given number on the marketplace or CB-Analytics, and that's it...Few dollars don't make a huge difference.