I am walking a fine, but frustrating, line with pricing my product. Basically, I've found a price that I love... but it doesn't tempt affiliates and I can't get affiliates on board. Wondering what I should do. My product that sells for $19.95. It converts like hotcakes (in my opinion). I sold 435+ this past month alone. I am pleased with the number of sales. I get great feedback from customers. My return rate is near 0%. BUT conventional affiliate wisdom is: Don't promote products that sell below $20. So, I have a couple of loyal affiliates, but most affiliates avoid my product when they see it in the marketplace. The vast majority of my customers find me through organic search. Awhile back, I raised my price to $27. Sales and profits went down big time. It was clear-- customers are happy to pay $19.95. But they will seldom fork over $27. The price was changed back to $19.95 and the sales volume immediately returned. My question--- If I want to attract more affiliates, what should I do? I was thinking of creating a separate pitch page with a higher price for affiliates. But I'd want to keep my current price and pitch page for organic searches because of my past conversion rate experience. Is this a good idea? My only fear is that people will buy the product at a higher price and then later discover it was cheaper on my main site. I'm not sure how I would handle that complaint. I welcome any thoughts or ideas that will help to to attract more, good affiliates. Thanks.
The only thing that matters to affiliates is commission, right? So even if you're offering them 75%, they are only getting $15. Now, $15 isn't bad if you've got a site with huge organic traffic...it's free money. But if you're running PPC, you'll lose your shirt. I don't care how cheap the keywords are. And many, many affilaites are using PPC. When you raised your price to $27, did you add more features to make it worth $27?
Hey fireboat, I was in a similar boat. We used to have a product that sold for 19.97 and had very few affiliates. We recently added a 5 book deal for 47 with 50% commission and the number of affiliates promoting our product has doubled. If it's possible I think you should do the same. You have a good price point and raising it for affiliates will mean you'll have a lower conversion rate. So give the customer more value and charge more I think I found you're product using my site... is your pub id fireboat?
Thanks for the the suggestions. I think you make some good points about adding more features. I have added new features since it's launch, but not when it was at $27.