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Tuesday, 14 January 2014

The Truth About Affiliate Commissions

How can you boost your affiliate commissions?
Scenario: You participate in one or many affiliate programs. You get plenty of hits. Your conversion ratio is about 2% (which is good) and yet you're only making $42.80 per month. It's nothing to shout about.
Consider this: If you put just as much time and effort into marketing each affiliate program, then receiving affiliate commissions of $5 per order is much better than receiving affiliate commissions of $1 per order. It costs you just as much in your own time yet you make 5 times as much.
Why join affiliate programs that sell products or services with such low affiliate commissions? For a reasonable return you will need extremely high volume. How about earning $65 per sale? Or perhaps even $100 per sale?
I hear you say that it is difficult to get many sales of this size - but even if you only got 5 sales per month from a $100 affiliate commission that would be $6,000 per year from just one program. Compare that to the $1 commission per affiliate program. You would have to sell 500 items per month and 6,000 per year. On a sales ratio of 2% this would mean you would have to get 300,000 visitors per annum or 25,000 visitors per month. That is very hard!
With the $100 product you need only 3,000 visitors per annum or 250 visitors per month.
Maybe you might not get 60 sales out of 3,000 visitors. Lets say you still get 60 sales but out of 30,000 visitors. You still have 1/10th of the number of visitors for the same amount of affiliate commissions per annum of $6,000. And we all know how difficult it can be to get traffic.
Sell products or services with higher value affiliate commissions and you need less traffic. Now I like it when someone tells me I need LESS traffic!
About the author: David McKenzie is the author of a new e-book titled "The Facts You Should Know About Affiliate Programs" Get a Free 5 Day Email Course http://www.1sthomebasedbusiness.com
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