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Affiliate programs: what’s a fair commission?
By admin | March 14, 2008
While affiliate programs can vary somewhat, it is generally true that the top 100 affiliate marketing programs will pay anywhere from 5% — 10% — 20% or more in commission. Some programs that pay a lower percentage do so because the product/service is more expensive to purchase. A software product, for example, that costs $150 to purchase may only pay a 10% commission — whereas one that only costs $50 to purchase may pay a 25% commission. In addition to looking at your commissions per sale, you should also look at the conversion rate — the number of inquiries you will need to generate before a sale is made. All other things being equal, I would rather choose to work with an affiliate program that has a higher conversion rate, even if the commission is lower — simply because a greater percentage of your customers will be more willing to buy it.
Topics: Business |