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  #1 (permalink)  
Old 01-23-2013, 09:35 AM
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Join Date: Jan 2013
Location: Johannesburg, South Africa
Posts: 9
Default Little vs Big? Who wins out?

I notice that the majority of affiliate marketing concentrates on rather small commissions. My math tells me that selling 1000 products at a $10 commission needs in the region of 10 000 leads (if your conversion and click through rates are that good).

If I sell a high-end product with a $500 commission, I only needs make 20 sales, and so would only need in the region of 200 leads. Seems like a lot less work and makes a lot more sense to me!

Why do we concentrate on the small money? Just putting it out there, is all!
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Old 01-23-2013, 10:30 AM
Ecaffiliate's Avatar
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Join Date: Nov 2012
Location: Canada
Posts: 38

You could also look at it with the largest number if items sold such as a child's game "Spot It" retails for $10 - 15 amazon. You may beat your odds with selling more as to selling few of a more expensive item.

I also beleive that you make bigger commisssion the more you sell. That might improve the commissions received as well.
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Old 01-23-2013, 11:24 AM
danasurvey's Avatar
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Join Date: Mar 2007
Location: United States
Posts: 16,327

I actually focus on FREE myself. In this economy, many people have very little to spend and are looking for ways to make more money. The comissions may be small by comparision, but they are consistant.
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Old 01-23-2013, 12:23 PM
WorkitSmart's Avatar
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Join Date: Aug 2010
Location: Texas - I wasn't born here, but I got here as fast as I could.
Posts: 91
Default Affiliate Commissions

Of course there are a whole lot of commissions between $10-$500.

The higher, as in $500+, demands a certain level of trust and time. Typically pp don't spend that kind of money impulsively so you'll spend quite a bit of effort cultivating those relationships.

Plus you must know your audience..

For example, I have a site for newbies.. We actually set up their Wordpress blog free when they buy hosting thru our affiliate link.

Now, once they have a blog up and running, they probably need some guidance on building their business.

There are a plethora of awesome products on the market for them to benefit from. One being Brendon Burchard's product that cost $2000 (my commission $1000.)

But you have to ask yourself, would a person that just got a free website be in the market for a $2000 product? Maybe, but not likely. So I offer them a killer product of huge value and only cost $97. (my commission $72)

If I had both products on my site, which do you think I'd sell more of?

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Old 01-23-2013, 01:55 PM
summerskiss88's Avatar
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Join Date: Jan 2013
Posts: 27

Great question about why we focus on the small money! I agree with Workit's point that it is a little more difficult to get customers to purchase something that's more expensive.

But I personally do not just focus on the low price items. I have more than one site and on one site I focus on inexpensive items and on another I focus on higher priced items. Different audiences and topics will work better with different price points, I believe

Oh yea! ECaff is also right about getting a bigger commission percentage with the more items you sell. Like with one of my programs, it starts out at x% but once I sell x number of items I start earning a bigger percentage. So it can be better to sell more inexpensive items that fewer expensive ones.

Last edited by summerskiss88; 01-23-2013 at 02:03 PM. Reason: forgot to add something :)
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Old 01-24-2013, 12:07 PM
AllanJames's Avatar
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Join Date: Sep 2009
Location: New Zealand
Posts: 478

From my experience, and those I see from my students, I don't think the value of a offer has much to do with profitability.

The real problems are twofold:

1) Not enough targeted, ready to buy traffic. Far too much time is wasted on SEO in a constantly changing playing field (thanks Google ) and in, so called, free promotion methods when there are faster an more profitable methods available. See my post here for one of them:

2) The lack of a deep and high converting sales funnel. Most people just send people to a sales page and leave it at that. They don't get them on a list, expose them to the offer several times and offer upsells and downsells.
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Old 01-25-2013, 08:42 AM
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Join Date: Jan 2013
Location: Johannesburg, South Africa
Posts: 9

I totally agree with WorkitSmart. I have found far more success with conversion rates AFTER building a longlasting, trust relationship with my list! It is the relationship and the trust that sell, not always the product.

Allan, I am with you ALL the way on the SEO bit! I think SEO is HIGHLY overrated! Google changes their algorithms so often, I am sure that not even THEY know what they look for regarding SEO. I have concentrated on relationship building with my lists (Attraction Marketing!) and also over producing quality content on my sites. All of my sites cross-reference and compliment each other, and I find quite a lot of sales across my sites to the same customers.

I have never had any of my sites list in the top 5 pages of any Google search EVER! I don't think that has ever minimized sales potential for me. Concentrating on relationship building and attraction marketing allows me to see an average conversion rate across my sites of 15%! One particular 3 month campaign saw a staggering 62% conversion rate!! So much for SEO!!
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Old 02-24-2013, 02:03 AM
sabatek's Avatar
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Join Date: Feb 2013
Location: Seattle
Posts: 30

It really just matters on the product itself. If it a great product and its selling for $25 and the commission is high then I would do it.
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