Wednesday, April 15, 2009

A Sneak Peek at several factors that can Affect your affiliate marketing commissions.

Commissions are a type of performance -based income, in that the amount of commissions depends on how much an affiliate can produce based on the sales brought in by his leads.There are several factors that will affect the amount of commissions you will earn from an affiliate marketing program.

  • The choice of affiliate marketing program:Affiliate marketing programs are all over the web.Not all pay the same amount of commissions to their affiliates.There are programs offering a low pay scale ranging from about 5-15 percent per sale or performance while others may pay as much as 60-75 percent, all dependent on the type of products or services being offered. Bottomline is,choosing a program that pays a higher commission will result to higher sales.However,this is tricky. If you have a hot niche or at least a good market following,taking advantage of affiliate marketing that pays higher commissions will be a no brainer. But if you cannot capture the desired market, you might want to combine a number of programs that will bring you the kind of income you desire. The type of earning opportunity an affiliate program offers, will also make a difference in the amount of commissions you can hope to earn.Two-tier programs, for example offer a better income generating opportunity than flat programs. They offer two sources of of income namely,from commissions on sales o f a product or service and from recruitment of a new affiliate. There are also affiliate programs that offer recurring commissions in which an affiliate can earn each time a lead or member renews a subscription or membership. This means you can be earning for as long as your lead or recruit continues to use the product or service. Giving careful consideration to these earning opportunities is important to maximizing your profits.
  • Product Type: That your choice of product affects your commissions cannot be overemphasized. Promoting a product in a saturated market will mean less or no sales for you. For example, the credit card market is virtually saturated right now.On the other hand, a popular or in-demand item can mean large sales if you have a strong and ready market. You will need to research how you can perform based on statistics offered by the affiliate marketing program you wish to join. Clickbank, for example, provides you with the necessary information about a product based on past performance.
  • Available Market:Affiliate commissions are heavily dependent on how effective the affiliate sales and marketing strategies are. The type of market an affiliate chooses to sell to and also the affiliate popularity in the market also determines commissions earned. A small but highly targeted market is more likely to bring in higher commissions for an affiliate while a large but generic market may not produce the same results.

  • The Conversion Period: This refers to the time from which you bring in your lead until the time that he performs a desired action. You will as much as possible, try to shorten this time interval. This action varies - a lead may subscribe to a service, purchase a product, take part in an online poll or become an affiliate. The incentives you give will determine the conversion of customers to buyers. The conversion period can last from a very few hours to about 30-60 days. Bottom line is you have to be persuasive enough so that your leads can shorten the conversion period. Apply these strategies carefully and see your commissions rise to the next level.
God bless you in your endeavors.
TO your success.

1 comment:

  1. Thanks for these timely tips. Affiliate marketing is a very viable income source in this hard economic climate.

    ReplyDelete