September 15, 2008
Myth: Affiliate Programs with the Highest Commissions Are Best
Have you ever been lured by the promise of big commission percentages? Some people offer 80% or even 100% — how can you beat that?
Of course, if we sit and think about it, there’s more to it than just percentages. Before you decide on a product to promote, consider:
The dollar amount per sale. Percentages mean nothing because products have different prices. 100% on a $10 product is less per sale than 50% on a $30 product.
Look at conversion rates. Not all product offers are created equal and you need to evaluate your overall earnings with a program before you declare a winner.
For example, if that $10 product with the 100% commission converted 1 sale for every 40 visitors (a 2.5% conversion rate), while the $40 product with the 50% commission converted 1 sale for every 100 visitors (a 1% conversion rate) which offer would be the best to promote?
Well, let’s do the math. Yeah, I know…I hate math too, but sometimes you gotta.
In this example, the $10 product would earn us $12.50 for every 100 visitors and the $40 product would earn us $20 for every 100 visitors. If things remained constant, the $40 product would be the one to promote.
You might also consider the opportunities for recurring commissions (if available) as opposed to one time commissions. Sometimes what appears most profitable on the surface isn’t the reality at all.
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Alice,
Thank you for crushing this myth. I don’t think a lot of people think of it that way. I think a lot of people think of it as what gets them the most money right now but they need to think of what will get them the most money in the long run.
Your Myth Crushing Mondays are great.
Thanks Melissa.
Typing while holding baby, so can’t say anything profound…hehehe.
I’ve turned blue countless times going over this with beginners I’ve coach….you always seem to put something extra into it though
*coached - sorry.
LOL Dennis. We don’t deduct marks for spelling around here!
You had proven a point I had been believing all the times – the ones with the highest commission are not necessarily the best.