How Much Commission Should I Offer in My Affiliate Program?

Q: How much commission should I offer in my affiliate program?

A: How much you offer will depend on the amount you can afford, taking into consideration the lifetime value of a customer, what your competition is doing and how attractive you can make your offer.

As a general statement, information products usually have a higher commission rate – often between 25-50% with the higher end being more common. Consumer products with smaller profit margins can be as low as 5%, but don’t often go above 20%.

But what you charge should be based on your own unique business. Here are some more things to help you come to a decision:

Sometimes it’s okay to pay a bit more for a first-time customer who will buy from you over and over again.

Always see what your competition is offering, but you don’t have to get into a commission war. Just make you can make your program very attractive though good conversion rates, unique and useful promotional tools and other attractive features.

For more help in structuring your affiliate program, be sure to sign up as an Affiliate Manager Sweetie student. It’d be great to have you!