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Need advice on commission structure
Old 06-07-2009, 07:35 AM Need advice on commission structure
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Was hoping for some advice on the commission structure for affiliates. I am thinking about joining an affiliate network and am a bit undecided on which commission structure to use. Any advice would be greatly appreciated.

How important is the percentage that is offered?
Is a fix or a tier structure more appealing?
What are the deciding factors for you when choosing a merchant?
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Old 06-12-2009, 01:09 PM Re: Need advice on commission structure
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I find people are more responsive to join a program with a fixed. but the tiered makes the affiliates try to do more work to earn those better %.

As far as it goes for how much. you've got to think to yourself: what was my Profit from that sale. How much do i want to keep for myself. and how thankful am i to my affiliate to bringing me that sale.
clickinks has UP TO 25% commission. its really between 21-25% for certain products like our compatibles. and 1-5% for OEM (because they are so expensive to us)
We sell more compatibles then OEMs (mostly because OEMs are almost 4-5times the cost of a compatible)

so look at the chart. look at your cost. look at your profit. and feel a little love for your affiliates.
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Old 07-20-2009, 05:51 AM Re: Need advice on commission structure
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I find people are more responsive to join a program with a fixed.
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Old 07-20-2009, 07:25 PM Re: Need advice on commission structure
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I guess it depends what you're offering.

Usually, in retail it's a percentage of sale but in finance it's often a fixed commission.

The commission you offer but also your conversion rate is what's gonna attract affiliates.

The mix of both will make your programme attractive for affiliates.
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Old 08-10-2009, 07:08 PM Re: Need advice on commission structure
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Commission rates vary greatly by industry. Ebooks can be as high as 75% whereas computers and electronics as low as 2%.

So you need to take inventory of other affiliate programs in your space to see what they pay out and how they structure their rates, then try to offer a little more.

Hope this helps and best of luck!
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