Understand the different sales models. The most common forms of paid channel advertising are cost-per-mille (CPM) and cost-per-click (CPC). CPM ads are the banners you see across the tops of webpages. You are billed a flat rate based on the number of times the ad is displayed. CPC ads are the paid advertising results you see on a Google search results page or in the side margin on a Facebook page. You pay for every click on your ad.
Unfortunately, the 2Checkout dashboard is a bit limited in scope, making it difficult to get any metrics on conversion rates or even sorting by commission payouts. The workaround is to go to the Avangate store, which does list their best-selling products, and then search for these on the affiliate dashboard. That being said, 2Checkout does offer products from more than 4,000 different vendors, making it the leading affiliate network for software and digital products.
While these models have diminished in mature e-commerce and online advertising markets they are still prevalent in some more nascent industries. China is one example where Affiliate Marketing does not overtly resemble the same model in the West. With many affiliates being paid a flat "Cost Per Day" with some networks offering Cost Per Click or CPM.
It also leaves you room to offer higher commissions in the form of bonuses or contests. (ie: For the month of December, we're offering a $100 bonus to all affiliates who reach $1000 in commissions.) That way you're not stuck offering a high commission all the time – but it's something you can offer as a bonus to really get your affiliate's attention and ramp up sales during certain times of the year.
ClickBank allows you to join for free, and the approval process is virtually automatic, so it’s a great choice for people entering the affiliated game for the first time. ClickBank has a ton of information, including FAQs, walk-throughs, and videos available, so the barrier to entry is quite low. There’s also a (paid) program called ClickBank University with courses and assistance from experienced marketers.
The easiest thing to do is to sign up for an affiliate marketing network like Commission Junction. They provide a marketplace where your affiliate program will be advertised to other affiliate marketers. They also provide the tracking software for your affiliates so you don’t have to build your own tracking system. In some ways this is better because it takes care of the trust issues. Affiliates are always suspicious of whether or not they’re getting credited for the sales they generate. By having an intermediary take care of transaction tracking and payments, the fear of being cheated is alleviated.
Pyramid schemes - a form of multi-level marketing - involve paying commissions to distributors only for recruiting new distributors. Pyramid schemes are illegal in most states because the plans inevitably collapse when no new distributors can be recruited. When a plan collapses, most people - except those at the top of the pyramid - lose their money.
We will pay Standard Program Fees and Special Program Fees in the default currency for an Amazon Site approximately 60 days following the end of each calendar month in which they were earned by the method described below that you have selected. You may be permitted to elect to receive payment in a currency other than the default currency for an Amazon Site. If you choose to do so, you agree that the conversion rate will be determined in accordance with Amazon’s operating standards.
There’s a good reason why ClickBank is still a strong contender, however it does tend to focus more on digital products which may be of questionable quality. Yes, the review process is more professional these days, but it’s still primarily focused on selling digital products, especially “how to make money” courses and the like. That being said, there are some genuinely high-quality products on offer, and few affiliate programs are bigger than ClickBank, especially in selling (primarily digital) books.
Another strategy to keep in mind is to leave room for seasonal and temporary commission increases. You may not be able to pay your reps at 18% all year round, but maybe you can bump them up for a few weeks each year to help juice your revenue and keep reps motivated. It works, and it’s another way to stay competitive in your niche even if your rates are on the lower side of the general range.
The Market Health Affiliate Program allows you to market and promote the world’s leading health and beauty offers online. We offer the highest paying affiliate program and best tracking software in our industry. If you have a web site and are interested in making money off the explosive sales in the health and beauty industry, then MarketHealth.com is perfect for you. Offers include products in the health, beauty, supplement, weight loss, and skin care industries.
To summarise, flexibility and an understanding of the motivations for different affiliate types is the key factor in setting an intelligent commission structure for any affiliate programme. A full appreciation of the finer details should ultimately result in greater engagement with affiliates and crucially an increase in branding, sales and revenue.
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2) Customer Acquisition Cost – What are you currently spending to acquire new customers? Whatever that amount is, assuming you're profitable, you could technically offer up to that amount to your affiliates for generating new customers. If you can safely spend 10% to acquire new customers through your ad channels, you could afford to offer that rate to your affiliates. (But it doesn't mean you have to. It might just mean you need to optimize your ad spend because you're leaving money on the table.)
However, if you are selling a niche product (with a smaller market potential – for example: commemorative and collectable plates) you may need to offer a higher commission rate to entice affiliates to join the program. You’ll have fewer affiliates but they will be highly motivated. This can result in more sales for your and ultimately more revenue.
With the introduction of the internet, advertisers realised that they could increase their revenue by rewarding websites who refer customers to your site that go on to buy something from you. In essence, this is affiliate marketing or performance-based marketing. An advertiser rewards a website a set amount of commission for each customer that the site refers who goes on to make a purchase.
Cost per click was more common in the early days of affiliate marketing but has diminished in use over time due to click fraud issues very similar to the click fraud issues modern search engines are facing today. Contextual advertising programs are not considered in the statistic pertaining to the diminished use of cost per click, as it is uncertain if contextual advertising can be considered affiliate marketing.