1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Can I get your opinion on this affiliate pricing structure

Discussion in 'Affiliate Programs' started by CEPI, May 17, 2012.

  1. CEPI

    CEPI Power Member

    Joined:
    May 15, 2009
    Messages:
    502
    Likes Received:
    1,922
    Occupation:
    Business Turn Around & Management Consultant
    Location:
    Cosmos
    We are getting ready to launch one of our enterprise solutions softwares (cloud based) that works for the real estate, financial services, and insurance industry (expanding to others soon after) and the service costs the user $29.95 per month or $299 for a 12-month advance payment. We have always just direct marketed our products to the industries but now we want to set up affiliates.

    We are thinking of offering affiliates a 20% commission recurring monthly. So $5.99 per month, per sign up.

    Is this an appealing structure for people that handle affiliates in those industries with the price of our service?

    What input or recommendations could you give to make it appealing to quality affiliates that won't ruin our brand? Thanks so much!
     
  2. brwipens

    brwipens Regular Member

    Joined:
    Nov 18, 2007
    Messages:
    245
    Likes Received:
    254
    Without knowing your product/service, it's tough to say if 20% commission on a recurring basis is going to attract quality affiliates or not. Most of the rebill affiliate programs I have used pay a lot more, like 50% minimum. I wouldn't kill myself promoting something for $6 a month signups.

    Since you mention your product is in the real estate/financial/insurance sectors that are all very high paying commission-wise from CPA to Adsense, I think you might have a hard time getting quality with a 20% commission structure.
     
    • Thanks Thanks x 1
  3. CEPI

    CEPI Power Member

    Joined:
    May 15, 2009
    Messages:
    502
    Likes Received:
    1,922
    Occupation:
    Business Turn Around & Management Consultant
    Location:
    Cosmos
    Yeah we are currently trying to find that balance to cover costs, our customer service, pay affiliates attractively, and also keep it reasonable for our clients.

    It is a proprietary lead generation program for those industries. It's nothing conventional that's out now. I will have to see if we could do a 50% split and still cover costs. Thanks for your input. Once I can lay out the full explanation when we are at launch date, it will be easier to show conversions. We are already having an 80K agent real estate company take it on for all agents if that gives you any help with the quality of it.

    Every independent sales agent will want it.
     
    • Thanks Thanks x 1
  4. brwipens

    brwipens Regular Member

    Joined:
    Nov 18, 2007
    Messages:
    245
    Likes Received:
    254
    Like I said, I don't know your product or service so my opinion is more of an educated guess for the sectors you are marketing to. If you have something unique and with mass appeal to a large amount of people who can afford the $29/mo or annual, 20% or $6/month can look a lot better.

    From your follow-up, it sounds like your product is B2B instead of B2C, so I think that will help you more than a lot of other affiliate offers that tend to be strictly consumer. Still, you ought to make it 50% for me because now you're starting to interest me :)
     
    • Thanks Thanks x 1
  5. CEPI

    CEPI Power Member

    Joined:
    May 15, 2009
    Messages:
    502
    Likes Received:
    1,922
    Occupation:
    Business Turn Around & Management Consultant
    Location:
    Cosmos
    Well, let's put it this way... SalesForce already wants to buy our company and integrate into their system, and we don't even launch for another 45 days. LOL