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How to decide on a % for advertising affiliate offers?

Discussion in 'Making Money' started by Figrole, Jun 22, 2017.

  1. Figrole

    Figrole Regular Member

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    Hey guys,

    I own am Instagram account about my country (Ireland), and it's growing quite steadily, really starting to pick up steam now.

    Alot of highly engaged followers and likes and comments are growing every day.

    A newly established company who offers all inclusive trips to my country for 10 days got in touch and says wants to advertise with me.

    They don't want to pay by shoutout, instead to take me on as a partner and pay a % for my affiliate efforts.

    They charge $3750 per trip per person, so I think a % could be a very nice number.

    Should I start at 10% and see what happens?
     
  2. healzer

    healzer Jr. VIP Jr. VIP

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    Try to figure out (or estimate) their own profit margin.
    If their profit margin is pretty high, then you can ask a higher %.
    Say that the they earn $750 in pure profit per person which is a nice amount, then you could ask for 30-40% easily.
    But if their profit is only $150, then 10-20% seems more reasonable.
     
  3. zebestof230

    zebestof230 Junior Member

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    Start a negociation. Ask what % they are thinking about.
    But before that, ask yourself how much you would offer so that someone send you clients paying 3750$ per trip per person (people travel with someone most of the time).

    If I had an agency, I would give 10% eyes closed. I would even give 20%. What am I losing here ? Nothing, just gaining notoriety and maybe clients because someone is going to talk about me for free.

    The rates can easily be 70% for you and 30% for them (talking about the profits)
     
  4. Figrole

    Figrole Regular Member

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    That's all very sound advice thanks for that.


    I don't know if I'll push for highest amounts as such however, because if I can find an amount both them and I are happy with means with a bit of automation this could turn into a somewhat recurring revenue model for me.
     
  5. healzer

    healzer Jr. VIP Jr. VIP

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    Remember, you can always negotiate on a lower commission, if your initial proposal is too high for them.
    But it's much harder to negotiate for a higher commission once you propose something that was lower. :)
     
  6. virtualpurity

    virtualpurity Jr. VIP Jr. VIP

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    The offer cost is pretty high, if you calculate your % than it might seem like a lot but you cant expect to much leads to come off.

    So thats why i would recommend charging a one time fee of ex 100$ before starting to advertise so you would at least get something in advance for your troubles even if there will be no leads. Otherwise it will just come off as free advertising.

    Just my 2cents.