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is 5% a good commission for affiliate program?

Discussion in 'Affiliate Programs' started by vitaly78, Apr 4, 2016.

  1. vitaly78

    vitaly78 Newbie

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    What would be a good commission on skin care products that sell for 40-50 dollars? is 5% a good commission? I am starting my own affiliate program.

    thanks
     
  2. Visit

    Visit Senior Member

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    75% is good, you make more that way in the long-term if it is marketed properly
     
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  3. vitaly78

    vitaly78 Newbie

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    i don't think i'll any money with that. i hope you are kidding
     
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  4. abhi007

    abhi007 Jr. VIP Jr. VIP

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    Do you mean to say referring affiliates under your belt?
     
  5. Spinethetic

    Spinethetic Registered Member

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    Don't let greed shorten your vision. Look further; With a higher commission percentage you'll get more affiliates signing up and promoting your site. Unless you have a crappy product of course.
    DO the math and look at the bigger picture for the long term. I wouldn't promote any physical product with less than 35% commission one-time commission or 20% monthly recurring commission. 5% is like your letting loose a big loogie at potential affiliates.
     
  6. CenTex Hosting

    CenTex Hosting Jr. VIP Jr. VIP

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    You have to look at it this way.

    With your product Look at what your profit is on the product.

    You should figure in product cost, shipping, staff, advertising, office and so on.

    once you figure all that in then you will have what it cost you per product. Look and see what you really make at that point.

    Now you would have your profit per item. Of that look at what you would be wiling to do out of that as a commission.

    Really its up to you and what works best for you. yes not everyone is going to promote your product because they want more money.

    The people for a product would be getting users to sign up because if they like the product they are going to tell friends.

    A true affiliate marketing rep really cares less about the product they are just looking at how they can make money
     
  7. vitaly78

    vitaly78 Newbie

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    thanks guys. i'll do some calculations. but with 5% commission affiliates will be making 3-4 dollars per each sale. is it really that bad?
     
  8. MonsterMag

    MonsterMag Power Member

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    The question shouldn't be how much they make per sale, the question should be: How much do you make per sale?
     
  9. vitaly78

    vitaly78 Newbie

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    i make about 30-35 dollars per sale. so i think paying 3-5 dollars commission is not bad.
     
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  10. MonsterMag

    MonsterMag Power Member

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    You think wrong. You think about yourself only. You don't provide anything, you are just reselling a product. The affiliate is doing all the work, so he should be paid the biggest share. If you pay shit, you get no affiliates. If you get no affiliates, you get no sales. If you get no sales, you don't make any money.
    Pay them $20-25 and you still make $10-$15 per sale without doing anything.

    But I guess everyone with half a brain will just research what you are selling, then use their affiliate program directly and make $30-35 on their own without a share for you.
     
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  11. danixD

    danixD Supreme Member

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    Look at clickbank or any cpa network, every skin offer have 20-30$ for payout
     
  12. RedMango

    RedMango Power Member

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    Exactly as above.

    Without affiliates you wouldn't make those sales.
     
  13. T2tkid

    T2tkid Elite Member

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    OP, start a case study and let us know how many Affiliate promote your product after 3 months. How much you made, etc.
     
  14. vitaly78

    vitaly78 Newbie

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    ok. i'll start with 5% and see how it goes. if i get no affiliates, i'll keep bumping it up. i honestly do see the point in making 5 dollars (if i pay super high commission).


    selling high volumes, but have low margin does not make sense for me (at least right now)
     
  15. legoknekt

    legoknekt Junior Member

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    Why would I work for you and promote your brand when I can get 2/4 times more from your competitor selling their stuff instead?

    selling high volumes makes perfect sense, you get more customers. More people get to know about your brand and they might become recurring customers if it's a good brand.
    Plus giving a higher commissions might attract people that knows about the market and knows how to get you customers, and they will work hard and spend money on your brand.
     
  16. TRUE Media Partner

    TRUE Media Partner Registered Member

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    vitaly78, if you have good product, you should try to make upsells and reorders, which will increase your profit in long-term.
    5% per sale in your niche - it's not really good. $20-30 per first sale - rather fair payout.
     
  17. vitaly78

    vitaly78 Newbie

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    Well, my products last about 1-1.5 years (only small amounts are used at a time). So i cant count on re-orders. Also, high volumes would mean hiring an extra person to ship it out. Also, high volumes and low margins would create problems when it comes to buying my stuff in bulk because I buy it in US, but work out of Ukraine.
     
  18. bosques

    bosques Newbie

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    You have to factor in whatever you will invest to get traffic through your link. 5% of $10 isn't the same as 5% of $1,000
    Also, Amazon commissions closer to your 5%, but they convert more frequently.
    Just make sure you don't end up spending more than what you're earning
     
  19. redarrow

    redarrow Elite Member

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    £10 to £20 per sale should be yours my opinion.
     
  20. BradBush

    BradBush Newbie

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    I have found Solwin's Affiliate Program as amazing cause it offers 50% commissions on each premium product.