The Truth About Affiliate Commissions

David McKenzie How can you boost your affiliate commissions?

Scenario: You participate in one or many affiliate programs.
You get plenty of hits. Your conversion ratio is about 2%
(which is good) and yet you're only making $42.80 per month.
It's nothing to shout about.

Consider this: If you put just as much time and effort into
marketing each affiliate program, then receiving affiliate
commissions of $5 per order is much better than receiving
affiliate commissions of $1 per order. It costs you just as
much in your own time yet you make 5 times as much.

Why join affiliate programs that sell products or services with
such low affiliate commissions? For a reasonable return you
will need extremely high volume. How about earning $65 per
sale? Or perhaps even $100 per sale?

I hear you say that it is difficult to get many sales of this
size - but even if you only got 5 sales per month from a $100
affiliate commission that would be $6,000 per year from just
one program. Compare that to the $1 commission per affiliate
program. You would have to sell 500 items per month and 6,000
per year. On a sales ratio of 2% this would mean you would have
to get 300,000 visitors per annum or 25,000 visitors per month.
That is very hard!

With the $100 product you need only 3,000 visitors per annum or
250 visitors per month.

Maybe you might not get 60 sales out of 3,000 visitors. Lets
say you still get 60 sales but out of 30,000 visitors. You
still have 1/10th of the number of visitors for the same amount
of affiliate commissions per annum of $6,000. And we all know
how difficult it can be to get traffic.

Sell products or services with higher value affiliate
commissions and you need less traffic. Now I like it when
someone tells me I need LESS traffic!

About the Author

David McKenzie is the author of a new e-book titled "The Facts
You Should Know About Affiliate Programs"
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