This Is Why Your Affiliate Commissions Stink

So your affiliate commissions are pathetic. You are now wondering why even with truckloads of visitors to your site, the chunks of money you were imagining, are not coming to pass.

If that’s the case, something might be wrong with your choice of affiliate programs.

So here below are some of the things you may consider when looking for an affiliate program:

Recurring Commissions

If your niche has an affiliate program with recurring commissions then go for it. One niche I could think right now is web hosting.

It’s one great niche for recurring commissions. Yes, It’s a mess to move your site frequently once you’ve set your site to a hosting company. Most likely the site stays for a while.

When someone signs up through your link, expect at least six to eight months minimum he stays. You get a commission every month as long as he stays with the web hosting company.

My first web hosting company charges $24.95 a month. This hosting company has an affiliate program. It gave $10 for every sign ups.

And that’s every month as long as the signee stays. I joined. Days later someone signed up. I got $10. I got excited. My first commission.

Another one signed and another one. There were 3 of them and my monthly hosting was practically paid. Great.

Now how about referring 10 people? That’s $100 in passive income.

Another good one for recurring commissions are membership sites. Membership sites for ebooks, audio, video, services, etc. are sprouting all over.

Some membership sites charge $19.95, $29.95 per month or even $49. Refer visitors to these sites and you get a cut of the monthly payments.

Cool! Work once and get paid many times over.

Autoresponder for your email services is also a good recurring income source. I personally use getresponse as my autoresponder.

If you sign up thru this link then I get a commission.

I had before an email service which I was paying $17.95 a month. It offered a 2-tier commission system. Which means I get paid 30% or $5.38 on direct referrals and another 10% on sub-affiliate referrals.

I get to collect my commissions for as long as the person referred continues to use the service.

Well, think of referring 10 people. How about 20 people? That’s $359 a moth. The best part is it’s a passive income.

Your money wheel is running even while you’re in Tahiti, sipping the cold Seven Seas Martini under the shade of a giant parasol.

Amount of commission

If you are subscribed to a bunch of newsletters, you’ll notice promotions of high priced products.

Why? They get fat commissions. These newsletters promote expensive products.

Commissions for digital products range between 40% to 60%. There are instances where they hit 75%. Yes, digital products costs almost nothing to reproduce.

Costs of downloading 1000 copies of an ebook is almost the same as downloading 10 copies. What with the bandwidth costs going down.

Let’s have an example in computing your commissions.

You joined and affiliate program which sells a product for $27 with 50% commission. If 100 of your visitors follow the link of that $27 product and 5 of them buy, you get a total of $67.50 straight into your pocket.

What if, instead of promoting the $27 product, you pick a $97 item to endorse. Even if you convert only 3 buyers instead of 5 your total commission would still be a lot higher than the previous product. In fact, it would be $145.50.

I personally would not promote if the commission is below $15. The effort involved is practically the same both for the high end and the low end product.

Popularity of the product

Admit it. You too would like to be with the winners. With the popular products. With what’s in vogue.

Did you notice when you go window shopping, you’re drawn to stores or boutiques where a lot of people flock?

Curiosity maybe. But the popularity or the crowd did help pull your attention. Buyers are attracted to popular products. Sort of social proof.

At the back of their minds they could be thinking that the product is good because many people are buying. What already sells well could still sell well, until it reaches some sort of saturation point.

Chris Anderson, editor-in-chief of Wired Magazine, and author of the book “The Long Tail” called this the “hit mentality. People are predisposed to buying the bestsellers, the top 100, the top hits. Why reinvent the wheel?

Sell what people want to buy. If you intend to sell Clickbank products, go to Clickbank marketplace and browse for items you want to promote. You can sort them according to popularity.

As I write this, the most popular product under the Health & Fitness category is the one sold by FatLoss4Idiots.

Additional info provided by ClickBank says that the top affiliate of this product banked $100,000 in just 3 months! Amazing!

Another source of information to keep an eye on what product categories are popular is by going to amazon.com. Today, the “Harry Potter and the Deathly Hallows? is the most popular book.

The third most popular however, is the book titled “21 Pound in 21 Days: The Martha’s Vineyard Diet Detox?. The health and fitness niche is really a good moneymaker!

What type of products are people buying? What are the top hits? Sell it to them.

How long does the cookie stay

A cookie is the equivalent of a footprint or thumbprint. When the person you referred visits the site you are promoting, a cookie with your affiliate ID is planted in his computer.

He may not buy on his first visit, but you still get the commission even if he buys 3 weeks or 3 months later, depending of the cookie’s duration.

Unless, of course, he cleans up the cookies. Most affiliate programs have their cookies set at 30 to 45 days. This would be okay for lower priced items ($20-$50).

But for higher priced items, the longer duration cookie should be preferred. Decision takes a little longer for products priced at say $300-$500.

I usually sign-up with affiliate programs if the cookie stays 6 months to 1 year. You just don’t know when a visitor buys, so the longer the cookie stays the better for the affiliate marketer.