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Pitfalls With Offering Affiliate Or Referral Commissions.

Started by tommr, Jan 13 2012 12:44 PM

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5 replies to this topic

#1 tommr

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Posted 13 January 2012 - 12:44 PM

I was thinking about joining a few affiliate programs so we could offer a commission on sales of our favors.
There are a number of sites who offer targeted programs where we might fit in.
My shopping cart will work with the code.

I am trying to read up on the pros and cons and was wondering if anyone has first hand experience with offering commission sales.

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#2 cre8pc

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Posted 16 January 2012 - 11:01 AM

I'm not sure you need a shopping cart for affiliate sales, since most of them offer their own tracking code. There are a lot of affiliate sites and sites that offer affiliates to sell their products. Your best chances of earning any revenue are to be sure the products are something your target market is interested in. Some offer good comissions and some don't.

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#3 iamlost

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Posted 16 January 2012 - 11:43 AM

Remember that putting a network in the middle will siphon off 20-80% of the revenue. If your products are likely to be sufficiently popular with sufficient margin you may well do better approaching sites directly with an aff offer. Of course that would require you to do more work in return for more return...

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#4 Dr.Marie

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Posted 16 January 2012 - 08:24 PM

My experience with affiliate sales was not a positive one. I offered a large commission. I got lots of clicks but few sales and didn't make any money. In fact I lost money by the time my fees were paid. Now, to be fair, perhaps it was my product that was lacking.

I think affiliate sales work when you have a product that is really in demand and you already have a good conversion rate.

But that's just one (non-experienced) opinion.

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#5 EGOL

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Posted 16 January 2012 - 08:58 PM

I have a site that has done affiliate sales for a small number of products for about ten years. Since shortly after launching my site it has outranked the affiliate program site. I am currently at #1 and #2 for the root keywords of their product. The folks at the affiliate program are OK with this since they are getting all of the sales from my site. But they could look at it as a negative.

Just keep in mind if you invite affiliates into your space it could become a lot more competitive. But, I know that favors already has compeition.