Since new customers are valuable, it makes sense to offer incentives to your affiliate partners to generate fresh traffic and new customers. You may already have new customer marketing incentives in place — perhaps a first purchase discount or another special offer. The same reason you offer those incentives is why you should pay affiliates more for generating new customers. No matter where the incentive is paid — i.e., to the customer or to the affiliate — the result is the same. You’re paying a bit extra to acquire that new customer because you know your ultimate payback is in the customer’s lifetime value.
“I literally screamed so loud that I shocked even myself! … It is hard to describe the feeling one gets when one makes the first money from blogging. … I have felt that feeling several times since then, but nothing compares to the first time when I actually did make some money from my blog. And this sale came less than one year after starting my blog!”
Hi Jamie, awesome content that is very helpful esp with the resources, links and the rich discussions. Want to start e-commerce and blog for money…selling others products, want to go full on with this, tired of the daily routine crunch working for others. I live in a developing country (PNG) that has high internet costs (work still in progress with getting rates down…) so will see how I go with your posts. Any advise? Don’t have a website yet, have to build one I guess….
It’s also important to research their payout structure. Not all payouts are the same and tier affiliate marketing often offer different payouts. Some might pay you on the first offer but pay you nothing on any upsells. Ideally, you should be paid for every transaction. In doing your research, you’ll find out which affiliate payout structures are the most profitable.