When formulating a commission structure, the first step is to consider all stakeholders involved in the transaction. Even though affiliate marketing is entirely performance-based — and nary a nickel gets paid unless a transaction occurs — there are several different parties taking a cut of that sale. The affiliate gets a percentage. The affiliate network gets a percentage. And, your affiliate manager might take a percentage. What initially seemed as a no-risk marketing channel could be one of your most expensive.
Notwithstanding the foregoing, Qualifying Purchases are disqualified whenever they occur in connection with a violation of this Associates Program Fee Statement or any other terms, conditions, specifications, statements, and policies that we may issue from time to time that apply to the Associates Program, including the most up-to-date version of the Agreement (collectively, the “Program Documents”).
You can also establish commission tiers based on specific product categories. For example, you could pay 2 percent revenue share on electronics, and 10 percent on home decor, since the former carries a lower profit margin than the latter. A challenge of working with this dual structure is the technical integration. You will need to create a product feed for the affiliate network, and for each affiliate transaction that occurs you will have to submit item-level data to distinguish, say, electronics from home decor. Neither task is particularly challenging, but it does require some work.
Website conversion is also a big issue. Affiliates often determine how much effort they will devote to promoting your product based on the Earnings per Click (EPC) that the merchant generates for them. This calculation is based on their commission rate and the conversion rate of your website. If you have a website that converts really well (gets people to make the purchase), you may be able to offer lower commission.
Alright, if you go to affiliatebootcamp.com, there’s a video that talks about how to become a Clickfunnels super affiliate, and I walk through how to basically sell, because if you get 100 people to sign up for Clickfunnels, your commission on that is $4000 a month recurring, and it’s a car payment. So the whole video is how you’re going to retire as a Clickfunnels affiliate within the next 100 days. How to sell, basically get one person a day to sign up for Clickfunnels for 100 days, at that point you got a $4000 a month residual check from us, and you’ve got a car, which is amazing.
You don’t want to put in all the effort but then have a funnel that just does not convert. So I’d like to help you out with 7 examples of affiliate marketing for optimizing your funnels for higher conversions. It’s likely that you are using some of these techniques – but hopefully you will find some valuable information below that you have not heard of before and can help you really move the needle.