The Truth About Affiliate Commissions

 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"
Get a Free 5 Day Email Course
http://www.1sthomebasedbusiness.com

 David McKenzie

More Articles 

Quality Affiliate Programs, Anyone? - Dom Vonarburg
More and more webmasters and website owners are using affiliate programs as a way to earn extra income online. However, not all affiliate programs are created equal. Some will send you nice checks every month where others will essentially rob you....

Affiliate Marketing for Your Website - Lee Asher
One way to get a good income stream without doing anything that looks very much like advertising is to add affiliate links to your content. They're just links, they don't annoy anyone, and you can choose where you do and don't want to put them....

Every Affiliate Marketing Opportunity At Your Fingertips - Paul Colligan
Making the decision to start up a web-based business is one of the best ways to take your financial future into your own hands. The dream of starting your own business is finally coming true and when you learn to take full advantage of your website...

How To Boost Affiliate Profits Using Secret Domain Tricks - David Lovelace
Want to increase your affiliate link click-through rates and profits? Then you'll need to learn how to master your domain. One of my favorite episodes of Seinfeld was the "master of your domain" show where the gang bet each other as to who...

Should Affiliates Really Use Blogging and Pinging To Get Indexed? - Anik Singal
Copyright 2005 Kurma Group There seems to be a huge craze lately with everyone trying to blog and ping to get their websites indexed into the search engines. Although this can be a great tool, all marketers should first understand exactly what...

"Take those Affiliate Links off your Home Page!" - David McKenzie
Do not put the links of your affiliate programs on your home page. Why? Well you have slaved hard to get your home page ranked at spot number 5 on one of the major search engines for a popular term. Your visitor arrives at your site which loads...

Protecting Yourself From Affiliate Link Thieves - Stephani Richardson
So, you have worked really hard to build a fabulous affiliate site. You took the time to add your keywords and relevant information about the products. Your pages load quickly, and your site is even listed in the search engines for specified terms....

:: How To Succeed With An Affiliate Program - Michel Richer
:: How To Succeed With An Affiliate Program by: Michel Richer Affiliate Program have exploded on the internet. Thousand of people join them every day. Amazon.com is probably the best example of such phenomenal success. If the affiliate...

How to Evaluate an Affiliate Program - Sanjay Johari
There are thousands of affiliate programs offering wide range of benefits to their affiliates. However, many of these programs and the claims they make are not to be trusted. Good affiliate programs provide tremendous earning opportunities, but they...

Affiliates Go To School! - Ray Burton
It has been said that only 2% of affiliate marketers ever make any “real” money from their efforts. The rest struggle and flounder as they see most of their efforts fail. Rather like master archers hitting the bull’s-eye each time while the rest...