Higher Commission Is Not Always Better


I have seen it a million times, especially from newer affiliates. They find two similar affiliate programs and immediately assume that the one that pays the highest commission is automatically the better affiliate program... not true! As an affiliate you need to look beyond the commission and evaluate the entire program. Yes, high commission are always nice to have but there are some things to look for that can make a high commission affiliate program practically worthless and a waste of your valuable time.

The first thing that you should look at is see how much the merchants are charging for their products. Merchants that pay a high commission is usually passing it off in the product prices. By boosting their prices up they make up for paying their affiliates high commissions by trying to get the customers to pay the bill. If the price is to high the customer will leave the merchants site and search for another merchant with lower prices. So you can promote the higher commission merchant to your hearts content. But if the prices are just to high for the customers you are simply wasting your time and effort on a dead cause.

Now, if you go with the merchant that pays a slightly less commission but has much lower prices then the customer is going to buy from them instead of the other merchant, therefore, giving you more conversions which will make you alot more money in the long run.

Chet Brzezinski has been in the affiliate marketing and affiliate management industry since 1997. He owns two affiliate marketing related sites. One that offers affiliate program management & consulting services and the other affiliate program reviews, tips and resources.







Related News



Cablevision Systems Corporation Q3 2008 Earnings Call Transcript - Seeking Alpha

Cablevision Systems Corporation Q3 2008 Earnings Call Transcript
Seeking Alpha, NY -Nov 6, 2008
The third quarter results were principally driven by higher revenue at the networks of $10 million which was principally increased affiliate revenue and ...
Cablevision Systems Corporation Reports Third Quarter 2008 ResultsStreetInsider.com (subscription)
all 3 news articles

Cleco Corp. Posts 2008 Third-Quarter Net Income of $37.1 Million - CNNMoney.com

Cleco Corp. Posts 2008 Third-Quarter Net Income of $37.1 Million
CNNMoney.com -Nov 5, 2008
30, 2008 2007 ----------- ----------- Operating revenue Electric operations $ 333936 $ 300862 Other operations 7004 9238 Affiliate revenue 2735 1591 ...

Is cable the new home of champions? - Sports Business Journal (subscription)

Sports Business Journal (subscription)

Is cable the new home of champions?
Sports Business Journal (subscription), NC -Nov 17, 2008
The fourth quarter ad market has been soft across all sports, putting greater importance on the affiliate revenue that cable networks collect. ...

Turner Nets Defy Soft Market - Adweek

Ottawa Citizen

Turner Nets Defy Soft Market
Adweek, NY -Nov 6, 2008
Along with the advertising gains, network revenue was goosed by 10 percent year-to-year growth in subscription/affiliate revenue. The Turner nets now appear ...
Time Warner Q3 2008 earnings transcriptBloggingStocks
all 507 news articles

Cablevision Systems Corporation Reports Third Quarter 2008 Results - MarketWatch

Cablevision Systems Corporation Reports Third Quarter 2008 Results
MarketWatch -Nov 6, 2008
... all compared to September 2007 -- A 9.3% increase in affiliate revenue compared to the prior year period -- A 19.3% increase in operating costs compared ...

Viacom’s Profit Fell 37% on Slower Ad Sales - New York Times

Spong

Viacom’s Profit Fell 37% on Slower Ad Sales
New York Times, United States -Nov 3, 2008
Cable and satellite affiliate revenue grew 12 percent, to $660 million. Ancillary revenue surged 36 percent, to $313 million, driven by sales of its video ...
Viacom earnings drop 37 percent; ad slump hurtsguardian.co.uk
all 205 news articles

Moonves: US economy close to recession - Hollywood Reporter

Hollywood Reporter

Moonves: US economy close to recession
Hollywood Reporter, United States -Oct 30, 2008
In the core TV division, revenue rose 2% to $2.08 billion because of higher license fees, home entertainment and affiliate revenue partially offset by ad ...

Cookstr Helps You Find Recipes From People Who Know Their Onions - TechCrunch

TechCrunch

Cookstr Helps You Find Recipes From People Who Know Their Onions
TechCrunch, CA -Nov 18, 2008
... NY Times article on the startup points out, they’ll also be collecting affiliate revenue when books are sold on e-commerce sites via their website. ...


News Corp. shares plunge on outlook - Crain's New York Business

News Corp. shares plunge on outlook
Crain's New York Business, NY -Nov 7, 2008
But cable network programming revenue rose 19% to $1.3 billion, on advertising and affiliate revenue gains at Fox News Channel, FX and the Big Ten Network. ...

The Walt Disney Company Reports Earnings for Fiscal Year 2008 - MarketWatch

Ottawa Citizen

The Walt Disney Company Reports Earnings for Fiscal Year 2008
MarketWatch -Nov 6, 2008
The increase in affiliate revenue was due to contractual rate increases and subscriber growth. Increased advertising revenues reflected improved rates and ...
Walt Disney F4Q08 (Qtr End 9/27/08) Earnings Call TranscriptSeeking Alpha
all 295 news articles