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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.


MORE RESOURCES:

Generating Affiliate Revenue with your Payment Provider
SMEweb, UK - 1 hour ago
When affiliate programs emerged over a decade ago, cyberspace was full of residents (merchants and their affiliates) who were delighted by the quick and ...


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 Transcript Seeking Alpha
all 295 news articles


Sports Business Journal (subscription)

Execs agree deal’sa milestone
Sports Business Journal (subscription), NC - Nov 24, 2008
ESPN, which gets about $4 per subscriber per month from cable and satellite operators, pulls in more from affiliate revenue than other national cable ...


Exclaim!

Atlantic Becomes First Major To Sell More Digital Units Than CDs
Exclaim!, Canada - Nov 26, 2008
... that sales from digital products, such as iTunes downloads and ringtones, account for 51 percent of the Warner affiliate's revenue in the last quarter. ...


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 Results StreetInsider.com (subscription)
all 3 news articles


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 ...


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. ...


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 transcript BloggingStocks
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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 ...


News Corp Q1 net income drops 30%
Indiantelevision.com, India - Nov 7, 2008
Also, cable network programming revenue rose 19 per cent to $1.3 billion, on advertising and affiliate revenue gains at Fox News Channel, FX and the Big Ten ...

Affiliate-Revenue - Google News

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