Affiliate Marketing Commission RatesMarketing Affiliate Commissions Tariffs
Calculating the Affiliate Commission Rate
You have therefore chosen to launch an affiliate programme. The very first thing you need to address is where you can specify the commission rates of the programme. And in such cases, you really have to be as liberal as possible towards your partners.
I have seen that in most cases it is better for traders to go with about 50-75% of the net income margins and at the same time determine the affiliate commission you want to be paid. When your computations show that the limit you can buy to remunerate your partners is 15% of every sales they make to you, do not put the basic commission at 15%.
Let the maximum possible commission for personal deals. Personal deals are basically specific commission rates quoted to a small number of affilates - those who already have the amount of revenue in which you are interested (or are already encouraging your immediate competitors) and are therefore able to generate a significant amount of revenue and revenue.
Again, let me emphasize that you want to keep the maximal possible commission amount for these personal offerings. Also, I mention performance-related commission rises and promotion. In order to manage your affiliate programme as well as possible, you will be conducting various promotional activities (the third part of this guide will help you), and you will sometimes need some space to increase this commission rate levels or provide various bonus options.
My recommendation to my customers is to fix the standard commission at at least 20% below the commission they are willing to withdraw. However, some premium members will not consider a 20% raise as significant and will only consider 50% or even 100% commission growth. I have seen in my office that the basic commission is up to 80% higher (to interest a powerful affiliate).
After talking about commission increase, it is important to note commission loss as well - one of the worst culprits of affiliate programme stewardship. Never, never, never let the affiliate commission fall (unless you want to burry your affiliate programme with it)!