Affiliate Program Commission RatesPartner Program Commission Records
Associate Marketing: Setting up a commission structure
Let's assume, for example, that you are paying different commission rates for different types of goods. You do this with the intention of motivating partners to advertise your higher margins on your own brands. In my own personal opinion, however, this could lead to the affiliate being annoyed by the lower commission rates.
They can still reach the same goal and prevent affiliate envy by flattening the commission across all types of affiliates, and then offering higher margins on your higher margins related incentives and promotional activities. As an example, you can give a $50 August monthly incentive if you reach a specific revenue goal for a specific type of item.
Or, maybe you could raise the commission for that particular type of products for a certain amount of timeframe. Adopting this mindset will create less mess about your commissions and serve as a way to keep your affilates committed and active.
In the ideal case, you would fix your commission at a reasonable level so that you never have to lower it. Whatever the cause, reducing a commission fee leads to frustrated affilates. It is always enticing to start a new affiliate program with a high commission ratio to draw as many members as possible.
But if you need to lower the commission a few month later, you will probably see a decrease in affiliate activities. Instead, start with your default commission instead, but perform a temporary action that will reward or reward the additional commission on the basis of your work. Whose commission is it? A further commission record to be taken into account is the commission record hierarchy on the basis of attributes.
You perform a trademark and voucher lookup.
You click through the voucher page to gain entry to the program and continue your purchases on your website.
Every point represented a different affiliate interactions within a unique deal. Probably the voucher page played a part in getting the customer to close the deal. But does the site earn the full commission? How about if the user had initially come to your website on the basis of a rating they saw on a blogs?
Use of an attribution-based commission structures is one way of tackling this problem. Affiliate networking offers this possibility.
It is also possible to have the trading system checked for a previous partner who is to earn commission on the sales, and you can either select whether this partner receives the full commission or part of it. It is a somewhat complicated commission system that is definitely valuable to communicate with your partners. Often, your content-based partners will be grateful because it helps safeguard their recommendations.
However, it is also important to remember that not all trades controlled by a voucher or dealing site do so. A lot of voucher or deals websites have established a loyal as well as energetic following by offering coursed deals. I' ve seen programmes enjoying a new client relationship of 20 to 30 per cent of dealsites.
While this will differ by merchant, the point is that not every voucher transaction is inappropriate. Ultimately, it is possible to set up a commission setup in which you are paying your affilates on the basis of new or current clients. New customer disposals would get a higher commission set, while current customer disposals would get a lower commission set.
Disadvantage of this commission system is that there is no transparancy for the affiliate.
Affiliates have no way of telling whether or not their readers are new or current to you. So is it really rewarding to be paying a higher commission for new clients because you know it's not to motivate the affiliate to advertise their product differently?
Each affiliate program is different. Largest error I see, however, is that merchants set commission rates exclusively on margin basis without taking into consideration the effect that the commission architecture will have on partners' perceptions of the program. The Commission's organisational framework should be equitable, easily understandable and comprehensible, and well thought out.