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How are commissions computed?

jaydenrmaharaj
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Joined: 31 Jan 17
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How are commissions computed?

Hey everyone! Just curious, for an online program around the $200 price range, what % would you expect to receive as a commission? Thanks in advance!
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maryt
Posts: 2680
Joined: 16 Apr 12
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Hi Jayden,

The commission will depend on the affiliate vendor's or affiliate network's percentage of payout. But, for a complete guide on how commissions are computed, you may refer to Clickbank's FAQ page here. The information on Clickbank is pretty much the same for all.
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jaydenrmaharaj
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Joined: 31 Jan 17
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Hi Mary,

Thanks for your response. I am actually a vendor of a digital product. I was just wondering what % an affiliate would expect to receive from a $200 product. I am thinking of having a tiered percentage system, dependent on sales. For affiliates (specifically in the parenting industry), what do you see as a fair commission for a $200 information product?
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maryt
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Joined: 16 Apr 12
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That will depend on your niche/product. To give you an idea, you can look for similar products and check out the commissions for those products. This will also give you an insight on how much commission you can give to affiliate marketers. Of course the higher the payout is, the more enticing it is to promote the product. But this is not the case all the time. You need to really provide a product that converts well so you can get a lot of marketers promoting your product.
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cecille.l
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Joined: 25 Feb 11
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jaydenrmaharaj wrote:Hi Mary,

Thanks for your response. I am actually a vendor of a digital product. I was just wondering what % an affiliate would expect to receive from a $200 product. I am thinking of having a tiered percentage system, dependent on sales. For affiliates (specifically in the parenting industry), what do you see as a fair commission for a $200 information product?

A tiered percentage system sounds good, but you also have to consider a product's ability to convert. Affiliates may be more inclined to promote a product with a lower commission if it converts well. That would mean still mean bigger earnings over a product with higher commission but less conversion.

I suggest you check out the products within your niche and see how much affiliate commission they offer versus the price of the product. You can then gauge the range of commissions for products in that niche.

Hope that helps. All the best!
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Cecille


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