Affiliate commissions are an important part of email list running your affiliate program, but how do you decide on the right commission rate? Looking at other affiliate programs, you might wonder how they can afford to offer higher rates, or conversely, how they can get so many affiliates on board with lower rates. If the seemingly endless possibilities are making your head spin, don't worry — there are specific guidelines you can use to make this decision, so it feels less like guesswork and more like educated guesswork.
In this article, we discuss some of the key factors to consider so you can set the right commission rate(s) for your affiliate program! The first step is to understand your target audience. If you want to find that sweet spot that will attract quality affiliates and email list sales, you'll need to know who you're dealing with. Which affiliates are the best fit for your program? What type of audience do they have access to and what are they buying? Are they budget shoppers or are they looking for high-end products? Your target audience can tell you a lot about the types of affiliates that will be most effective for your program, and it also tells you about your commission rates!
The prices (and costs) of your products are an email list important factor if your products are more expensive, better quality, life changing, money saving or high value, you may be able to get away with it. shoot with lower commission rates. This may be because the higher price commission percentages result in a higher amount per sale, or because the products are in such high demand that the number of sales adds up nicely for your affiliates. When it comes to digital products, commission rates tend to be higher in general – often 50% or more, some as high as 70-80%, or even 100% in the case of incentives.