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Factors That Affect Your Affiliate Marketing Commissions

Aug 22, 2008
Your affiliate marketing success will largely depend on your statistical research, which may come as a surprise. The review of your research will give you an indication of the chances of the program meeting your financial goals. Even more so, the affiliate marketing statistics can even project "HOW" much your bank account can grow.

Statistics will also help you determine how you can win in terms of affiliate marketing commissions, without which your program will be inadequate and your efforts useless. You'll also need to learn how to 'read' the numbers so you can maintain a sufficient balance in the factors that affect your future income.

Increasing your affiliate marketing commissions

Commissions are paid to the salesmen based on the generation of sales. Affiliate marketers are also commission based salesmen, as there pay is directly connected to the amount of referrals that they generate by his leads that become sales.

The following items can have a very important influence how much you generate in commissions, in any given affiliate marketing program. Such as:

The selection of an affiliate marketing program

Not every affiliate marketing program pays the same amount of commissions to its affiliates. Affiliates will have a choice of programs offering a low pay scale ranging from about 5 to 15 percent per sale or performance while others may pay as much as 60 to 75 percent, depending on the type of products or services being offered.

All things being equal, choosing the program that pays a higher commission will result to higher sales.

Which path to choose? The choice of affiliate marketing programs that pay higher commission is not very difficult when you have a niche or a significant following in your area. When your selected market is elusive... then you must experiment with the use various selections of programs that will produce the type of "quit your job" income.

By maximizing your ability and opportunity and building your reputation in the process, you will be able to earn a decent income and solidify your presence at the same time.

The various earning opportunities which an affiliate program allows effects the increase or decrease in the pay for your efforts. An additional program, which is called two-tier provides two separate revenues. You receive one income from the earned income from the sales or services you generated, called commissions and the second from the recruitment of a new affiliate. This revenue can be just one time (flat rate) or generated overtime as long a new recruit stays a revenue producing member.

Not all, but some affiliate marketing programs offer recurring commissions where their recruit generates a commission to the affiliate when they renew their team affiliation. This kind of program allows you to receive a stream of income as long as the recruit still uses the product or service.

One must weigh carefully the different benefits of the various affiliate marketing programs in consideration of the potential future income that you can expect. In affiliate programs the amount of commissions varies and that directly effects your potential income.

The Product

The type of product or services that your offer in affiliate marketing will directly effect your commissions. If, unfortunately, your services or product is in a category that is already very popular, then your ability to penetrate that market will not be easy... But on the other side... the popularity of your item can produce a lot of sales when you have a consistent and hungry market .

Find out how you can perform based on the statistics offered by the affiliate marketing program you wish to join. ClickBank, for example, allows you to view a product's potential based on its past performance.

The market

Affiliate marketing commissions rely heavily on how effective an affiliate's sales and marketing strategies are. In many ways, they will also depend on the relative popularity of the affiliate and on the type of market he chooses to sell to. A small but highly targeted market is more likely to bring in higher commissions for an affiliate while a fairly large but generic market may not produce the same results.

The conversion period

Once you have selected the best and most profitable affiliate marketing program in terms of commissions, your next concern would be how to shorten the conversion period for your customers.

The conversion period refers to the time from which you bring in your lead until the time that he performs a desired action. This action can vary ? a lead may subscribe to a service, purchase a product, participate in an online poll or become a recruit. Since the incentive that drives leads to perform a specific action can vary, conversion periods can last anywhere from a very short 24 hours to about 30 to 60 days.

The affiliates purpose is to encourage your lead to make short the conversion period and also increasing your affiliate marketing commissions.
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