Understanding the 4 Main Types of Affiliate Commissions
Starting out as an affiliate and want to know more about the affiliate commissions that you can get? Then read on as this article will take you through the 4 main types.
Before you even get started, consider the types of products you want to promote. There are tons of niches out there so take time to think about what you feel would be an excellent choice for your first affiliate marketing attempt.
Once you have made your decision, you are then free to consider one of the following commission structures:
Low Ticket Offers
Low-cost products and services are a good option for those just starting out in affiliate marketing. This is mainly because those accepting affiliates for their products rarely ask too much of you. The entry barrier is much lower compared to other types of affiliate commissions.
You should not turn your nose up low ticket offers either, because although the commissions are small because of lower cost products, there is still some good money to be made. For one, most companies offering low ticket offers will have multiple products that you can market. Secondly, a lower price means more people might be willing to take a chance on the products.
As said, a great starting point to get some experience before you move into other affiliate commission types.
High Ticket Offers
It is difficult to put a factual definition on what the minimum price should be for an affiliate product to be classed as a high-ticket offer. This will differ from person to person, but you should be classing anything being sold for $500 or more as a high-ticket offer.
As prices are higher than lower ticket offers, you are going to make more in commission per sale.
The issue with high ticket offers is that they are not as easy to sell. Convincing somebody to part with $5 is a lot easier than $500, as you might imagine. This is why the entry barrier is higher too, companies wanting affiliates to help them sell their products want experience and success on your CV.
You can usually find different offers in different currencies depending on the country you are in. Check out Securicritic which gives you apps that are useful for low and high ticket offer research so you get your strategy correct in the locations you target.
Recurring Payment Offers
Some of the most popular offer types are recurring payment offers. With these, you not only get a commission for the initial sale but are likely to earn for every future payment made via a subscription for the product/service too.
An example would be if you were an affiliate for a VPN provider. If a subscriber signs up through your affiliate website, you get a commission on each payment made to them. This is weekly/monthly money until the customer stops subscribing. Find an excellent product and you can make good money this way.
Physical offers are for products that you can physically hold in your hand. Think clothing, books, gadgets, and CD’s. The issue with this type of commission is that it is usually quite low. This is down to companies having far more overheads to deal with. These products have to be stored somewhere and there has to be a physical stock available for supply. Not only that, each sale involves shipping and the fees that come along with it.
Which Suits You?
As you can see, there are several commissions structures being offered by companies these days. They can all work, but each has their own pros and cons. We suggest thinking long and hard about which structure to go for, but if starting out, stay away from high ticket offers for now. They can come once you have some experience and success in the bank.