Why More Marketers Are Offering 100% Commissions
Have you ever looked around the products to promote and wondered why (or how) a seller is offering 100% commissions? It makes many newcomers to online marketing scratch their heads in bewilderment about how the money is made if theyíre giving away all of the profits.
You want to see the offers from both sides of the coin when you make a decision to get involved in 100% commission launches. Letís take the side of the seller first. The seller is going to create a no brainer low cost offer for the front end.
These are typically $7 products that they allow affiliates to promote for 100% commission. They do make a small amount for their own direct sales, too. What offsets this loss is the funnel on the backend.
Once a buyer purchases the front end product for a small amount, theyíre presented with anywhere from one to seven or more one time offers or upsells and downsells. This is where the product creator makes their fortune.
One time offers range from $17 to $97 or more, and many consumers grab up several of them as they move from hitting the buy button to the checkout screen. So in the end, the $7 front end payment is a small price to pay for the subsequent sale.
The affiliates arenít given 100% of the funnel sales ñ only the front end. For the upsells, theyíre given 50% commission in most cases, so they still make profits from their promotions and everyone wins.
This is an attractive offer for the seller to be able to promote to the JV partners and affiliates. The danger for a seller would be in creating a funnel that didnít convert well, so youíd need to make sure you go above and beyond with your one time offers to make sure you profit from your efforts.
From an affiliateís perspective, the 100% commission is enticing because theyíre getting the full sale plus additional backend funnel commissions. The one area where you want to be careful as an affiliate is in who you send traffic to.
Keep in mind that your list trusts and respects you. You donít want to send them to someoneís product if you feel the marketer lacks the ethics you feel are important. And thereís another reason to be cautious about promoting too many people.
This marketer, once the sale is complete, will now have your customer on his list. That means youíre now sharing promo opportunities from that point on ñ competing with the very person whose products you sent you subscribers to. It dilutes your ability to make conversions.