Do you promote this type of Affiliate Program...

Hi I am Essai Selvan. I am new to this forum but not to IM :). This is my first post and a likely to be a hottest post.

I am going to start a new membership site which charges $37 for 6 months that's $6.16 per month.

It provides members with Adsense templates, PLR Articles, Resell PLR, and MRR products, IM tools (real worthy tools even hosting), marketing courses, videos and more and more... (more means HUGE)

But now that's not the problem.

I decided to start a affiliate program for this site, the real problem is this. I am confused in what kind of affiliate program that I have to use... Please tell me your best choice.

1) One time affiliate commission of $20 more than 50%
2) Recurring commission of $20, once per 6 month
3) Recurring commission of $5, once per 6 month with 5 level deep (This you peoples already knew about it, not only for your sale the sales made by your referrals and their referrals and so on till 5 level deep)


The first one will give you $20 per sale but only once.

The second one will give you recurring commission of $20 per 6 month not every month because the membership site charge itself is as low as $6.16 per month.

The third one is recurring commission $5 per 6 month this is too low but the 5 level affiliate commission is pretty good and you can leverage your affiliate commission for every sale you make. Even 10 sale by you and 10 sale by your referrals can bring millions every year.

Which one will you prefer The 1 or 2 or 3

Or will I have to give affiliate all the three options to choose. I think I am the first one that dare to give 5 level deep affiliate commission. ;)

Please tell me you opinion...


Do i have to increase the charge of membership? (I think lower cost higher value will bring in best satisfaction )

So you are going to be charging $6.16 per month? Well to get the most affiliates I would recommend going with the onetime payout and giving the affiliate the most possible up front. But then again what happens if a customer cancels their membership after the first month? Then you’re going to be paying out $20 and only collecting $6.16? It might be a safer bet to just charge $37 one time upon sign up.

Thanks for the reply.

I got your point. But I am not going to charge the members in a monthly basis I will charge them for total 6 months like hosing companies do so no problem in paying affiliate $20.

An I am going to pay the affiliate only after the money back guarantee time.

Any Idea or tips on this ?

Good idea to wait 30 days before paying affiliates, even then you can still get burnt. I think more to the point should be relationship building with your affiliates so you get to know them so this type of think will be less of an issue.

What membership software are you going to use. I have used amember.com before and also a wordpress installation on my domain using memberlock (free at nanacast.com).

Both are good solutions, amember.com is probably better.

nanacast is great from an affiliates point of view, because it tracks by IP and cookie, so makes affiliates feel "safer" because it's more likely their commissions won't be stolen by customers who decide to save money by registering as an affiliate themselves.

Remember you need to track these affiliate sales and work out when to pay them, handle refunds, etc.

This is ok to do manually when you have a few customers, but when you have memberships with 1000 of customers (we have 2 sites like this) you have to be automated.

Even things like if a membership is cancelled (the users subscription) then the membership access should be automatically revoked, and then re-instated when payment is made, etc.

Make sure you allocate some time for this, because it's all too easy to go life and worry about the details later, but they will come back to bite you.

Also I suggest you about triple the amount of time you think you need for implementing a membership site (at least the first one). Setting it up, customizing, etc takes a lot longer, as does testing.

Good luck with it all.

Cheers



Tim

Great buddy! I will keep these points in mind.

Thanks for the reply.

Moreover I am not going to use any of the membership software for this site. I am going to use a custom designed site. I am outsourcing it to a local party for this s/w development. I am too a part of the team so that I can customize it as I want.

So keeping track will not be a problem for me and refunding it's a piece of cake. I am first going to offer a free membership and then I will allow them to upgrade. So I think I don't have to worry much about it.

Since my site is going to be automated It's easy for me to do anything with my database.

I am a tech educated guy, so all these development, testing won't be a concern. Anyway Another question, Which type of affiliate offer you like? (the option is in the first post of this thread)

Why not use existing membership software? You could use something like amember.com or a membership site based on wordpress.

I have membership sites using both, both are automatically integrated with the payment system, so when someone pays they get an account created, if they cancel their subscription or it expires without payment, then get removed, etc.

I am a former programmer, but if you are an Internet Marketer its better in my opinion to focus on Internet marketing, i.e. the things that bring you the money, and not these "building" things.

You are outsourcing though, that is wise and a good idea.

I am involved in many niches, I don't have a preference, I just go for any that take my fancy. I was involved in the recent mind movies promotion and did quite well out of that one.

In fact I turned the success on that into a caste study for our members to show them how to do it.

All my affiliate promotions is based on web 2.0 and SEO i.e. free traffic.

Good luck with your website.

Cheers



Tim

I apologize but I would not promote this.

The payout is extremely low, especially considering you can find other sites elsewhere paying more, for similar packages.

I believe you and selling your service too low. What you can probably do is sell it at $37 a month, and have a payment option to do maybe 6 months at a time for $180.

Also you are entering a competitive market where all your products would probably be resold from other memberships. Also remember for a solid continuity program you need new content every month, or people will join for 1 month, download everything, then leave.

Sylvan Noel

I think you may want to increase the payout even more so that the monthly recurring payments makes it worth promoting to get others to join and want to market your product. This is just a thought. Also offer a can't refuse guarantee.

Hi Essai ,

If you want to build a strong affiliate base, you will need to offer an attractive incentive.
I believe your commission payouts are too low, therefore, many affiliates may not give
your program a second look.

Suggestion - Increase your product price, thus increasing your affiliate payout.

I have a membership site where I sell only one product for $49.95/mo. I offer 60% recurring
commissions - Something similar would be your best solution.

All the best,
Sean

Tim Buchalka, Sylvan Noel, David Simpson, Sean Clark, Chris Douthit .... Thank you for your reply.

Sorry friends, I have been offline for some days.

But I really got some valuable reply from this thread. I already thought I have some holes in this project and I was right.

I will take every post here as a key point in molding the site.

I want another advice from you peoples, you peoples mentioned that it has a low affiliate commission, but It has another choice that is 2 or 3 tire affiliate commission.

I already seen some IM gurus are using 2 to 5 tire affiliate commission. If I offer that level of affiliate commission would that be a acceptable for you peoples and other affiliates?

Even a low commission payouts will be a big paycheck in case of 5 tire affiliate commission.

How about that?

Or peoples only care about Onetime 60% commission.

If I AM WRONG please correct me. :D

I am looking forward for your reply my friends....

I think you are going about this wrong. I’m not an expert, but just think about this from and affiliate standpoint. Just check out the screen shot from this week. Also you can see more of this in my prelaunch video over at. http://internetsoftwareriches.com


http://internetsoftwareriches.com/Capture.JPG

You need an offer that is attractive to JV’s and affiliates because every email they send has an opportunity cost. If they promote you then they gave up the chance to promote somebody else. Plus you can’t just beat your list with offers every week because you will burn it out. So you have to pick your offers!

Some of the things that I look for in and affiliate offer.

The front end cost has to be at least $77 with a 75% payout or over $100 with a 50% payout. I will not email for anything that has a $4.97 trial offer because you end up with a lot of tire kickers.

It has to have an OTO with a reoccurring payout and have a good stick rate or a high dollar payout.

It has to be through Clickbank or I have to know you or Mike has to have you listed on the launch board. I trust Mike’s judgment.

If you have a squeeze page in place I’m just going to stuff the cookie and bypass it and go straight to your sales page.

I like to see the VSA exit popup. Dave has created a real winner with his software.

It has to have a low refund rate and a strong gravity.

I don’t care about 2nd tier or anything like that. I just want my money now. The truth is most peopling clear there cookies enough that I just don’t see a big advantage to it. It’s nice but just give me a larger chunk up front.

The problem with 2nd tier is you are hoping that somebody else will take action so you can get paid.

Remember the truth is that the affiliate and JV’s are doing you a favor anytime they email anything for anybody.

As a product creator I need them far more then they will ever need me!

Thanks
Charles Kirkland

P.S. The screen shot above is about returning the love from one affiliate to another. I will only email back for people who email strong for me.

Thanks for your reply charleskirkland,

Quote:

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charleskirkland,
I don’t care about 2nd tier or anything like that. I just want my money now.

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This sounds reasonable. ::)

Any other members have any thoughts about Multi Tier Affiliate commission.