Whether you’re new to affiliate marketing or an experienced master, trying to find new, trustworthy programs to work with can be a challenging task. Fortunately, there are a few key pieces of affiliate revenue information you should look for whenever considering a new program to promote.
Next time you’re scouring Clickbank or LinkShare trying to find solid products, don’t just look at the price. In fact, the actual sell price of a product is usually the last thing on my mind. These three metrics are far more important than price for any serious internet marketer.
After price, looking at a product’s conversion rate is easily the most common instinct for many marketers, but a conversion percentage by itself isn’t always what it seems to be. Many of the conversion rates provided assume that the customer is already a warm lead.
If the number sounds too good to be true, there’s a good chance it might be. To get a more realistic number, factor in what type of traffic you’ll be driving to that site. If the link comes from a product review page on your site, your lead is more likely to be qualified than if you link from a passing mention of the product.
When joining a new program, consider where and how you’ll be driving traffic to that program to determine if the conversion rate is realistic for you.
The re-sell, or up-sell rate of a product helps you determine what percentage of your sales will lead to one time versus recurring revenue. This factor is one reason why an initial sale value is unhelpful. Many subscription based programs offer cheap or free options to get a customer in the door, and work to convert the customer to a higher sale later.
Finding programs with high resell rates helps you build your own affiliate revenue stream faster, as it lets every month build upon the last, without as high a burden to constantly generate new leads (though hopefully this will happen too!).
As an example, compare a big name retailer to niche subscription program. The brand name retailer or service provider (like Amazon, or Target, or Orbitz) is far less likely to provide you as an affiliate with on-going conversion opportunities. Most sites will apply your link only to purchases made within a day or two of generating the customer.
Subscription services, such as SaaS services or multi-level courses tend to have high retention rates, and the benefit of getting a customer in the door can often payout for several months or even years.
From a payment perspective, you want to consider the payment threshold a program has, the time-delay (if any) in releasing that payment, and any fees involved.
If you have a high traffic site or if you use any of the big affiliate networks, like Clickbank or LinkShare, the payment threshold is not as big of an issue, but if you’re driving traffic to a number of smaller affiliate programs, this barrier can really start to add up. There’s nothing worse than having earnings “in the bank” but unable to cash them out.
Additionally, even if there’s a low payment threshold, sometimes program “check fees” can really cut into your earnings. Ideally there are no fees involved, but if there are, consider whether they represent a percentage, a flat-rate, or some sort of combination based on the amount of the withdrawal. Even low processing fees can add up when you consider you have multiple programs you’re working with.
Finally, be sure to consider the time-delay in releasing your payments. Some programs offer their customers a money back guarantee, which can be a sign that they might not release your payment until after this guarantee has expired. Anything under 30 days is acceptable, but if the delay is longer than that, you may want to reconsider incorporating that affiliate program into your site.
Understanding the affiliate revenue information that your programs provides is an important step towards success as an internet marketer. Remember to look beyond the sell-price and evaluate conversion rates, re-sell rates, and payment details before you sign on to any new program.