Affiliate Marketing – Spread the Pricing
In the course of earning a living online, I promote and sell a variety of products in a number of different ways. You might not know that if you read this blog, where I promote a number of products but emphasize one over the others – Wealthy Affiliate. I like the product, think it offers good value for the money and it converts fairly well, which is to say that the people to whom I recommend the product seem to like it.
While I promote other products, this is the product that I think works best with both the content and the readership of this blog. Many of the visitors to this site are people who are new to trying to make money online and they may not fully understand the process that goes into making money in affiliate marketing. Wealthy Affiliate is a good way to introduce them to the concepts involved and with the free trial, they can even learn the basics for free. But someone recently posted a question in the comments on this site about that, asking, “Why do you promote wealthy affiliate for a few bucks when you can promote these “high ticket” products and make much more? ” That’s a good question, so I thought I’d go into detail about that in this blog post.
Affiliate Marketing is About Conversions
When you start out in affiliate marketing, it’s easy to be confused by the dollar signs. When getting started in trying to make money online, most people look over the products in their niche that they could be promoting, and instinctively gravitate towards those that pay the greatest number of dollars per sale. If they’re promoting a book, they might pass up one that pays $10 per sale to promote one that pays $100. If they’re looking at a membership site, they might pass up one that sells for $47 per month and instead find one that sell for $297 per month. If they’re promoting jewelry, they’ll want to promote the site with the $5000 bracelets instead of the site that sells the $50 versions.
There’s nothing wrong with that, and we’ve all been guilty of trying to promote the most expensive items in order to get the highest commissions. The problem is that the per sale commission doesn’t necessarily reflect the overall amount of money that you’re going to make, and it can be easy to be confused by the distinction between per sale commissions and the amount that you’re going to make in the long run.
There are important considerations that go into deciding what products to promote, and one of them is the conversion rate. It doesn’t matter how many people you send to a particular product’s sales page or the amount of money that you’ll receive for each sale. What matters more than anything is the rate at which you make sales. When it comes to conversions, lower priced products always outsell more expensive ones. That’s just the way it is, because most people don’t have a lot of money to spend for anything. Promoting a $47 product that sells and sells often is going to produce a lot more revenue for you in the long run than if you promote a $997 product that rarely converts.
In fact, I have a Website that exists for the express purpose of promoting a product with a $997 price tag. It’s a good product. It comes with a money back guarantee. The cost of the product is tax deductible, which effectively reduces the price. The product, while expensive, will actually save people more money than the cost of the product over the first two years that they have it. My site gets good traffic, and it’s been online nearly a year.
I’ve made zero sales of that product so far. Why? Partly because the product sells for a thousand dollars. Yes, the commission is huge; I’ll get $500 for every sale. But after a year, I’ve yet to make a single sale, so I’ve earned nothing. On the other hand, I’ve referred more than 1000 people to Wealthy Affiliate this year, and many of them have signed up as paying members. While I’m hardly getting rich, I have actually earned money promoting that product, partly because it’s good, but mostly because it’s a product that most people can afford.
Affiliate marketing is a good way to make money online, but you have to give some thought to which product you’re going to promote. As a rule, less expensive items are going to sell better than more expensive items. Does that mean that you should only promote inexpensive items? No, but if you’re just starting out, you probably should promote inexpensive items exclusively. What you should never do is promote only expensive ones. Unless you have 100 Websites promoting thousand dollar products, you’re not likely to make sales very often.
A better idea, and one that I employ, is to promote a variety of products in a broad range of prices. While I do promote the relatively-affordable Wealthy Affiliate on this site, I also recommend a few other products here that cost more. They’re good, and they’re worth the money, but like any other expensive product, they don’t generate sales all that often. It’s nice when they do, but I don’t count on the sales of those products to generate income on a weekly basis. Instead, I include some more expensive products in a mix with other, more affordable ones.
Affiliate Marketing Commissions Summary
When starting out in affiliate marketing, you should concentrate on products that convert. That might mean promoting products that sell for $10 or $20. The key is to start earning some money. Over time, you can expand your offerings to include some more expensive products, and perhaps some very expensive ones. I have one Website in a luxury niche where I promote products that run into the six figure range. I haven’t made any sales of that product, but the site also has products for sale that sell for as little as $50. That’s a huge range, and the potential for getting a big payday is there, but most of the time, the sales are small.
That’s fine. Affiliate marketing is about making the sales, and in the end, that’s all that matters. The products that make money for you are going to be the products that actually sell. Work on that, and you’ll be good.