Scenario: You participate in one or many affiliate programs. You get plenty of hits. Your sales ratio is about 2% (which is good) and yet you’re only making $42.80 per month. It’s okay, but nothing to shout about.

Consider this: If you put just as much time and effort into marketing each affiliate program, then receiving affiliate commissions of $15 per order is much better than receiving affiliate commissions of $1 per order. It costs you just as much in your own time yet you make 15 times as much.

Why join affiliate programs that sell products or services with such low affiliate commissions? For a reasonable return you will need extremely high volume. How about earning $65 per sale? Or perhaps even $100 per sale?

I hear you say that it is difficult to get many sales of this size – but even if you only got 5 sales per month from a $100 affiliate commission that would be $6,000 per year from just one program. Compare that to our $1 per affiliate commission program. You would have to sell 500 items per month and 6,000 per year. On a sales ratio of 2% this would mean you would have to get 300,000 visitors per annum or 25,000 visitors per month. That is very hard!

With our $100 product we need only 3,000 visitors per annum or 250 visitors per month.

Maybe we might not get 60 sales out of 3,000 visitors. Lets say we still get 60 sales but out of 30,000 visitors. We still have 1/10th of the number of visitors for the same amount of affiliate commissions per annum of $6,000. And we all know how difficult it can be to get traffic.

Sell products or services with higher value affiliate commissions and you need less traffic. Now I like it when someone tells me I need LESS traffic!

About the Author:
David McKenzie of http://www.brisney.com For great ideas on promoting your web site or marketing your affiliate programs subscribe to our Free twice monthly newsletter by sending a blank email to mailto:brisney@brisney.com

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