The Product(s) You Promote & Commission Rates
- Just because a product has a low percentage, doesn’t mean you can’t make money. For instance, jewelry has a relatively low percentage (3% – 7%). But what if you sold a low-end Tag Hauer watch ($5k)? At 5%, you just made $250. High-end products can make you money, but so can other products.
Let’s say you’re into hunting. Selling a hunting bow may yield you $25, but if you combine it with other products (you’ll need to set up a funnel for this) such as camo gear, apparel, camping gear, knives, sheaths, etc (you get the picture) you can make a nice chunk of change.
Now, not to kick physical products, but they’re just that….physical. Most purchases are one-time. The only types of companies that I can think of that would possibly have repeat customers are Beauty, CBD, Pets, and maybe Health (supplements). I’m sure there may be more than these that have loyal fans (I know I am for my eco-friendly laundry detergent) but most are buy-and-go.
Note:
- Digital products generally have a higher return. Companies don’t have to pay for research and development, manufacturing, storage, shipping, etc. The commission rates range from (30% – 100%) and most are recurring. Why would a company offer 100%? Because they usually have a high-end course or mastermind that they’ll want you to promote.
- These companies generally have a funnel. Meaning, your customer agrees to purchase X for $97 but before they can completely check out, they’re offered something else for either a higher amount (say $197) or a lower amount (say $47). There are usually 3 – 4 steps in the funnel. You’ve all seen them…BUT WAIT, THERE’S MORE!
- By promoting these digital products, you can make a substantial income if done right. If your customer buys the $97 program, then adds the $47 offer ($97 + $47 = $144). You get 40% = $57.60 every single month for that one customer. Multiply that by 10 customers and you’re going to get $570.50 every single month that they’re a customer. Promote more than one product or service and you can really see your new income add up.
How & How Often You Promote
Social Media is an excellent platform to promote a product and it’s free. But don’t be cheesy with the “buy this”. Instead, finesse potential customers. Talk about what you’re doing, why you’re doing it, and any snags or triumphs along the way. After at least 10 – 15 posts, mention a product (the one at the top of your funnel) with the link.
There’s an art to this and if you want to learn exactly how we learned to do this, click this (yes, it’s my affiliate link, but hey, a girl’s gotta eat and the FTC says I have to tell you). Yep, this is where I learned that too.
You should talk about (not sell) the product/company/reviews at least 3X a week. Spread them out. Make it a habit to post every Monday, Wednesday, & Friday or Tuesday, Thursday, Saturday. You get the picture. Just try to stay away from Sunday. I’ve noticed that my lowest engagements are on Sunday.
There are platforms that you can use that will automatically post for you on any given date at any given time. You can pre-load them and sit back. I use this one (yep another affiliate link that I’ll get a small payment for). Having an automated system to handle my social media really helps, especially when I know I’m going to be super busy (Vacation, Thanksgiving and Christmas).
So, How Does Affiliate Marketing Work?
Think of affiliate marketing as a form of word-of-mouth marketing. Businesses rely on affiliates to recommend a product or service to their audience, where the affiliate is compensated for each purchase.
There are 3 main players (and a bonus player) in affiliate marketing:
- The seller: This is the business that wants to sell its product or service via affiliate marketing.
- The affiliate: This is the publisher or individual who promotes the seller’s products. Affiliates can have websites, or be bloggers, YouTubers, social media influencers, or other content creators.
- The consumer: This is the purchaser who buys the product which makes affiliate marketing work for everyone. The buyer is a crucial part of affiliate marketing.
- The seller-network (bonus player): This is the easiest way for sellers and affiliates to find each other and work together. Not all sellers use networks, but it can be a great place to start for those new to this type of advertising. Some of the most popular seller-networks include Amazon Associates, eBay Partner Network, Etsy Affiliate Program, and Elementor Affiliate Program. In the simplest terms, the process typically works like this:
- The seller partners with an affiliate to promote a product(s) using an affiliate link that is designated only to that affiliate.
- Next, the affiliate includes their affiliate link within their content, such as a blog, an Instagram or Pinterest post.
- Then, the consumer clicks the affiliate’s link in the content.
- If they purchase the product or service through that affiliate link then the affiliate earns a commission for the sale.
Popular Digital Platforms:
- Blogs: Bloggers are ideal for affiliate marketing. They’re focused on a specific niche, and are experts (or on their way to becoming experts) on their topic.
- Email newsletters: Newsletters sent by bloggers and product review websites, reach their audiences right in their inboxes. Email is one of the best ways to convert on affiliate links, but don’t spam.
- Pay-per-click (PPC) ads: PPC ads don’t require the affiliate to know the product they’re promoting. Affiliates can simply opt into Google AdSense, to have PPC ads displayed on their website, or videos. These ads are usually aligned to the affiliate’s audience to ensure relevance.
- Product review websites: Websites dedicated entirely to product reviews, is another way for affiliate marketers to make money by making recommendations. Readers tend to trust these sites because they usually test products and compare them.
- Social media: Social media marketer and an influence marketer are not the same.
Influencer marketing involves compensation with a flat fee, free products, or both.
Affiliate marketing is just commission-based.
Another difference is how affiliates measure and track success. Influencer marketing focuses on reach, and engagement. Affiliate
marketing focuses on conversions.
- YouTube: YouTube is one of the best places to use for affiliate marketing. Whether it’s crafting, music lessons, or pet training, or anything else, you can find a YouTube channel for it. This makes it a great platform that sellers use to find potential affiliates.
Note: If you receive any type of compensation (commission, access to products, services, or events, free products, store credit, or discounts) the Fair Trade Commission (FTC) basically states that you cannot hide any affiliate links. You must state that the link is your affiliate link.
- Your FTC disclosure must appear as close to the beginning of the content as possible, or where the audience is likely to first look within the content.
- Any attempt to conceal the nature of your relationship with a brand, you won’t be compliant. Using tiny fonts, colors that blend in with the page’s background, or any other trick to conceal that you’re receiving compensation violates the FTC guidelines.
You’ve seen my two above, but here is another verbiage you can copy and use:
- This [post, website, or review] contains affiliate links for which I may receive compensation. Please click here to read my full FTC Affiliate Disclosure policy.
Remember: it has to be in a prominent place. If you’re doing a video with “click the link below” you can just say in your video that you receive compensation by the company.
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