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.
Example:
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 or e-commerce store for this) such as camo gear, apparel, camping gear, knives, sheaths, etc. (you get the picture) you can make a nice chunk of change from one niche.
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 do for my eco-friendly laundry detergent) but most are buy-and-go.
- 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 To 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 do this, watch your inbox because we’ll be offering a course on How-To.
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 then just sit back.
I use this one (yes, it’s my affiliate link, but hey, a girl’s gotta eat and the FTC says I have to tell you). 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).
How does affiliate marketing work? Think of affiliate marketing as a form of word-of-mouth marketing. This business model relies on affiliates to recommend a product or service to their audience, earning the affiliate a commission 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 individual whose purchases make affiliate marketing work for everyone involved. The consumer is a crucial part of the model.
- 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 using an affiliate link.
- Next, the affiliate includes this link within their content, such as a blog or Pinterest pin.
- Then, the consumer clicks the affiliate link in the content and purchases the product or service through that affiliate link.
- Lastly, the affiliate earns a commission for the sale.
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 mine above, but here is another verbiage you can copy and use:
- This [post, website, reviews] 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.
If you violate the Federal Trade Commission’s (FTC) guidelines for affiliate marketing, you could face:
- Civil or criminal penalties: The FTC can take action against you, which could lead to civil or criminal penalties for all parties involved.
- Fines: You could face fines of up to $51,744 per violation.
- Account suspension or termination: Your account could be suspended or permanently terminated.
- Lawsuits: You could face lawsuits from the affiliate program.
- Clawbacks: You could be required to repay commissions earned through fraudulent means.
- Blacklisting: You could be blacklisted across multiple networks.
- Increased scrutiny: You could face increased scrutiny and restrictions on your activities.
