How Product Price Works in affiliate marketing school

February 21, 2011

Affiliate Marketing

If you are new in affiliate marketing and have chosen cheaper products to promote, then you must be cautious in not getting too disappointed with the results.  Why?  Well, simply because cheap products yield low commissions.  Also you need to be aware of the affiliate marketing scams.

Yes, you got that right.  The cheaper the product, the lower your commission is. Say for instance, if the affiliate merchant said he or she is going to pay you a commission of 20% for every good or service you promote, then a 100-dollar product would only get you 20 dollars in commission.  Meaning, if you make 10 sales in a month, you will only be getting 200-dollar income from the program.  That’s quite disappointing compare to what you have primarily expected before starting it, right?  Imagine if you can’t even manage to make ten sales.  What if you only had two?  That’s a measly forty dollars!  So much for generating good traffic to your website.

Now, looking at the other end of the spectrum, if you have opted to promote highly priced products, you can definitely earn more at a 20-percent commission.  Say, the item costs 500 dollars.  With every product sold, you can earn 100-dollar commission.  If you manage to sell ten of it in a month, then that’s $1000!  Not bad for a newbie like you, right?  And even if you made just half of the sales, it would still be good enough.  There’s still a long list of marketing strategies to learn and apply.

It may not come very easy to convert sales especially if you are new in affiliate internet marketing.  This is why it is very important to exert extra efforts in driving traffic to your website.  The more traffic you get, the more possible clients you have.  It is also necessary that you opt for highly-priced enticing products so you can guarantee higher income.

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