Negotiating Commissions on Affiliate Programs

Affiliate programs everywhere depend on the cooperation of site owners like you to do their marketing. However, what determines the appropriate amount of pay for these services? While some affiliates are paid on a pay-per-click basis, others don’t make a profit unless an actual sale takes place. Either way, many people are uncertain about they payments they can expect from participation in an affiliate program and how to negotiate the best commissions.

When negotiating affiliate program commissions, there are a few things you need to remember. If your site generates a powerful number of business or business leads, a number of companies will want to utilize your assistance. In other words, if you aren’t being paid a reasonable amount, there may be someone else out there who is willing to pay more. Payment is usually based on the amount of business your site can potentially generate and the size of the ad. However, at times, commissions can be based mainly on the amount the company has allocated for advertising. Targeting companies who sell high dollar products or those who sell products that are related to your website, will generally produce your highest commissions.

Upon being offered a commission, there is almost always room for negotiation. Counter their offer with an amount that is at least 20% more than what they have originally suggested. If you are already their affiliate or have been an affiliate in the past, know the statistics about the leads your company has generated. If you are a high producing affiliate, this information may help you bargain for a better profit. Additionally, you may want to consider surpassing the affiliate network programs, as they often are a third party, taking their own cut, and go straight to the company who needs your services. Outside of their affiliate program, they may be able to provide you with a better offer. You may also want to find other affiliates who work for the same company and compare your pay scale with theirs. Affiliates can make significantly more from their websites if they know how to effectively negotiate.

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