Finding the Highest Paying Affiliate Programs is a top priority if you want to make you fortune as an affiliate marketer. But how do you decide which program will make you the most money? New affiliate marketers tend to look solely at the price of the goods being sold at the percentage of the commission. This is a big mistake. Just because a program pays big commissions does not necessarily mean it will make you the most money. There are many more important factors involved in determining which affiliate program will help you make the most money.
One of the biggest factors you should think about when choosing an affiliate program is whether or not it will allow you to sell products which involve recurring commissions. An example of this would be a membership dating site, where customers are billed a monthly fee.
Ideally, you want to have this option as an affiliate because it provides excellent opportunities for long-term, passive income streams. Be aware that just because a vendor sells products that require recurring payments, doesn’t necessarily mean you’ll get recurring commissions. You need to check the fine print to see whether you get paid every time that customer pays their monthly bill, or if you only get paid for the initial sign-up. Big difference.
Another factor that can make a big difference to your earnings is how long the vendor keeps track of leads you send their way. For example, some vendors use a 30-day tracking cookie to keep track of which visitors have come in through your affiliate link. If those visitors buy within the first 30 days of clicking through your link to the vendor, you’ll get a commission. You also get a commission on any other purchases they might make from the vendor during that 30 days.
Ideally, you want to find affiliate programs that offer lifetime tracking. In other words, once you send a customer to the vendor, you earn a commission on every single purchase that customer makes from the vendor forever.
Commission percentage is important to how much you earn as an affiliate. Some information products offer huge commissions, such as 75% of the sale. This is because the profit margins on info products are huge, so vendors can afford to pay their affiliates well.
When it comes to physical products, you can expect to see much lower commissions, generally between 4-15%. Again, the rate of commission must be put in context along with other factors to determine how much you’ll make from a program.
Also keep in mind that many affiliate programs have a tiered commission structure, so high-performing affiliates can earn more.
The authority status of the affiliate program can also affect your earnings. The classic example of this is Amazon.com. Amazon is well known for paying a pittance in commissions, around the 4-6% mark depending on how well you sell their products. So why does Amazon have so many affiliates?
Amazon can afford to be stingy with commission rates because of the authority of their brand presence on the Internet. The idea is that the low commission rates are made up for because people are much more likely to buy something from a trusted site like Amazon. On top of that, Amazon has a very good up-sell system designed to extract more value from every customer.
CPA Versus CPS
Two important terms to know are CPA (Cost Per Action) and CPS (Cost Per Sale). These are the two primary ways of earning as an affiliate. CPA affiliate programs pay you for getting a prospect to complete an action, such as offering an email address or filling out a form. CPS programs pay you when a visitor you send to the vendor actually makes a purchase. CPS is the dominant model used by most affiliate programs.
Affiliate Support and Training
The support and training offered by the program is also important, especially if you’re new to affiliate marketing. Find out what the affiliate support is like and what kind of tools the program provides you with for marketing, such as text links, banner ads, free articles and so on.
Last but not least, you should look at the terms involved in getting paid by the program. Check the minimum payment amount for the program and whether they allow payment by direct deposit, or only by check. Some programs have a minimum payment of $100 – others allow you to set the payment at any level.Google