75% Commissions And Why You Should Give Them

If you’re selling digital products, you’d know the most basic level of commissions you should give is 50%. People expect that as a minimum nowadays and yes, we do see most ebooks, software, etc giving out commissions at that level. (If you’re offering a measly 8% comm, wake up! Coz you’re not Amazon haha..)

So when I first started out selling Secrets Of Self-Made Millionaires, I too gave out 50% commissions. The thing was I wasn’t happy giving out the commissions! (ok note: wasn’t)

When I received an email in my inbow telling me of a new sale, I would jump up and then I’d go – ‘Oh shit, that may have been an affiliate sale.’

haha! Can you believe that?

Anyway, the reason why I felt like that was because I was GREEDY. I wanted everything for myself. I looked at an affiliate sale and I saw the $44 I didn’t earn. I totaled up all my affiliate sales, double them and say – ‘That was what I would have made if they weren’t affiliate sales’

Which was STUPID.

But back then, as a newbie, I believe it was a pretty common thing to go through. I didn’t have that long-term business mindset instilled in me yet. I wanted to do everything myself and I wanted to keep 100% of profits.

And so that stingy attitude kept me from bumping up my affiliate commissions higher because I just couldn’t bear to see an affiliate make $66 on my product while I just made a “measly” $21. I thought 50% was a good deal by itself already, I thought it was fair to vendor and affiliates, and so I kept it at that level.

OK, I knew some (or actually ALL) of the bestselling items on Clickbank offered 75% commissions and it doesn’t take a rocket scientist to figure out that there’s a very obvious pattern going on there. I knew that Ewen Chia was giving out 75% commissions for his Secret Affiliate Weapon, front-end to back, and that site is doing massively well.

All those real-life examples in front of me signalled that these guys had tons of affiliates working for them and they were making very good sales day in, day out. But I just couldn’t handle the “pain” I felt whenever an affiliate took his cut.

And so I gave myself the bogus excuse that these guys are successful enough already and that’s why they could afford to give such high commissions. I was a newbie and I couldn’t “afford” it. And so I continued to think that offering 75% commissions was Siao! (crazy).

Anyway, let’s now fast forward abit.

You might remember that we did a short promo when Andrew Fox’s Dominating Clickbank product dropped to half price ($47) some time back. I offered it to my list because I thought it was a good deal to grab and I personally picked up a copy myself.

After I went through it, my opinion of the product itself was that it was OK. But what I learnt from Andrew Fox was the power of having affiliates market and drive the traffic to your sales site for you. And it hammered out to me that you had to start giving out much more that just the basic 50% commissions.

I didn’t budge.

So fast forward somemore and now you might remember we did a promo for Joel Chue’s Mastermind Income Generator. Before he launched MIG, Joel met up with me to discuss how he could do his launch. And I learnt that he was prepared to give 75% commissions to affiliates. And my stingy brain (not me!) was going – ‘Wow! He’s actually prepared to do that.”

Anyway, we promoted MIG, I was making sales and it kinda gave me a kick to see that I was making 3 times of what Joel was making per sale. (Sorry Joel! It’s not me, it’s my brain!)

Anyway I felt really good, because I felt I was truly, truly rewarded for my affiliate efforts and I was happy that Joel valued me highly enough to give affiliates that amount of commission. I felt really happy promoting for my friend because he gave first (by “sacrificing” his cut of profits so I could make more) and now I wanted to reciprocate. (Normal human brains are wired to reciprocate good stuff…)

And then it hit me with a ton of bricks.

If my friend can give out 75% commissions and I now knew how it felt to be valued as an affiliate, what’s stopping me now from giving out the MAX commssions to my affiliates. Besides all the top products in Clickbank gave 75% commissions, and if i did the same thing, I too would attract more affiliates and make more sales.

And so I bumped up commissions for Secrets Of Self-Made Millionaires to the Clickbank max – 75%. And I waited to see if sales would actually improve.

Well… As you can tell from my Chinese New Year post, I’m a very happy man. David Vallieres decided to promote Secrets Of Self-Made Millionaires and we made a good glut of sales in just a few days. And it might not have happened at all if my commissions were stuck at 50%. The 75% commissions may have just been the thing that allowed David V to say yes to our product instead of another one.

Besides, I felt happy that David was being justly rewarded for his efforts. That he was making a good $66+ a sale while I was only pocketing $21+. It felt good to know that my affiliate was making 3 times of what I was making because it means that he’s making TONS more money than me. And I do that because I want to communicate that I value affiliates very, very highly by giving them a bigger share of the profit.

Also you want to make sure that your affiliates are happy, so that they continue to promote for you and the best way to keep them happy is to help them make TONS more money.

And that’s how I see it now.

Whenever an affiliate sale is made, I’m glad that my affiliate is being paid more than me. I’m glad that he’s pocketing $66+ per sale instead of $44 for his efforts, because I want to tell them that I value you, I want you to make more money, so that you’re happy to continue promoting my product.

Now I see all those $21 sales as “free” sales. They were given to me by my affiliates. If not for them, I wouldn’t have them at all in the first place! So it’s really like my affiliates giving me “free” $21 notes all day long. I didn’t really have to do anything to make that sale. It was my affiliate who did it, and thus s/he should be rewared the maximum for it.

And I’m glad I bumped up commissions to 75% because if I didn’t I would be missing out this glut of $21 sales, especially from David V!

So if you’re had the same mindset as I had before and you can’t bear to give out more than 50% then I suggest that you DO. Because from what I’ve shared with you so far, it really does pay off.

Give first and you will receive more back in abundance.

  

2 Comments so far

  1. TOFUmonkey on March 1st, 2007

    well,

    the owner of doubleyourdating is giving away 150%,

    talk about REALLY knowing your numbers…
    hahaha…

    Cheers,
    Ming Chern

  2. Dylan Loh on March 4th, 2007

    Totally agree!

    If I could give away 100% commission on Clickbank I would! (capped at 75%)

    Another thing is that Clickbank positions and calculates your gravity by the number of REFFERED SALES. So sales made by your own promotional efforts doesn’t count towards you ranking higher on the marketplace!

    And if you could stay on the top 1-2 pages on Clickbank, the amount of traffic and direct sales off it would ensure that you maintain that position.

    Something I learnt from Mike Filsaime :)

    My 2 cents!

    Dylan

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