The final factor that influences affiliate commission rates is the value of the company itself—and the value it places on affiliate marketing.
As I mentioned above, I have seen affiliate programs that offer low commission rates for low priced items. In the end, the affiliate gets paid very little for the work they do, and it just isn’t worth it.
Companies that do this are just looking for cheap advertising and refuse to recognize the true value of affiliate marketing. This often has to do with whether or not the company itself is valuable.
On the other hand, there are companies that truly value their affiliate marketers. To make sure their affiliates are happy, they offer higher commission rates. This is a win-win situation, and both the company and the affiliates are happier.
High Commission Rates on Cheap Items vs Low Commission Rates on Expensive Items
We have mentioned above that higher email data priced items usually have lower commission rates, while cheaper products offer high commission rates. In the end, which one will work better for you?
With high-ticket items, that small commission may actually add up to a larger amount in dollars for you.
On the other hand, a cheaper product with a higher commission rate may look good on paper, but the actual cash you receive may not be as good as you think.
For example, if you promote a product worth $1,000 with a 5% commission rate, you actually earn $50 per sale. However, if the product you promote is worth $10 and you have a 70% commission rate, you actually only earn $7 per sale.
That said,
you also need to consider how many items you will sell during the month. Lower-priced items tend to sell easier, so there’s a good chance you’ll make up the difference in sales.
Following the example above, let’s say you can only refer 10 sales of an expensive product per month, but you refer 100 sales of a cheaper product.
In that month, the expensive product landing page builder from strikingly will earn you $500, while the cheaper product will earn you $700.
Ultimately, you need to consider all of these variables when deciding on an affiliate program. So how can you use this information to test whether an affiliate program is worth your time or not?
How to Know if an Affiliate Commission Rate is Worth Your Time
Do the Calculation
As we just saw above, higher commission rates do not always mean higher earnings.
That’s why it’s so important to actually do the math!
To test any affiliate program, consider cell phone number the price of the product you are promoting, calculate exactly how much income you will see in dollars for each sale you refer.
You’ll also want to look for programs with recurring commissions when doing your calculations, as these can earn you recurring (even unlimited) commissions from just one sale.
Most SaaS affiliate programs like Shopify have recurring commissions because their customers pay a monthly subscription fee to have access to the software.