Quesiton for Affiliates...minimum payouts

[TropixxxMichael]

I was wondering what you think the "minimum" affiliate payout should be.
Right now, we are 50% Rev Share on our spanking site, and it seems like a lot of sites are right around there or even higher...

The reason I ask, is I have a new site that is VERY micro-niche, and converting very well at about 1:2. (Yes, amazing, but it is a VERY small micro niche, so if they find it, they are looking for it, and will buy it.)

The site does not have an affiliate program yet, but it would be very easy to add one. Although I am not sure I even want one...

I think it could be reviewed and do well on some review sites, but like I said, it is super micro niche, so if they even read the review they are most likely "into it" and would check out the site and most likely buy.

Would this be an example where a lower than 50% payout would be best? Or maybe a flat rate per signup? The site has not been live long (less than a month), so I do not have retention figures yet...but I am guessing they will join and stay, especially since I use DRM.

Your thoughts everyone?

[basschick]

why risk losing affiilates? just give your affiliates the 50% which is industry standard. i've promoted some very very tiny micro niche sites that paid me 50%. after all, affiliate sales is basically found money you wouldn't have had otherwise, so why be cheap about it?

btw, usually DRM makes people cancel, not retain.

[TropixxxMichael]

btw, usually DRM makes people cancel, not retain.

You know, everyone keeps telling me that, but my stats tell me the opposite.
I suppose that was true with older DRM that had issues with obtaining license, windows versus MAC, etc. but with Flash Based DRM I have not (even once) had a single member email us with an issue.

[basschick]

they don't email - they just cancel.


You know, everyone keeps telling me that, but my stats tell me the opposite.
I suppose that was true with older DRM that had issues with obtaining license, windows versus MAC, etc. but with Flash Based DRM I have not (even once) had a single member email us with an issue.

[TropixxxMichael]

why risk losing affiilates? just give your affiliates the 50% which is industry standard. i've promoted some very very tiny micro niche sites that paid me 50%. after all, affiliate sales is basically found money you wouldn't have had otherwise, so why be cheap about it?


I see your point...but since I have no affiliates to start with on that site, there are none to lose, so I was just looking at input.

As far as affiliate sales being sales I would not have had otherwise, I can see that point too...

It sometimes just does not make sense to me to pay someone 50% of a sale to add a link to their site. If someone actively promoted me, or gave a honest review, etc. that is one thing...but I have found that with many review sites, they just don't seem to get the niches so they end up reviewing them based on things like number of videos, etc.

Sometimes with a micro niche is not the number of videos, but rather the fact that there is ANY video at all. :D

[TropixxxMichael]

they don't email - they just cancel.

And I am sure that is the case with some sites...but trust me, when you deal with micro niche people, you get the emails.

I can get 30 emails because a model had the wrong color socks on in a video...they would email me for sure if they could not obtain a license to watch the damn thing to begin with. :D

[gaybucks_chip]

Not to hijack the thread, but Michael, I'm really interested to know whose flash DRM technology you're using. I haven't yet found any mature flash DRM solutions and if you have one you like, I'd be really interested in taking a look at it. :)

[TropixxxMichael]

Not to hijack the thread, but Michael, I'm really interested to know whose flash DRM technology you're using. I haven't yet found any mature flash DRM solutions and if you have one you like, I'd be really interested in taking a look at it. :)

No worries Chip. I am using PPVNetworks Flasher Technology on two of my sites now. (Not on my primary spanking paysite, but that will be changing very soon.)

You can read about it here:
http://www.ppvnetworks.com/ppvnethome.nsf/flasher

You can see it in "action" here:
www.allgaymovies.tv

Enter the site, then click on FREE PREVIEW.

We upgraded our TropixxxTV.com site with it a while back, and I am now also using it on a very micro niche site I just started.

I am friends with Damian one of the owners at PPVNetworks, and can get you in touch with him if you are interested.

[gaydemon_jr]

It sometimes just does not make sense to me to pay someone 50% of a sale to add a link to their site.

I personally think it is more than just adding a link to a site. For instance, that person has traffic that they could send in any which way they want and is usually in a niche environment in the first place.

Affiliates are (what I believe) to be quite an inexpensive way of advertising, as you don't have to pay unless there is a result. 50% is standard, and fair. Some sites even offer more than 50%.

[TropixxxMichael]

I personally think it is more than just adding a link to a site. For instance, that person has traffic that they could send in any which way they want and is usually in a niche environment in the first place.

Affiliates are (what I believe) to be quite an inexpensive way of advertising, as you don't have to pay unless there is a result. 50% is standard, and fair. Some sites even offer more than 50%.

Excellent points.

[TropixxxMichael]

So is it safe to assume affiliates prefer revshare over flat rate signups or whatever they are called?

[gaydemon_jr]

There is usually two sides to this argument.

With a site that retains, an affiliate webmaster would prefer revshare. But if memberships are cancelled within the first month, then PPS would be prefered.

If you update your site often and are truely niche, then revshare would probably be about right.

[TropixxxMichael]

There is usually two sides to this argument.

With a site that retains, an affiliate webmaster would prefer revshare. But if memberships are cancelled within the first month, then PPS would be prefered.

If you update your site often and are truely niche, then revshare would probably be about right.

Ok, thanks for the input. I appreciate all the help.

Thinking about affiliates as a form of advertising is a good way for me to think about it. Rather than "lost revenue" a payout is really just another form of advertising.

I am seeing the light. :D

Having never been on your side of things, it is sometimes hard to grasp alot of what you people talk about. :cool:

[gaydemon_jr]

Yeah, I can imagine. But yeah, affiliates are essentially advertising. It is a good way to think of it, and I'd never like to be associated with being a sap on someone's revenue, especially after putting effort into a freesite / advertising space. :)

[abostonboy]

they don't email - they just cancel.

Or chargeback!

[gaydemon]

You have to think of it in a different way.

The traffic you would get from any affiliates, is traffic you would never otherwise have on this site.

The vistors you get to this micro niche, is people who find it on their own. And that wouldnt change just because you also have affilites. The visitors who you get from affiliates and the visitors who are already finding the site are 2 very different groups of people.

You can only gain from having affilaites, because its traffic your site would not otherwise get. Simple as that.

You could go for a lower rate than the standard 50%, but then affilaites like myself would think twice about promoting it.

So in my view, either you do it properly or not at all. ;)



I was wondering what you think the "minimum" affiliate payout should be.
Right now, we are 50% Rev Share on our spanking site, and it seems like a lot of sites are right around there or even higher...

The reason I ask, is I have a new site that is VERY micro-niche, and converting very well at about 1:2. (Yes, amazing, but it is a VERY small micro niche, so if they find it, they are looking for it, and will buy it.)

The site does not have an affiliate program yet, but it would be very easy to add one. Although I am not sure I even want one...

I think it could be reviewed and do well on some review sites, but like I said, it is super micro niche, so if they even read the review they are most likely "into it" and would check out the site and most likely buy.

Would this be an example where a lower than 50% payout would be best? Or maybe a flat rate per signup? The site has not been live long (less than a month), so I do not have retention figures yet...but I am guessing they will join and stay, especially since I use DRM.

Your thoughts everyone?