Is a 25% payout when the average sale is $450 good?

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Parkeagle

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Apr 21, 2011
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Ok, I'm asking this with reservations. I've read the rules. I'm not promoting. I'm just asking before we start looking for a manager or affiliates.

Product average sale is over $450. All online.
Conversion to sale is about 3%.
Market is B2B - most website owners.
Commission is 25% of total sale.
Can't find any other affiliate plans for the same product.
Is this considered to possibly be a good or bad opportunity to market?
I know there are a lot of variables- I'm just asking so we don't look stupid- but maybe just asking will. If so- really sorry- Backing out of room now.
 


$450/4 = $112.50 at 3% is pretty good but a better way to look at it would simply be to throw x,xxx targeted uniques at it putting yourself in your affiliates shoes. Can you stay profitable with those ^ numbers being your own affiliate? $112/sale is nice but at the end of the day people need to bank, and bank well in order for you to retain them. If I have to spend $90 to get a sale, it sucks, if they refund a few weeks later, it sucks more. If I can pop sales at $10 or 1:33 like you're saying, and the refund rate is low, then I'm in all day. Depends on your niche, which depends on your keyword/media buy spots and costs, without that info it's hard to see profit potential (B2B/website owners is still broad).

Also you should consider your backend, no homo. If you can get 1-click-upsells integrated, if someone is spending $450 at one time they would be more than willing to grab a few add-ons just before or just after initial item purchase (unless you've already tested and it doesn't warrant more pitches during or after the sales process). < This helps a LOT with affiliate retention.
 
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That is helpful. Thank you.
To answer the questions you raised- which obviously would be some that others would also.man
In 2 years- virtually NO returns
Upsell- absolutely- There are add ons- in fact some double and triple the average.
Again, not trying to be vague about the product- just trying to gain info without promoting.
 
ncmedia said:
$450/4 = $112.50 at 3% is pretty good but a better way to look at it would simply be to throw x,xxx targeted uniques at it putting yourself in your affiliates shoes. Can you stay profitable with those ^ numbers being your own affiliate? $112/sale is nice but at the end of the day people need to bank, and bank well in order for you to retain them. If I have to spend $90 to get a sale, it sucks, if they refund a few weeks later, it sucks more. If I can pop sales at $10 or 1:33 like you're saying, and the refund rate is low, then I'm in all day. Depends on your niche, which depends on your keyword/media buy spots and costs, without that info it's hard to see profit potential (B2B/website owners is still broad).

Also you should consider your backend, no homo. If you can get 1-click-upsells integrated, if someone is spending $450 at one time they would be more than willing to grab a few add-ons just before or just after initial item purchase (unless you've already tested and it doesn't warrant more pitches during or after the sales process). < This helps a LOT with affiliate retention.
Click to expand...

+repreprep
 
That's a fairly decent payout, and is the $450 a one time payment or ongoing monthly fee that you receive a risidual from?
 
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