Anyone ever start their own offer?

[wrstroud]

I found a small company that makes a particular niche product, however, they don't do much online advertising at all. I contacted the owner of the company and talked to him for a bit about promoting his product for a commission. I thought about making a landing page, shopping cart, creatives, etc. and then get directtrack setup so that it can interface with many of the affiliate programs out there that use it.

Do any of you have any experience in this field? The company is selling this product for $15 and the cost of the materials is probably around $5 if I were to be generous. I thought about dropshipping the product and then just get a volume discount if the cumulative effort of affiliates would bring enough volume my way. That way I could sell the product for around $18 and make around a $6 or $7 profit. I would then pass off $5 to the affiliate per sale. I know its hard to tell if its a good deal for affiliates without knowing the actual product, but would a $5 commission be a good start for affiliates selling an $18 product that is pretty niche-focused?

Thanks in advance for any ideas/help/experience.

 

[AMagz]

Tell him to contact an affiliate network as a merchant / advertiser

 

[wrstroud]

Yea but he doesn't know anything about computers or anything like that. So I would do all the work connecting the dots of his product with the power of affiliates pushing the product. I would take a commission and then give a commission of every sale to the affiliate.

Basically he said he would pay me per product sold...I would give 75% of it to the affiliate and keep 25% for myself.

 

[coach]

Margins and profit per unit sound really small. It's best to work with something that costs around $5-$10 and retails for $50. This margin allows for advertising, paying affiliates, and various other overheads you'll encounter, not too mention your time it would take promoting the product.

 

[AdHustler]

Margins and profit per unit sound really small. It's best to work with something that costs around $5-$10 and retails for $50. This margin allows for advertising, paying affiliates, and various other overheads you'll encounter, not too mention your time it would take promoting the product.

you can make plenty of money on a smal dollar product. My question is, if you have this conection and think it will sell, who not be the sole affiliate and BANK off this?

 

[Rage9]

you can make plenty of money on a smal dollar product. My question is, if you have this conection and think it will sell, who not be the sole affiliate and BANK off this?

Because it can be easier to let other people make you money IMHO. Frankly though, you also have to remember an network is going to take 10%-25% of that commission, the affiliate will get the rest.

 

[WayneDog]

Tell him to contact an affiliate network as a merchant / advertiser

I wouldn't go that route. If it's something that isn't already on the networks and has potential to be profitable and isn't saturated yet then set it up direct. Way too many affiliates just look for whatever offers they find on the networks so by telling him to put it on the network you are asking for a ton of competition in something you could otherwise own.