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Fundamentals of High Ticket Affiliate Marketing Commissions
You’ll encounter a lot of different programs in affiliate marketing. Not all of them are ideal if you have a long-term vision. Here are some definitions for the most common program structures out there, and some reasons you want to stick to the last two. • Physical product commissions: This is a structure where the affiliate is given a commission rate for moving a single or set of physical products. This is the structure used by Amazon.com and other major online retailers. While they can be high-ticket, most aren’t. You’re likely to only collect a few percentage points off the sales price. • CPA: This is a structure where the affiliate is granted a commission rate based on an action taken. These structures are mostly used to help businesses and advertisers pad out mailing lists, and the commissions tend to be small. • Monthly recurring commission: This is a structure where the affiliate continues to collect a commission rate every month for either a set period of time or for as long as the subscriber keeps paying. One sale could mean years of passive income. This structure is used for many subscription services—both cheap and expensive ones.
• High-ticket: This is a structure where the affiliate is paid higher-than-usual rates to close expensive products/services like coaching programs or enterprise software. Compensation can be higher than 50%. The higher percentages are a reflection of the fact that selling these products tends to require better content and more trust. It should be clear why the last two are the most worthwhile if you’re serious about affiliate marketing. Programs with recurring monthly rates can provide you with years of high income for a single conversion. You can turn a profit with only a few conversions a year. FREE TRAINING: How I Build, Rank, and Flip SEO Sites for a ProfitIf you want to be an affiliate who can compete for offers that pay this way, It’s important to understand the relationship you have with the sales funnel. Only an affiliate who understands their place in the funnel will be able to pull the maximum value out of top offers. Understanding Sales Funnels and Their Power The sales funnel is the process that a buyer follows to make a purchase, especially an expensive purchase. While it’s a little different for every product, a simple one works like this:
1 Awareness: In the first stage, the customer becomes aware that a product exists. They may get this awareness from mass advertising, word-of-mouth, or by being targeted in a mailing list. Only a small percentage of people in this stage will move onto the next one. 2
Interest: In the second stage, the customer starts to desire the product. This may be because it solves a problem that they have or because they were well-targeted and it’s the kind of thing they enjoy. 3
Decision: In the third stage, the customer acts on their interest and usually performs research. They may choose between two different brands or between one marketplace and another. When they’re satisfied, they’ll make the decision to buy. 4
Action: In the final stage, the customer takes action and purchases the product.
In most cases, the more expensive the purchase, the more carefully this path is followed. People are reserved when making big purchases. They want to be reassured by solid information, professionalism, or trusted influencers that they’re making the right decision. The sales funnel will matter if you’re trying to get approved for high ticket affiliate programs. Fortunately, many of the best affiliate programs (including some we’ll talk about), have already built out infrastructure to pull people into the first few stages. Before you invest anything, you want to make sure that you’re starting with the most lucrative types of high ticket affiliate products. Let’s go through some of the ways you can find and promote the best products out there. Finding & Promoting The Best Affiliate Products There aren’t hard rules for what makes a product the “best”. If you value your time, though, you’ll take the time to verify that you can say the following about a product: It’s popular Stick to products that you know are selling to someone. Don’t be afraid of difficult niches, but remember that some high paying affiliate programs only pay well because moving the product is a headache. If there’s no market, a high commission rate doesn’t mean much. It’s high-quality When you sell someone else’s product, you take on a part of their reputation. Do a Google search. If you find the product is crappy and hated by reviewers, putting it in front of your visitors may make them distrust you. It doesn’t have a high legal burden Some programs have high affiliate marketing commissions because advertisers have to observe strict laws. For most affiliate website owners (especially new ones), this isn’t a good place to start. Those who focus on developing expertise can profit, though. It offers you multiple ways to profit Some of the most valuable affiliate offers are the ones that give you multiple ways to cash in on your work. Great offers may include any or all of the following: • Recurring monthly commissions: Collect per month, every month, for as long as the subscription or cookie lasts. Look for affiliate offers that include lifetime cookie duration. • Second-tier commissions: These are really valuable commissions where you get a cut of each item that other affiliates have sold after being referred to the program by you. • Backend opportunities: Once a customer has purchased one product, they’ve signaled that they’re more likely than the average user to convert again. The mailing lists you build with one offer can be used to sell more advanced affiliate offers.