Quote:
Originally Posted by StuartD
These promos are great and all, really boosts the enthusiasm of affiliates... but I could just never figure them out.
I mean, if I send you 150 sales in one month, wouldn't it stand to reason that I would have very little trouble getting myself an IPhone if I wanted one? Why put in the work, wait the month, wait extra for shipping and stuff... when I make enough sales to just get one today?
I'm not trying to knock your promo, I've felt the same way about xbox promos, ipods, xbox 360s, ps3's, wii's... and so on. All through the years. Programs keep doing this and affiliates keep signing up to get it. So it works.
I just never have understood it myself.
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I agree with you on that one, 150 sales on $30 per would be $4,500. Anyone with that kind of traffic and sales either already has an iphone or some other incredible phone and wouldn't need one. The rich get richer right?
IMO, promos should be the very least in sales to receive an item. Example, Sponsor pays 60% rev, with $20 per sale. So they're making $8 per sale. They do a promo with a $300 item. They'd need 38 sales to break even with spending $300 on that affiliate. Well, the sponsor SHOULD be able to take into consideration rebills and upsells. So they give out the promo at 30 sales. They need about a 27% return rate on those 30 sales and they make their money back. You also take into consideration the tons of affiliates who just arn't going to make the 30 mark. That's all profit. PLUS the sponsor has now gained more traffic, including possible se spots, as well as a larger affiliate base.
The point of a promo is supposed to be to get your name out there. To gain affiliates and get publicity. You gain traffic and affiliates. It shouldn't be about "makes us $5k and we'll send you a free gift." Any sponsor who has an affiliate making them $4k+ per month should already be giving that affiliate an increased payout rate in the first place. It's the proper way to do business.