Hey I am starting an affiliate program..

How much do you guys think a web hosting customer is worth ?

Should I pay fixed price per sale or %.

Thanks

Really depends on how well your other marking strategies are. Have seen companies go from between $5 and $80.

Good luck

I think the max I would pay is the price of the package.

like 100% comission one time..

that would be fair enough right?

I really need opinions thanks

Originally posted by joephill
I think the max I would pay is the price of the package.

like 100% comission one time..

that would be fair enough right?

I really need opinions thanks

I think you answered your own question! :)

In ISP world, generally if you buy a company, you pay in the range of $150 per subscriber for an account that charges about $20 a month. Use that as benchmark a webhosting client would be worth at least 6 months of your monthly revenue. You can also use the cost of the customer acquisition as the benchmark to determine how much you should pay the affiliates. :-)

Originally posted by kewlu
In ISP world, generally if you buy a company, you pay in the range of $150 per subscriber for an account that charges about $20 a month. Use that as benchmark a webhosting client would be worth at least 6 months of your monthly revenue. You can also use the cost of the customer acquisition as the benchmark to determine how much you should pay the affiliates. :-)

6 months of revenue for comission for me is insane since I am starting..

Well I will just figure out and pay the max I can

I think 200% would be good..

Thanks

I would be careful if offering more to the affiliate then the first month hosting is worth. If you sell a package for $10 and offer an affiliate $20 per referral, they could sign up under a different name for 10 accounts which costs them $100, but they get paid affiliate commissions of $200, then they cancel the accounts and walk away with $100. If you also offer a money back guarantee for new accounts, you could lose the lot.

If you offer more than the first month, make sure you have a policy that protects you from this.

Maybe offer 100% of the subscription price, and then a small percentage of the subscription every month that person is a subscriber.

It can potentially be an administration nightmare though.

I already figured out a very good way to run the affiliate program.. I will be buying professional affiliate software very soon and start promoting the affiliate program

Originally posted by joephill
I already figured out a very good way to run the affiliate program.. I will be buying professional affiliate software very soon and start promoting the affiliate program

What software are you buying? if you don't mind telling us.

Yeah, I need a decent affiliate program as well, spill the beans!

Affiliate programs can be difficult to operate - especially when starting out. Nobody knows you and business reputation level is zero. You could also invest into normal advertising and then offer referal fees to your own customers. "Send us your friends and we will pay you for it." - it generates word of mouth advertsing with a little extra to it.