I am wondering, how do hosts offer high rewards for their affiliate programs such as $85 per client? How do they not lose money on the client? I see their plans at around $7.95 or something similiar and I dont possibly see how they can make money on the client unless the client stays long term.

Is there some sort of way the host covers themselves by only paying the bonus after the client has covered the cost of the bonus in hosting fees? How can they be assured that people wont just sign up to abuse to program? I am sure people know all this and that is why I am asking because I dont really understand how the affiliate programs work on the host side of things.

Same goes for incentives such as free ipods with plan x (random pick) that I see every once in a while.

I think the notion is that a single client can be worth real gem and I can only agree with this, over a short time I've seen 1 client turn into 30, just by referrals. Now how do you put a pricetag on that?

If they spend $90 in advertising for every client they get from advertising, isn't it cheaper to just give out $85? They were going to spend it anyway, might as well drop the price a little or something and grab some more clients.

This is one place that should tell you how a company is approaching growth - word of mouth or are they advertising to grab as many clients as possible?

well do you think that hosts that provide percentage from sale generated lets say 10% can compete with those paying from 50 to 150 USD per single customer?

well do you think that hosts that provide percentage from sale generated lets say 10% can compete with those paying from 50 to 150 USD per single customer?
Yes, I do. But I think it would be much more difficult for the host to get new affiliates... (most affiliates want their cash as quickly as possible.)

With regard to the original poster's question... the company's that offer these big incentives usually only have the low price if the customer signs up using the yearly contract. So it's $7.95/month, but they actually pay for one year which is a one-time payment of $95.40. This covers the cost of the affiliate payment, as long as the customer stays for the year.

Also, if you look at the plans, they are often very basic, and "upgrade" fees are common for adding additional features, etc.

What about offering a free month of hosting for each new client referred? That is what I would assume to be the best option.

What about offering a free month of hosting for each new client referred? That is what I would assume to be the best option.
Not all affiliates are customers. :) Offering a free month of hosting is not going to help you get a lot of affiliates.

It is better then nothing, but is not a big incentive for referring your company.

Also, it really depends on your pricing. If you offer $4.95/month packages, then it is not likely worth their time. You're paying the equivalent of $4.95 for a referral? haha.

But if you are charging $499.95 per month.. then it would definately be a good deal....

Not all affiliates are customers. :) Offering a free month of hosting is not going to help you get a lot of affiliates.

It is better then nothing, but is not a big incentive for referring your company.

Also, it really depends on your pricing. If you offer $4.95/month packages, then it is not likely worth their time. You're paying the equivalent of $4.95 for a referral? haha.

But if you are charging $499.95 per month.. then it would definately be a good deal....


I would only offer affiliate status to customers and from what I understood WHMCS offered affiliate support for customers only. Well at least thats what I gathered by looking at the demo.

My market will also be local and most likely pricing will likely be in the range of $10-40, depending on packag, so it would be more substantial.

Ohh ok I think I understand now.

Thanks for the great replies :)