I've never used an affiliate service/network as an advertiser before, but I've been considering using one such as Commission Junction or Tradedoubler, for example, to get more business. I was wondering if anyone has any thoughts on using them, and if they have proven good at sending business your way?

I have an account with Affiliate Future as a publisher, and thought of using them as there are only the two web hosts on there to "compete" with.

As for how much to offer publishers - I thought of around 15%, or to have a sliding scale depending upon what is bought after following a link.

Anyone have any other recommendations?

It all depends on one thing:

Your conversion rate.

It doesn't matter if there are other vendors on the affiliate network - you will still get traffic as long as your payout as decent and your conversion rate is solid.

I am also an affiliate marketer, and I would much rather promote a product that converts in 1:40 for $50 a sale than promote a product that converts at 1:80 for $100/sale.

And by simply adding an affiliate program to the network, you are bound to get some of those web hosting review sites to add you to their list. You might also want to go around and some website owners to start getting the word out about your program.

Does that answer your question?

-Dan

I would much rather promote a product that converts in 1:40 for $50 a sale than promote a product that converts at 1:80 for $100/sale. Why wouldn't it be the same thing?

Because you can hit a higher volume of sales. Later on, after 100 or so sales, you will likely make more off the 1:40 product because there are more chances of random conversion rates lower than 1:40. I guess it could go the other way around too.

So let me re-write my statement:

I would much rather promote a product that converts at 1:40 for $50 a sale compared to a product that converts at 1:100 for $100.

There. Fixed.

Now it makes more sense. Plus, many affiliate programs have incentives going on. It may then be on thing to have 20 sales as opposed to 40.


As for how much to offer publishers - I thought of around 15% If that's recurring, and we're talking about high value packages like say VPSes, it might work. Otherwise, your affiliate program is unlikely to get any real attention other than from current customers looking to make a buck or two by placing at "hosted by" banner at the bottom of their sites' pages.

Now it makes more sense. Plus, many affiliate programs have incentives going on. It may then be on thing to have 20 sales as opposed to 40.


As for how much to offer publishers - I thought of around 15% If that's recurring, and we're talking about high value packages like say VPSes, it might work. Otherwise, your affiliate program is unlikely to get any real attention other than from current customers looking to make a buck or two by placing at "hosted by" banner at the bottom of their sites' pages.

If that's recurring, and we're talking about high value packages like say VPSes, it might work. Otherwise, your affiliate program is unlikely to get any real attention other than from current customers looking to make a buck or two by placing at "hosted by" banner at the bottom of their sites' pages.

When I posted that, I forgot to say about monthly plans. I was thinking of around 15% for yearly accounts.

I guess I would have to give the equivalent of a month or two in referral payments for monthly plans?

I have just set up an affiliate plan in WHMCS for existing customers to use.

Anyway, thanks for the replies so far.

I guess I would have to give the equivalent of a month or two in referral payments for monthly plans? IMHO, if you don't offer at least ~$50 per sale, your affiliate program will probably remain of interest mostly to your customers.

IMHO, if you don't offer at least ~$50 per sale, your affiliate program will probably remain of interest mostly to your customers.

I agree. You need to give people some 'motivation' to promote your affiliate program over the others. Now, if that were 15% commission on all reoccurring charges, you might have some takers.

IMHO, if you don't offer at least ~$50 per sale, your affiliate program will probably remain of interest mostly to your customers.

That's fine for high end shared hosting packages and servers, etc., but what about the lower to mid range stuff? That $50 would leave you out of pocket...

That $50 would leave you out of pocket...

There are hosts that do it nevertheless. A customer's value is in the long run. So if you need to keep him for say 5 years in order to make a profit, then that's what has to happen. You need to keep in mind that with the right measures in place to avoid fraud, affiliate marketing is close to zero risk as you're going to get. You only pay for a sale when it is actually closed. The other advertising methods all involve testing and at times wasting money, continual tracking of ROI based on traffic source etc. Zero risk for you, means that your affiliate assumes virtually all of the risk, and risk demands premium $$$.

For most small-mid sized hosts though, a referral program aimed at encouraging their own customers to speak out, will probably work best. Give them free service in return for sales. When you give them $10 worth of service, they save/earn $10, but it really only costs you $10 minus your typical markup. ;)