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  1. #1
    Join Date
    Apr 2006
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    35

    Affiliate Program -- How to offer?

    Hey,

    My company is getting ready to finish a affiliate program, but I have to know one thing. How much is too much and how much is too little?

    My original ideas for this would be that we would pay 50% of the 1st month of hosting that the customer pays. We determined this would not work with any of the scripts we have tried, as we also offer other payment options such as quarterly, annually, etc. So now I have come up with two alterntives, but are they enough?

    Plan 1: Offer 10% of the bill with recurring option ON, so they will be getting 10% of the payment EVERY month/billing period.

    Plan 2: Give the referrer $1 regardless of the payment amount/plan/billing period. So you refer 10 people you made $10... Of course with this, payout would be like $5 or $10....


    Maybe if niether of these work, then a variation of the second? Such as $2, or even $3 for ever referral? The only problem tho, is that my company offers 99 cents hosting, so we would be losing in the short term... but I guess the long term makes up for this?

  2. #2
    Join Date
    Feb 2006
    Location
    Swellyville
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    This is sort of a financial choice for you here. It really all depends on what you are willing to pay out to your referring customers. First off is the affiliate program ONLY going to be for current customer or can anyone sign up?
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  3. #3
    Join Date
    Apr 2006
    Posts
    35
    This program will be for ANYONE as that would be the best descision business wise as you draw more people...

    Heh, just noticed i messed up the title.. I meant to write "How much to offer".....

    Too late now.. lol

    Anyways, the more I think about it... Plan 2 would draw more affiliates, while being a bad short term investment as I would lose quite a bit of money.... but then in the longterm, I make that and more back... So technically, I have to lose more to make even more... Or so it seems right now...

    I am starting to favor Plan 2 with a $2 per referral the more I think about it, but I still would like input please.

  4. #4
    Join Date
    Feb 2006
    Location
    Swellyville
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    Well maybe for your customers you may want to suggest an account credit as customers always like to have discounts or even a month free! That will make for a good experience and happy customer, also it will make the other customer (new) want to refer more business your way

    As far as anyone else, a commission would be good, but you may not want to make it too high. Maybe $15-25 per sale? Also you should have something for individuals that can bring in large amounts of customers.
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  5. #5
    Join Date
    Apr 2006
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    35
    I think $15-25 would be a little too out of our budget for the time being...Maybe as our customer base grows bigger, but at our current customer base we need to conserve money. I currently have a 10% off discount, and also a 50% discount which is actually used on sites I advertise on... I will however be adding the details of that discount to my main web site for more views.

    Would you say $2.50 a referral is enough for now? Or is that TOO little?


    PS. Thanks for these quick responses!

  6. #6
    Join Date
    Feb 2006
    Location
    Swellyville
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    That is a bit too little IMHO. However if that's what you can afford at the moment..something is better than nothing. However, you may have far less sign ups. Although, your customers will love the credit (as you stated, your budget would be more suitable for account credits.)
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  7. #7
    Join Date
    Apr 2006
    Posts
    35
    Okay. I will try to make/find a discount system... but another thing: When paying per referral, should I set it based on when I will start making a return? For example: If I was to set it to $15 a referral and some referrs another person to my $0.99 plan, then it would take more than a year to start making that money back.... While on the other hand, if it was 15$ and they signed under my Accelerated plan (4.95/mo) then I profit in approx. 3 months...

    Hmmm....



    edit: I have to leave for now, but thank you for the responses.... If you respond to this message, I will read it later...
    Last edited by Zhamoret; 12-16-2006 at 11:49 PM.

  8. #8
    Join Date
    Feb 2006
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    Swellyville
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    I wouldn't allow your affiliates to refer people to these plans. Make sure you make that clear in your TOS or your affiliates sign up page. You can set the plans with your affiliate script on which you wish to process to that particular affiliate.
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  9. #9
    Join Date
    Apr 2006
    Posts
    35
    Ahhh... Okay, I forgot all about just omitting these low priced hosting solutions.... Instead I was worried on how long it would take to remake it.. Thanks again for all this help you have been very helpful!!

    Also, we have implemented your Account Credit idea and worked out how we will use it in conjunction with our ClientExec. Thanks!

  10. #10
    Join Date
    Oct 2002
    Location
    EU - east side
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    I meant to write "How much to offer".....
    Edited.

    "How much to offer".....
    One way is to imagine yourself trying to make a living off your affiliate commissions.

    Another thing you take into consideration: when you set your prices, did you take into account the advertising costs you will have to cover? One can price his services so low, that he finds it impossible to profitably advertise his business.

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