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unreviewed
Joined: Dec 07, 2000
# Posts: 6776
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Posted: 2003-Jun-05 08:19
This question is related to "getting" affiliates to signup. I've notice there is almost always a minimum pay amount. What I'm wondering.. is that so standard that it's just expected? And would removing or lowering minimum pay outs help to increase signups?
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visitor
Staff
Joined: Sep 06, 2001
# Posts: 620
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Posted: 2003-Jun-06 19:24
Hello unreviewed
is that so standard that it's just expected?
Hmmmmm...I'd be more comfortable in saying that the minimum pay amount is so standard that it's just 'accepted.'
would removing or lowering minimum pay outs help to increase signups?
Strictly speaking out of my personal perspective (aka no stats to back up my claims)...
Comparing $25 and $50 minimum pay amount, I'd say lowering the minimum pay amount to $25 from $50 would increase signups, especially among your usual small-time affiliates. I prefer not to generalize or categorize my customers, but by the nature of the business, there are small-time affiliates among your network. Small-time prospects, in most cases, are aware of their capability...meaning that they understand the limit of their reach and conversion ability. For this reason, many small-time sellers will join multiple programs to maximize their earning potential by offering more products/services.
For small-time prospects, lower minimum pay amount can have the appeal as the chance of the 'instant gratification' is higher with lower minimum pay amount. Though I will have to argue that the minimum pay amount probably doesn't play a major conversion factor role in signup conversion; naturally, a good commission rate usually does the trick (considering that the prospect see a good fit between the offered product(s) and his/her site)
Promo incentive is an attractive feature for the other side of the coin, the big-time, power-sellers. Power-sellers are well aware of their ability to convert the traffic to $$$ and would react positively to well-structured incentive promo. And really, if a guy/gal brings in +100 sales, wouldn't you want to keep him/her happy? (as from the customer focus perspective?)
HTH
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bhartzer
Staff
Joined: Jun 08, 2000
# Posts: 7042
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Posted: 2003-Jun-06 19:31
For small-time prospects, visitor is exactly right: lowering the minimum pay amount might get them to sign up. But, if they're actually a small-time prospect, would you want them as an affiliate? They may not be as productive when it comes to conversions.
What can make the difference for larger, more productive affiliates is better commissions for increased referrals. Or just a larger commission. Instead of 10 percent, increase it to 25% or 30%.
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unreviewed
Joined: Dec 07, 2000
# Posts: 6776
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Posted: 2003-Jun-06 20:06
That is actually what I wanted to hear.
Next question, the percent... I can afford 20 percent, but am now offering 10 percent. Again, would the increase to 20% make that much of a difference, or would I just end up giving away to much, in relation to the "hoped for" increase in signups?
In other words, do you think a higher percent actually increases signups? This seems like such an obvious question, that the answer would be yes... but I'm not convinced.
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bhartzer
Staff
Joined: Jun 08, 2000
# Posts: 7042
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Posted: 2003-Jun-06 22:23
You only can answer your question by testing. I would raise it for a week to 20 percent and measure the number of new signups. Then bring it down to 17 percent for a week. If you're listed in an affiliate directory where people can "shop around" for affiliate programs, then they may be looking at your competitors' programs to see what they offer. You might want to compare the percentage to what your competitors are offering.
Also, make sure you test the days of the week, as well. You'll probably find that people who sign up for your affiliate program during the week will be much more serious and make you more money than people who sign up on weekends.
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darkblue
Joined: Eons Ago
# Posts: 13
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Posted: 2003-Jun-13 07:22
just to add to what bhartzer has already said. If you are in an affiliate network it is usually much easier for affiliates to compare programs. But I would not be thinking of the increase as a good way to increase affiliate numbers, rather use it as a way to keep you current affiliates happy. An increase in commission will yield an increase in affiliate earnings and this is what the affiliates are ultimately after. You'll find it is more economical to keep current affiliates than look for new ones.
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Silv
Joined: Aug 10, 1999
# Posts: 1668
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Posted: 2003-Jun-14 04:37
In reference to the $25 minimum.. that always seems like a good amount to me (as a publisher). $50 and $100 payouts.. I have to strongly consider if I might be throwing that money away -- too many affiliate programs have closed on me 'just' before I've reached a payment amount.
If you have a normal 'consumer' products - I would also strongly consider lowering your limit around the November - January months for 'Christmas' shopping. You'll aquire a bunch of new affiliates during that time because they aren't afraid to dig in with the lowered minimum .. and if your program works out for them they'll definitely stick around.
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"Netpreneur"
Joined: Eons Ago
# Posts: 2
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Posted: 2003-Jun-26 22:24
Minimum payment amounts are the merchants way of trying to get as much free profit as possible. Think about all of the programs with $100 minimums, they make an absolute killing from underperfoming affiliates who only make a sale or two before folding.
In a sense, minimum payouts act as a filter, weeding out the affiliates who have nothing to offer the program.
(no signatures please)
[ Message was edited by: "Netpreneur" 06/26/2003 02:25 pm ]
[ Message was edited by: bhartzer 06/27/2003 12:14 pm ]
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Silv
Joined: Aug 10, 1999
# Posts: 1668
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Posted: 2003-Jun-27 04:29
Minimum payment amounts are the merchants way of trying to get as much free profit as possible.
I think you could say that of a program with a high minimum (such as the $100 you mention) but with more reasonable amounts ($25 or so) - I don't think that's the case.
Really - I think a program has to have SOME minimum, or they'll spend too much on admin costs like cutting checks. Even on a low volume program, I'd rather get a $25 check every few months than see a $3 check ever.
I'm sure that almost all programs have made a few bucks from affiliates that quit or never reach the minimum - but I just don't think it's a majority motivation.
I will say this, though. Affiliate programs that close should lower their minimums to somewhere around $5 and pay up before disappearing. That's when it truly bugs me.
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cashenterprise
Joined: Eons Ago
# Posts: 56
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Posted: 2004-Mar-19 05:53
I disagree alittle Silv. I would rather get a 3 dollar check every month then get one $25 dollar check. I tend to like programs that offer lower payouts. I think $25 is reasonable. However I believe the reason for miniums of $25 or more has to do more with the inhouse expense of cutting and sending $2 and $3 checks. Then it does with reputable companies trying to get free labor. I am sure there are companies that practice the minium technique as it was described by netrepeneur however I feel they are in the vast minority.
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webvideo4u
Joined: Mar 20, 2004
# Posts: 23
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Posted: 2004-Mar-31 09:32
Why not let your affiliates decide when they want to be paid? After all you're trusting them to promote your company so why not trust them to act responsibly regarding payment? This includes both the ammount they get paid and when they want to get paid.
I understand the administration costs of sending out small cheques but for every cashenterprise there will be a Silv who wants to be paid larger cheques less often.
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cashenterprise
Joined: Eons Ago
# Posts: 56
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Posted: 2004-Apr-04 09:22
Make no mistake about it webvideo4u, I would run my affiliate program with a reasonable minium it just makes sense. However, I would prefer no minium if I were the affiliate mainly because I would like knowing I could have my money whenever. However, most people who request those little checks are not ever going to do enough to pay for the cost of sending the checks. Most will not ever hang around the program. An arguement may be made that if they were to recieve the smaller check than they may be motivated to work harder for more money. However, my opinion is that that rationale would most likely prove to be untrue.
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webvideo4u
Joined: Mar 20, 2004
# Posts: 23
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Posted: 2004-Apr-07 09:43
I think it invariably depends upon the type of program you're running. If its a program where you have many hundreds of affiliates it may well be difficult to administrate.
However if you are handpicking a select number of affiliates to work closely with then more flexibility can be put into the relationship.
One thing I would like to see more programs do is pay all affiliates once their program ends and there are affiliates who havn't reached any payment threshold in place.
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tonychel
Joined: Mar 23, 2004
# Posts: 6
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Posted: 2004-Apr-07 13:42
If you have killer product, it doesn't matter what is your minimum amount of
payout for your affiliates.
If I will be an affiliate owner, I'll used either Paypal or Stormpay
for paying them and I could easily transfer funds anytime they want to.
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