Affiliate Classroom Blog

Conversions: Reading the Fine Print

Monday, February 12th, 2007 at 1:23 pm by Matt Van Atta

My last post focused on the conversion rate, and I looked at some factors to consider when selecting a product to promote. A high conversion rate alone does not necessarily translate into high commissions, particularly if the product being sold carries a low price point or a low commission percentage.

When you identify a potentially lucrative product (and carries both a decent price point and commission rate), the prospect of high conversion levels can dance in your head. However, it’s a mistake to jump in and sign that affiliate agreement without at least thinking about other possible factors.

For instance,

The merchant’s commission payment structure can reveal more than just the commission rate. The merchant may insist on paying commissions only quarterly, when you might prefer a monthly payment.

They may also insist that you bring in a certain level of sales before you receive even one commission check. And, once you bring in a new customer, the merchant may insist on “claiming” that customer for all subsequent sales, paying you for only the first sale.

Not all merchants do these things by any means. But the preceding examples illustrate the types of issues you may have to address when you become an affiliate for that lucrative product. There’s also the possibility that the merchant may be a general pain to deal with. (The conflict of personalities is a daily fact of life, after all).

So, you should ask yourself:

Do I have to jump over one or more of these merchant-induced hurdles.

Is the conversion potential of the merchant’s product worth dealing with those hurdles?

Answering those questions requires more than determining the degree to which a product is a “perfect fit” for your affiliate business and your target audience. It also requires research on the affiliate programs associated with the product and the merchants who run them.