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Originally Posted by Webmaster Advertising
Then you shouldnt have opened a program 
To many programs are opening up without the owners being able to subsidize their own traffic/sales thinking that they can just throw a tour and a members area together and affiliates will make the money for them.
If you cant generate sales to your own sites then dont open a program because you are basically screwing your affiliates over for your own ends and in the process diluting the profits of the rest of the industry, there is a reason traffic is down at many of the largest programs that have been around for years, that reason is it became far to easy for people to launch thier own program with no knowledge of how to generate traffic or sales of their own. |
Pure affiliate marketing without self generation is certainly too expensive. I agree, if you can't market a high percentage of your own sales, you are not going to be profitable. Food for thought:
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Percentage of gross sales/revenue:
This is probably the simplest method. Most experts recommend somewhere in the range of 2-8% of gross sales. McKinsey & Company is often quoted at 5%.
Most small businesses (less than $5 million gross revenue) should shoot for at least 7-8%.
Industry-specific:
Many industries have their own standard. For example:
* Consumer package goods: Up to 50% of projected net sales to launch a new product
* Industrial B-to-B: 1% of gross sales
* Retail: 4-10% of net revenues
* Banks/Credit Unions: 2-5% of assets
* Law firms: 1-4% of gross revenues
* Pharmaceuticals: Up to 20% of net sales
* Hospitals: 1% of net revenues
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