Non-Paysite affiliate program question
 

Say you have a product that you want to start an affiliate program for. Ok, there have been/are other SIMILAR products out there that claim to work but dont actually work (snake oil). These products have affiliate programs which pay out a generous amount per sale due to the fact that they are getting these products for super cheap and the markup is like 100%. These existing products DONT work. Thats why they are sooo cheap and thats why they can payout what they do...

This new product DOES work and VERY WELL at that, only this product is expensive. It could go for the same price as the "snake oil" products and I will still be making a decent profit but at this price, affiliates wouldnt get much out of it.

Say the "snake oil" product is 60.00 to the surfer where the affiliate is getting like $40.00 per sale. This means, the sponsor is paying anywhere from 1-20 bucks for the product.

The product IM talking about that DOES work costs ME like $50.00 already so if I mark it up to $60.00 to compete I only have $10.00 to work with between my affiliate and myself.

This product should sell itself but I also want to open the program up to affiliates of course.

I know I could markup the product to 90.00 so I could keep 10.00 and the affiliate could keep 30.00 but im afraid that price is too high.

Any input is greatly appreciated.
:thumbsup

test it yourself first. make a page to buy at $60 and a page to buy at $90.

First, though I'll assume you've already tried, try to lower your cost price. Perhaps buying in bulk? If you could get $40 instead of $50, that could give you enough room to work with.

I'd try around $69.95 - $79.95 as a price range if the competition that doesn't work charges $60. $90 is a little too high for most consumers I think who haven't tried your product before.

If you could, say, pay $40 and charge $75, you could offer affiliates $25 per sale and keep $10.

If it really works and there are no pratical substitues, you can justify charging more. You could probably get it.

In your example, why not give affiliates 20 and keep 20. That way you can sell less. Allow for bonuses to high producing affiliates that bump them up to the 30.


If it sells itself, the affiliates will take less.


Good luck and let me know when you get the program running!

I only need to keep 12.00 to be happy. The product DOES work and there is NOTHING else out there that does work. We are looking at soooo many offline orders it's sickening. We will do great online as well but I have to figure out the pricing first. We are buying the shit in bulk already and its an exclusive product only we can get. It's expensive.

I am very intrigued.

Let me in on the wealth!

I will let you all know when we open it up. Should be interesting!

if it's that exclusive, then you'd charge more without any problem, exclusivity sells and it's paid. But I understand there's some similar competition, so I'm not very sure what do you mean

well, good luck

I wish you well

anything we can do- just ask

Ganja, alanI is right. if it's exclusive, you should charge more no prob.

Now on price, trust me, if they will pay $60, they will pay $80. There's also the 'percieved value' effect of raising the price. don't short change yourself.

Your right. If it cost more, it must work better!

In some cases I would disagree, but in this case you are right.

Bumpasaurus

Sounds like you got a strong USP (unique selling point). In that... it works.

Start by testing your price at a LOT higher than YOU think its worth. Sounds silly, but IF the product works and people love it you will sell a shit load anyway - IF THE SALES MESSAGE IS SECOND TO NONE...

You need somebody that could sell sand to the arabs, with the written word... If the quality in the product is there as you say it is... offer a full money back guarantee and the usual stuff.... and you will make lots of sales and still be able to payout good to your affiliates.

I'd love to know what it is, porn is not my forte, but what you are talking about is. ( I don't expect you to divulge any info, but it is interesting).
:glugglug