| Top Paying Affiliate Program |
| By Pulsar Marketing |
Published
07/12/2007
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Affiliate Tips
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Pulsar Marketing
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Articles by Pulsar Marketing
How to choose the top paying affiliate program
What is the top paying affiliate program? It's not always the highest paying!
The highest paying commission rate is not always the top paying affiliate program. How can this be? Because there are other factors involved. Example: What good is it to be the partner of an affiliate program that pays $100 per lead or per sale if you can't generate a single lead or sale with it, or if it's very, very hard to generae a lead or sale? Did you know that you can actually get richer, quicker, by being a partner of an affiliate program that pays low rates instead of high rates? Yes, you can, if those low rate programs are easier to earn leads and sales. The forumala for deciding which affiliate program makes the most money for you is called the Conversion Rate. Here's how to calculate the best money-making program:
Let's compare two affiliate programs. Program ABC pays $100 per lead and Program XYZ pays only $10 per lead. By seeing how many clicks (visitors) it takes to generate a single lead (conversion), you can project which program will make the most money overall for you.
| | Program ABC | Program XYZ | | Payout Rate | $100.00 per lead | $10.00 per lead | | Conversion Rate | 1 lead per 200 visitors | 1 lead per 10 visitors | Estimated Earnings
Per 1,000 Visitors | 1,000 visitors divided by
200 = 5 leads
5 X $100 = $500 | 1,000 visitors divided by
10 = 100 leads
100 X $10 = $1,000 | | Top Paying Program? | No | YES |
As you can see by the example above, the XYZ Affiliate Program makes the most money even though it offers the lowest payout rate. In fact, it makes TWICE the money but pays only one-tenth the amount. How can this be? Because this program has an easier product/service to sell, or has a more appealing website, or charges customers less, or any number of other factors. Whatever the reason why, it simply makes more money for you than the program that pays 10 times more. Amazing? Actually, it's not. In many cases the affiliate programs that pay the highest top rates are doing so because they don't produce as many leads or sales as similar programs. So the lesson to you is NOT to choose an affiliate program solely upon whether or not it has the top payout rate over similar programs. You need to compare the conversion rates, and how much money overall you make per 1,000 visitors (or per 100 visitors).
Why some low rate programs make more money than top paying affiliate programs:
*The program's website is more appealing.
*The program's purchase/application form is shorter.
*The program's product/service costs less.
*The program's company is more well-known.
*The program has more reliable tracking and/or integrity.
Let's examine that last reason... more reliable tracking and/or integrity... It's disappointing, yet it's true that there are some affiliate program networks that have substandard tracking software and/or who cheat their affiliates. Catching a scam, cheating affiliate network can be difficult. One clue is if you get higher conversions for the exact same program at other networks.
Another "Top Paying Affiliate Program" factor is your own website and the traffic it attracts. Whether or not a particular program converts better for you than an identical program, could be the type of people visiting your website. Let's say; for example, you are comparing two credit card affiliate programs. Both are for the exact same credit card, but one link goes to a pink-colored landing page and the other program link goes to a gold-colored landing page. If the program link to the gold landing page performs better, it may likely be because your visitors prefer the gold color over the pink color. Perhaps most of your website visitors are men?
When choosing the top paying affiliate program for you and your website, there are many factors to consider and not simply the payout rate. The conversion rate will tell you; without prejudice, which program will make more money for you overall.
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