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Cheap Affiliate Products: Are They Worth Promoting?

Steven 3 responses Internet Marketing
4

Quick! Which would you rather have, 10,000 dimes or 1000 one-dollar bills? You might say it doesn’t really matter because both equal $1,000 and either way you’re going to need a very large, sturdy bag. Well, you’re half right. Either way you’ll end up with the same amount of money. But the real answer is: It depends on how hard you have to work.

All affiliate programs are not created equally

At first glance it might seem like it makes more sense to promote a high-dollar item. After all, at 15 percent commission, you’ll make $1.50 on a ten-dollar item and $15.00 on an item that sells for $100. But here’s where it gets tricky…

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Buyer perception

People will pay $1 or $5 for just about anything, without even batting an eye. It’s pocket change to most people and they don’t even realize they’ve spent it. In fact, in most cases, you’ll get the same reaction if the product costs $9.99 or $19.99. The buyer thinks, “Well, it’s less than $10” or “It’s less than $20” and again, to many people, that’s pocket change.

It would seem relatively easy to sell a lot of $5- items but remember, your commission will only be around 75 cents. In order to make $1,000 in one month you’d have to sell 1,333 items. The average online conversion rate is around 8 percent, but even if you managed to get a 10 percent conversion rate you’d need to drive 13,333 new visitors to your blog every single month to maintain a consistent income. And that’s being generous.

On the other hand, if you were promoting a $100 product with a 15 percent commission, you’d only have to sell 67 items to make $1,000 in commission. That’s a lot easier, right? Not necessarily. At that same high conversion rate of 10 percent you’ll need to bring in at least 670 new visitors every month. But it’s not quite that simple.

When you get over that $20 mark people are a lot more hesitant to open their wallets. Promoting a higher-priced item means your content has to be stellar and you have to learn how to pre-sell your visitors before you send them to the advertiser’s sales page.

And what about that sales page?

Once you send your visitor to the advertiser’s sales page, the advertiser takes over to close the sale. But most advertisers are just regular people, just like you and me. Just because it’s a sales page and it looks like a professional design doesn’t mean it’s going to convert any better than your squeeze page.

In the end, it’s not about the difference between small payouts and large payouts. It comes down to your ability to generate a large volume of highly-targeted traffic, regardless of the price of the item you’re promoting, and once you learn how to do that it’s simply a matter of rinse and repeat, rinse and repeat. Many affiliate bloggers have dozens of blogs promoting a wide variety of products across all price ranges.

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3 Comments

  1. Sherman Smith

    Hey Steven I just figured this out a couple of months after 3 years of blogging and being in business. Slow learner but at least I still learned. Thanks for sharing!

  2. Justin Dupre

    I’ve made $50k+ a month on $1.50 payouts. Yes… it’s very worth it!

  3. Another good reason to aim for “the 10 dollar item” is that the competition will be a lot lower that for the “1000 dollar item” :)