How much commision to give affiliates?
Hi,
I found an opportunity to create a SaaS program for a niche community of ecommerce sellers (6500 sellers only). I know they're desperate for a solution, and I was able to work one out in 2 weeks.
The community head wants to sign an affiliate deal with me where he gets 15% of revenue for every user he brings in - for life.
Now, on one hand I wouldn't know how to suggest the SaaS solution to this community without him. On the other hand, 15% for life seems unfair to me when he only makes a few Facebook posts and 1-2 webinars with me.
What do you guys think? Thanks!
Raise your price so that the 15% doesn't really make a difference?
But in all seriousness, sales and growth is always the hardest part of any business. I see affiliates for anything between 10-50%, it's not all life time of course. At the end of the day it's whether you can make a viable business with that percentage and adjust prices accordingly.
And typically in these scenarios, people have invested years into trust and community building, so it's not just 1-2 webinars and a few FB posts. It's the trust that has been built up.
I definitely do see the value of community-building and the big role that this affiliate plays in the success of my product. A "life-time" deal just sounded unreal to me at first, but then I found some pretty popular products that have such arrangement, like ConvertKit and GetResponse (give 30-33% commission for life, each).
Raising the price isn't a bad idea. I'll try to negotiate with him the rate for a little, if he doesn't want to move a single percent I'll probaby still sign 🤷🏻♂️.
Thanks!
I've seen a lot of people offer even more. 15% is not unfair to me if you both make money.
The key here is that he wants this deal for a lifetime - 15% from now for good for every customer he brought in. I see that most sofwares usually give commission for a limited time, so this didn't make sense to me.