Affiliate Payout Types, Why Does Percentage of Sale Dominate so Completely?
Writing by Brick Marketing on Wednesday, 30 of January , 2008 at 6:42 pm
When it comes to affiliate payout types, percentage of sale is favored by the vast majority of affiliates and no small number of businesses. Why is percentage of sale so popular? I have a few theories, read on if you are interested and feel free to give your own ideas in the comments.
It works because it is simple. What could be easier than calculating a commission that is based on a flat percentage? Affiliates can figure out how much they are going to get paid and affiliate managers can figure out how much extra they need to charge for their products to maintain profitability. There are some enormous advantages to flat percentages and that is a big part of why percentage of sale is the most popular of all affiliate payout types.
Big sales, small sales, they are all the same. A percentage can be applied equally to sales of any size. If your affiliate rate is 5%, it does not matter if it is 5% of $1 or 5% of $1,000,000; the formula can easily be applied. It is worth noting, however, that there are more appropriate affiliate payout types for more expensive items.
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