In order to be successful in affiliate marketing, you need to stick to some rules and principles. One of those is: Look for affiliate programs that pay high commissions. Of course, you can succeed with a low ticket offer, but you’ll need to adapt your strategies to the price range of the product, you’re promoting. Let’s dive in to see what you should and what you shouldn’t do.
What Is Affiliate Marketing
Affiliate Marketing is a business model that allows you to promote other people’s products for a commission. In between, there are different possibilities and further payment models based on the action that is necessary to complete for a commission.
Those models will pay you based on a certain requirement. Some pay per click, per sign-up or the classic one per sale. This is also the one with the highest commission. If you can manage to bring a customer for a product of someone else, you’ll get paid.
The amount can vary from a small percentage up to 100% for promotional products, that lead into a funnel. Usually, digital products have the highest commission rate pending between 20 and 40 percent. Physical products tend to pay lower commissions, because they have higher retention costs, like manufacturing, stock, delivery and such…
For example: Amazon has a partner program, that pays between 1% to max. 10% for every article on amazon.
Why You Should Promote High Ticket Products
Affiliate marketing is always a numbers game. Any product can be profitable with the right strategy. But as lower the product price, the lower your commission, the more traffic and sales you’ll have to make, in order to make money.
Having a high ticket product the same strategy, traffic and conversion rates will logically bring you more money.
Nonetheless, conversion rates for cheaper products are usually higher, because the entry barrier is much smaller. People are more willing to pay for a $10 product than for a $1000 product.
But the point is, you’ll potentially make more money even with a smaller conversion rate and fewer sales if you have a high ticket product.
Let’s promote something in the price range of $10, with a 50% commission. You drive 1000 visitors to your offer and you’ll have a conversion rate of 10%. Meaning you’ll potentially earn about $10 x 0,5 x 100 conversions = $50 earned.
Now you have a high ticket product for $1000 and you get 25% percent commission. Because your product is very expensive your conversion rate drops to 2%. After sending 1000 visitors to your offer you make $1000 x 0,25 x 20 conversions = $5000
What would you prefer? Even with a conversion rate of just 1% the high ticker offer beats the first example by far.
As mentioned this is just a numbers game, and you can try to elaborate on all kinds of different examples. Usually, affiliate programs that pay higher commissions will leave you with more options to promote them.
Why Low Ticket Offers Are Worse
Low priced products usually eliminate the option to promote them via paid ads. Also, you’ll have to drive more traffic to them as to higher-priced products as seen in the example below.
You’ll be limited to drive organic traffic with SEO, Youtube or Social Media because it won’t pay off to drive traffic with paid ads. Meaning that your affiliate marketing business can’t be scaled.
Of course, you can make a lot of money if you are able to drive a lot of traffic to cheap products through search engine optimization or Youtube, but you’ll have to put more effort into.
Stay away from tactics that recommend promoting cheap products, with paid ads. It’s just burning money!
In order to drive paid traffic, you need to be able to spend as much as you can per customer. That won’t be possible if you get a 5% commission, only with higher rates. How much of course depends on the metrics, there are no fix numbers.
Some offers will be maybe able to acquire a customer for a couple of dollars others will maybe need hundreds of dollars, it always depends.
Use Recurring Payment Affiliate Programs
Another great strategy is to promote affiliate products that pay you a recurring commission. That can be the case for software products that require monthly payments, like funnel builder, email software or membership sites.
There are a lot of products that pay between 25-40% lifetime recurring commissions if you provide them with a customer. Use those to build a predictable monthly income to stabilize your affiliate marketing business.
Combine Low Ticket And High Ticket Products
To maximize your results it’s possible to combine both strategies with each other. No matter what your approach is, you should use a funnel to get the most out of your efforts.
When you promote affiliate products via paid ads, you can try to get back on your ad spend as soon as possible. Sometimes it can happen through low ticket offers, to support your high ticket ones.
After a lead subscribes to your email list, don’t send them to a plain thank you page. Show them a “tripwire” product for a couple of dollars, to try to make some returns on your ad spend.
Also set up some emails in your sequence promoting those low ticket products, because people are more willing to spend $7 than $300. Usually, you won’t make back your ad money upfront, except you have a perfect setup, but you can make at least some returns.
Conclusion: Affiliate Programs That Pay Monthly or High Commissions – Ultimate List
Finally having a handful of high-ticket and recurring affiliate programs that pay a decent amount will be enough to make a substantial living. You can take a look at my ultimate list of affiliate products to promote.
Of course, there are tons of different other products from all kinds of niches and industries. Personally I’m using a lot of software product, that I mostly use myself, or that I used before but still would recommend it.
Also, I promote courses and training that I’ve gone through myself. This would be my final recommendation for affiliate marketing. Always promote stuff you believe in and you are using yourself.
Also, I would strongly to check out Clickfunnels, for building your affiliate marketing funnels and also for promotion, because it has the best affiliate program AND training out there! Check out the 14-day free trial.
Take a look at the list by clicking on the button below.