Dear Affiliate,
I have bad news for you: You are probably losing money and you didn’t pay attention to it! Let me explain…
When you joined affiliate programs you probably considered the following factors:
– The commission
– The conversion rate
The profit formula looks like a child play: Commission x Conversion Rate = Your Profit
In fact there are three big pitfalls here and if you don’t manage them properly, your profit is at risk. Let consider them:
– Price: A high price means a higher affiliate commission for every sale but it may result also in a lower conversion rate If the product is too expensive, nobody will buy. You shouldn’t be blinded by the promise of a very high commission. You should keep in mind that the best price is not the one that gives you the highest commission but the one that makes the highest profit. An optimized pricing that makes satisfied customers and satisfied affiliates is what you should look for.
– Refund Rate: Refunds can kill your marketing efforts! What are worth the sales you see in your account if customers request their money back? A lot of...
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