Trends show that both companies and individuals are buying into the gig economy in earnest, with alternate workers such as freelancers, temps and interim managers taking up nearly 20% of the American workforce. Affiliate marketing is playing its part in introducing new trends in how people generate income. For the would-be gold affiliate marketer in particular, earnings can be fairly significant – reaching into six figures for some of the most successful affiliate marketers.
In a recent blog, we covered a few key factors to consider before embarking on an affiliate marketing program. This week, we’ll take a look at some of the different types of gold affiliate compensation schemes, what they entail and how affiliate marketers can choose programs that maximize their earning potential.
Fixed-fee gold affiliate marketer programs
These are still the most widely offered compensation schemes, but offer the lowest returns for affiliate marketers. While a fixed fee of up to $50 per sale generated may sound profitable on the surface, affiliate marketers must consider the rising cost in SEO optimization and other advertising expenses to run an effective affiliate program.
Also, not every click guarantees a sale, so the gold affiliate marketer needs to make every effort to ensure that leads are of the highest quality. Pay per click (PPC) advertising costs can easily stack up when high-value keywords are in demand and affiliates often compete against large corporations with huge advertising budgets who can easily outbid on sought-after SEO keywords.
While fixed-fee programs are still widely on offer, the modern gold affiliate marketer is looking for more flexible options to cover fluctuating costs of running a profitable program. Also, the abundance of programs out there means marketers enjoy a certain level of buying power when it comes to sticking to a program or not.
Percentage-based affiliate programs
The rise of percentage-based programs are giving affiliates far more flexibility and opportunities to increase revenue than in the days of static, fixed-fee affiliate compensation models. A percentage-based program can result in much higher returns for affiliates since the value of a sale can vary from a few dollars to a few thousand.
Here’s an example, if an gold affiliate marketer is paid 10% of a sale to the total value of $5000, it would translate into $500 being paid out to the affiliate, whereas a flat rate structure would have resulted in far less. Add to this that most gold partner programs reward affiliates for repeat sales from customers by increasing the commission percentage and the potential for earnings become significantly high.
Combination affiliate programs
Even better programs are combination schemes which pay affiliates flat rates for leads generated, while offering a percentage payout on successful sales. This structure compensates the affiliate for leads who don’t convert into sales, as it allows them to make up for the loss they incur in PPC advertising.
Furthermore, affiliates can cash in handsomely for leads that do convert based on the percentage payout they will receive combined with the actual total value of their sales.
Combination programs also typically provide incentives for returning customers, meaning affiliates can look forward to payouts based on future sales. Furthermore, some programs allow affiliates to negotiate higher percentage payouts over time, which is usually based on the the affiliate’s performance as a trusted lead and sales generator.
Programs that go the extra mile
Beyond focusing on cash incentives alone, some affiliate programs take a more strategic approach by partnering up with affiliates to ensure the success of their programs. This, of course, benefits both parties since a successful affiliate typically sends more leads in the direction of buyers who, in turn, generate more sales.
These programs may include white labelled websites which affiliates can customize and apply their flavor of branding to along with marketing tools that give insights to how websites are performing. Content such as blogs and whitepapers may also come as part of the package to help affiliates engage their audience and nurture them along the buying process.
Our programs are designed to ensure your success as an affiliate
The Refinement Services suite of partner solutions encompass a comprehensive range tools developed with the sole purpose of helping you strike gold as an affiliate. We go beyond simply saddling our partners with starter packs and wishing them well on their journey. Instead, we partner with you to ensure success from the get-go.
With powerful marketing tools, complemented by expertly crafted content, your affiliate website will become a lead magnet that generates higher conversions figures than other programs on the market. Our compensation schemes start off at 15% and are negotiable to the highest earners, which means you are in control of your earnings – not us. Join one of our leading partner programs today and tap into an abundant source of revenue