Mega Launch Blueprint Joint Venture Commission Rates
What are the commission rates that JVs usually receive? The commission rates are up to the vendors to decide so you will have the full control on the rate.
Bear in mind that the rate of the commission will affect the decision of affiliates on whether to promote your product or not. If the vendors set a rate that is not intriguing, it is less likely that they will get any affiliates to participate in the affiliate program.
When affiliates arrive in the affiliate invitation page, the first thing an affiliate will be looking for is ‘What’s in it for me.’ This is a crucial point that I must stress on because this can be applied to all situations.
When you are writing the affiliate invitation page or sales page, always remember what people want to know. They will stay longer for the pages that can tell them what they want to know.
Back to the affiliate commission rates – you want to set the best rates that are agreeable by the affiliates. Here are the commission rates, which are commonly used by Internet marketers:
- Front-end: 100%
o $297 – 50%
o $497 – 40%
o $997 – 30%
For the front-end product, you can afford to pay them a 100% commission. Really, give out the full payment of your front-end to the JVs. Do not worry about giving it all out, because the mainstream of revenue does not come from the front-end anyway.
When a customer makes a purchase, they will be directed through a sales funnel, as you already know that by now. The revenue comes from the upsells and backend in the sales funnel.
As for higher ticket products, however, it varies. There is no fixed rule here so you can always change the rates accordingly. What I am going to show you is just a reference.
You will not want to give 100% commissions for this. So, if you are selling a $297 product, give out 50% of it; $497 product for 40%; and lastly $997 product for 30%. In the end, the commission rate is still up to you.
However, keep in mind the ‘What’s in it for me’ concept. It is best that you always set an agreeable commission rate. The affiliates deserve that for which they work.
See Next: How to Find Joint Venture Partners