If you are one of the people involved in affiliate marketing, making money online, you will probably often mention the term “Commission”. Understanding the terminology and mechanisms, the commission payment policy of each supplier will help you choose the most profitable product.
The article below will introduce you to the concepts related to the Commission. This is considered an extremely important parameter when you do work related to affiliate marketing and also digital marketing.
I. Definition of Commission
Commission is the income that you will receive when a customer makes a purchase when they click on your marketing link. The commission level will vary, depending on each affiliate marketing program and be calculated as a percentage or a specific amount.
Commissions for each affiliate marketing product can range from a few dozen to several hundred thousand per successful transaction.
II. What is the commission of an affiliate marketing product?
In the field of affiliate marketing, the commission of a product is the amount of money that affiliate marketers will receive when a customer orders when clicking through your affiliate marketing link.
1. Classification by payment form
In affiliate marketing there are two commonly used types of commissions, which are commissions by percentage of order value and commissions by specific amounts. The commission of each affiliate marketing program will be different because it depends heavily on the specified provider commission policy.
- Commission by percentage of orders
This is the most popular way to make money online today, and also the most handy when the provider wants to pay commissions to the referral. The commission rate of a product will be paid for as a percentage of the order or selling price.
Typically, in the form of CPS – the form of affiliate marketing that the supplier will pay you a commission when a customer makes a successful purchase when clicking on your affiliate marketing link. The most important thing is that the customer must make a successful payment and after the payment is verified, the commission will be charged to you.
- Commission is a specific amount
CPO campaigns usually have a specific commission for each product that the affiliate marketer can contact. For example, if you’re an affiliate marketer, you can introduce a customer to buy a mind-in-place product, and you’ll get a specific amount of $4.40 per product.
To earn high commissions, online earners must introduce to many shoppers through their affiliate marketing links.
2. Characteristics of commission by affiliate marketing product
To understand the characteristics of the commission, it is necessary to divide the affiliate marketing product into three categories, which are:
- Physical products
This is a tangible product, existing in daily life that we can easily observe. Commissions of physical products typically range from 3-14% of the product value. These products have a large purchasing power, so even though the commission of each product is not high, customers buy a lot, and the accumulated roses are not small.
- Digital products
Digital products are usually courses, videos, software, online ebooks, and must be used using digital devices such as phones, computers … These products have a high order value, so the commission is also quite high. A successful introduction is also hundreds of thousands. However, the volume of buyers is not much, when to buy.
- Products and services
These are the products that customers will enjoy after registering such as: Buying a tour, booking, opening a bank card. Commission of this type of product is not fixed, depending on the type of service, can be calculated as a percentage or a specific amount.
Affiliate marketing will pay you commission when the customer takes an action to be able to make a purchase, registration, fill out the form… through your affiliate link. The supplier will pay a commission as soon as it confirms that the customer information is real, there is a need to use the product and service.
Learning about commissions will help you find the right product to do affiliate marketing. However, you should not rush to choose high commission affiliate programs, but take the time to see the quality and effectiveness of the product. Besides, you need to consider the supplier’s commission policy, reliability and customer care regimen.
This article presents the basic concepts and definitions surrounding the commission of affiliate marketing products. People who know commissions will give a great advantage and can be applied to reality, thereby making more money from affiliate marketing.
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