High commission products either have much larger commission structures or a higher cost, or both. Digital products for example will pay much more than physical ones in terms of percentages. But even with a high cost physical product you can earn a lot more than with a low cost one. Take this high end product for example:

The flying hovercraft sells for $190,000 and pays affiliates 8% commission. That’s a commission of $15,200 if you can sell one. Let’s Compare this to a $100 product from Amazon which only pays 4% commission. You only earn $4 per sale for the $100 product. So you’ll need to sell 3800 of them to earn the same amount as for the flying hovercraft.

While not many people are in the market for a flying hovercraft, (in fact considerably fewer people than might be interested in the $100 Amazon product), it illustrates an important point about affiliate marketing. It might be more difficult to sell the high end product, but it won’t be 3800 times as difficult! So it pays to find these kinds of products if you’re an affiliate.

Digital Vs. Physical Products

Digital products typically pay 30%-40% in commission from a sale. Compare this to the normal rate for physical products (1%-10%) and you see a massive difference. Digital products have far fewer costs attached to their sale. There’s fewer manufacturing costs, and no handling or delivery costs. You can access them over the internet for free. These savings are passed on to the affiliate marketers who refer them, since advertising takes up the largest costs of selling them.

So digital products pay more and therefore it’s a good idea to find high commission digital products which also carry a high cost and deliver a high value offering. High value digital products are things such as digital marketing training courses, online business support and mentoring, coaching and one on one affiliate marketing coaching.

Here’s a few online business tutoring packages available, (learn more here) :

Why Choose High Commission Affiliate Marketing?

Choosing high commission products can give you a head start as an affiliate for a number of reasons. With low value products, it’s much more difficult to use paid advertising because there’s less scope for profit. When you’re a beginner especially, you’ll be learning as you go. (see high paying affiliate programs for beginners)

If your product only gives you a small commission, this limits your ability to test out advertising methods. If you only make $100 commission from a sale, you’ll need to spend less than that on advertising to come out with a profit. This is very limiting. But if your product gives you a $1000 commission, you’ve got a lot more room for experimenting.

Paid advertising gives you instant feedback too, and is easily scalable. With cheaper marketing methods such as blogging or content creation, you have to put in a lot of work upfront, and you won’t know how well your content is doing for some time. It’s also much more difficult to scale organic traffic through content creation.

Summary

High commission affiliate marketing is definitely a good idea if you’re going to become an affiliate. With a high ticket item, you still face the same challenges as other affiliates. But you can quickly recoup advertising budget and scale to a larger income more easily when you have a high commission affiliate program.

With a low value offering, you can get stuck with cheap and free marketing strategies which are incredibly competitive. Content marketing is far less scalable than paid marketing. To use paid marketing is much easier when you have a high value offering which ideally includes a product range and also subscription affiliate products which pay you a recurring income.

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