When promoting affiliate products you will see a number of statistics and abbreviations pop up time and time again that can be confusing to beginners.
If you understand what these mean, however, you’ll have a much easier time finding the best products to promote, increasing your chances of success as an affiliate marketer.
This post outlines the five most important statistics you should look out for when evaluating an affiliate product. You can find out more about how I earn regular commissions from selling affiliate products here.
Commission Rates For Promoting Affiliate Products
One of the most important statistics when promoting affiliate products is the commission rate. You want to be promoting products that will give you a good commission rate so you can earn more money.
There are many other costs associated with running an affiliate business (website hosting, domain name registration, email lists, etc.) so you need to make sure that you can stay profitable with a high enough commission rate.
Commission rates generally range from 25-to 75% depending on the niche. For example, it’s pretty easy to promote health and fitness products with such a high commission rate because people typically have to buy healthy food if they want to lose weight or tone up their bodies.
One of your biggest expenses as an affiliate marketer is shipping products out to customers. If a customer decides they no longer want or need a product they ordered, they’ll request a return and you’ll have to pay to ship it back out.
Be sure you have a clear return policy before offering products for sale that can be returned. Not only will having one show customers that you’re trustworthy, but it also makes it easier for them to know how much time they have if there’s ever any issue with their order or refund.
If a customer is not satisfied with their purchase, they can always request a refund. However, if you haven’t set up a solid refund policy, they may be disappointed in your product. You need to make sure that your company has some sort of guarantee or money-back guarantee in place to avoid any disputes.
Also, think about what it will take to get them their money back and how quickly you will be able to process it. Maybe you can issue gift cards instead of cash refunds so that people have something left over if they don’t want to go through all of their products at once.
This way, your customers are happy with what they have as well as possibly another product from your company later on down the road.
Customer Service When Promoting Affiliate Products
This is important as your customers will need to get in touch with you if they have any questions or issues. All good companies strive to provide first-class customer service and that’s exactly what you should do when it comes to promoting affiliate products.
The thing with affiliate products is that you don’t sell them; someone else does, so you want to make sure that those selling them are doing a good job of it.
If a product has high reviews and good ratings then it’s a good idea to promote it, however, if there are lots of negative reviews then you may wish to avoid it as even one bad review can have an impact on sales.
The cost per action rate is a number that you need to know when promoting affiliate products. This tells you how much you’ll make on average when one of your ads results in a sale or any other action that may bring you revenue.
For example, if someone purchases something after clicking on your ad, but they end up buying something else once they get to your site, then you would still earn money from that purchase.
However, it wouldn’t be counted toward your CPA because there wasn’t just one action from one click.
Similarly, if someone purchased something from your website and also signed up for emails about new deals—that would count as two actions because signing up for an email is considered a separate action from actually making a purchase.