Affiliate marketing is one of the most profitable ways to make a full time living online. Over the years and increasing number of product manufacturers and service providers have added affiliate programs to their company. There is also a growing trend among seasoned Internet marketers to only promote the highest paying affiliate programs.
You can become an affiliate
for almost any type of digital or physical product. Most of the companies which offer the opportunity will even have professional quality advertising aids to help market the product. The commission on affiliate programs will vary greatly. On some of the larger websites such as Amazon, you can expect to get around 5% for the average commission. If you are able to generate a high dollar amount of sales, you can qualify for a higher commission.
Generally speaking, you can expect to get anywhere from 5% on the low end from promoting physical products, and up to 75% on digital products. Physical products require space for inventory, packaging, and shipping so they have an overhead which must be deducted from the final sale. Digital products on the other hand do not have these requirements, so they can afford to pay a higher commission.
The amount of time you spend promoting any product is the same no matter what type of product it is you are trying to sell. Many new marketers will start off with affiliate products which are low cost thinking it will make more money because it will sell better.
One thing these marketers are not considering is that in the same amount of time they could be promoting a product which sells for considerably more, and make more money even with fewer sales. If you think about it in this manner, it only makes sense to promote the higher paying products.
Many people are excited to get 50% of a $47 sale, but others would much rather have 25% of a product which sells for $297. As you can see it will take a minimum of three sales of the $47 product to make the same amount of money you would make with one sale of the $297 product. Both of these products will take the same amount of your time and effort to promote. It is for this reason it makes more sense to promote the highest paying affiliate programs.