The Downside (and Upside) of Promoting Low Price Affiliate Offers
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There are upsides and downsides of promoting low price affiliate offers …
When you’re in the marketplace or browsing affiliate offers you will find a great deal of options. Prices and commissions will influence much of your decisions. To get stuck in this mindset of only promoting high cost products, probably because you like that thrill of seeing big numbers, makes it so you’re not giving options to the little guys.
You’ll probably find more people willing to spend $10 on an item than $1,000.
As mentioned … there are upsides and downsides to it all …
Let’s say you’re an affiliate for Amazon Associates. In the program you generally only make a small percentage of each sale (usually between 4 – 6% depending on your quantity).
On this platform, as you’re more than aware of, you have access to a ton of items. You can find items that cost mere pennies and others that cost thousands.
So then you may be wondering … what’s the point of promoting a product for $10 and only making less than a buck?
Well, it all adds up.
On a program like Amazon Associates your commissions are broken into tiers. The more you sell the higher your percentage of the sale. So when you have $100 at 4% and you cross over that tier you aren’t just earning an extra 2% from your total – you’re gaining 6% from each of those items instead of 4%.
This is based on quantity.
The easiest way to raise your commission tier is by promoting small items that are easy to convert. You can bet that it’s easier to sell a $10 item versus one that’s $100.
You also gain the benefit of having items for cross-promotion.
If you examine your target audience you’re able to break them into separate groups based on their income. Some individuals may not want to spend $97 on an online course. Others might be willing to spend more. By having these options you can appease people in these separate categories.
There’s a chance you could also turn a low spender into a high spender with cross promotion, too, and this is done by displaying value in the inexpensive item and enticing them to take the next step by showing greater value in the higher priced one.
A problem you’ll find when promoting small offers aren’t always about the product … a lot of it stems from the type of people making these purchases.
I would say it’s like the type of people that would rather spend $20 on a pair of shoes which wear out in a year’s time versus someone willing to shell out $200, up front, and have them last a life time.
Basically: You’ll seen to attract the penny pinchers.
There is nothing wrong with these people but they’re the type to often bring some kind of baggage.
Some may be frugal with their money – they’re careful. Then you have the cheap ones. The cheap people will try to get as much value from you well beyond the value of the product. They spend $10 on a product and expect $100 in service. It just doesn’t add up.
So by promoting the smaller offers you may inadvertently attract these low-ballers and if you rely too much on these people you’ll end up burning away a lot of your time and resources keeping them happy.
One other downside of it all is that these inexpensive products come and go quite rapidly.
What’s inexpensive and “hot” right now might be cold and stupid in a week. This means you’ll have to rotate items, constantly. This may be another task that you don’t want to undertake if you’re already busy with everything else going on in the business.
Is it worth it to promote the lower priced items? It really depends on what you want to experiment with in your business. Personally, offering these items are a great way if you’re working with a program featuring tiers and if you want to try more cross-promotional offers. Sure, dealing with the penny pinchers and freebie hunters can get annoying but as long as you can draw a line in the sand where your service stops you should be able to give away enough service without going overboard.
What have you? Are you the type of marketer that likes to blind inexpensive items in their promotions?