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What is Commission?
Internet Marketing Dictionary | Affiliate
Commission
If you sell a product as an affiliate you earn a commission
on the sale. This can range literally from a figure as low as
1% right up to 100%!
The commission rate you earn per sale will depend in part on
the nature of the product you are selling and in general
information products pay
a much higher commission than physical products because they
are cheap to produce and distribute.
Many internet marketers earn very high amounts of
commission: many thousands of dollars a month. They usually do
this on the back of a good quality emailing list coupled with
an autoresponder.
A typical commission rate on an information product will be
50% but it does vary according to the quality of the product,
the generosity of the product owner and the competence of the
internet marketer. Highly effective internet marketers - so
called Super Affiliates - can request and get higher
commissions than other people because of their ability to sell
a lot of products fast.
One issue with commissions is how they are paid. Some
systems such as Clickbank
automatically calculate and pay commmissions to affiliates.
Other systems like PayDotCom calculate commissions
automatically but don't process payments relying instead on the
product owner to make payments manually via a payment
system such as PayPal.
As an internet marketer you need to ensure that you get paid
commissions due to you and to check whether you are getting
what you have earned it is preferable to have access to a
reliable reporting system. Many marketers however just rely on
trust on the basis that word would soon get round if a marketer
failed to pay commissions due.
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