Do I create my own master/sub affiliate system

[akorff]

My partners and I are launching EnterYourHours.com in early September. I'm convinced that this pay-per-month (e.g ASP) software would benefit from an affiliate marketing strategy. We have a very high profit margin, and therefore I can afford to give a good chunk to affilates.

I have three questions and would love to hear everyone's opinion:

1) Should I do it in-house or do everything through an affiliate site like cj? I also own Vazkor Technologies and we've developed some huge e-commerce systems, including affilate marketing systems. So I can develop this In-House. In fact we could even plug all the affiliate data into the enteryourhours.com system, including minutes on site, conversions, and payments.

2) My original thought is to do a master affiliate/sub-affiliate setup. 10% to the sub affiliates and 5% to the master affiliate for the first year. Or I could just do a straight-forward affiliate setup of 15%. Which do you think is better and why?

3) Are affiliates generally cool with getting monthly checks that get cut as the accounts pay their monthly fee? I have no way of knowing what my retention rates will be until I get some good statistical data, but I'm going to (wildly) guess that the average customer that signs up for the first month, will keep paying for 1.5 years, so I figure one customer is worth about 1K to me. However, I don't want to to flat rate it at $150. First, the highest price-plan is $250/mo so conceivably 15% on something like that over a year is much more. Second, I'm worried about fraud and a shady affiliate having his buddies sign up for a month and cancelling, leaving me with a net loss.

Thanks for taking the time to read all that.

[rexiedexie]

I am an experienced affiliate marketer.

To make it worth my while to market any affiliate program I need to be paid at least %50 to cover my marketing costs and to leave me with a profit.

I rarely go through third party affiliate site. They do not pay me enough.

If you are only going to pay 15% you won't get any good affiliate marketrs sign on.

[akorff]

When you say 50%, for how long? Let's say I get a customer who signs up for the $79 price plan? Does that mean EnterYourHours.com would pay you $40/month in perpituity, or for just X months?

I admit I'm new to this, but that seems a little steep. While our profit margins are large, there is still cost for servers, support, etc, and the need to recoup our original development costs.

Does the other experienced affiliate marketers feel that way too?

[rexiedexie]

Originally Posted by akorff

When you say 50%, for how long? Let's say I get a customer who signs up for the $79 price plan? Does that mean EnterYourHours.com would pay you $40/month in perpituity, or for just X months?

I admit I'm new to this, but that seems a little steep. While our profit margins are large, there is still cost for servers, support, etc, and the need to recoup our original development costs.

Does the other experienced affiliate marketers feel that way too?

The biggest cost to companies online is marketing and getting site visitors.

If I choose to promote any affiliate program my costs to do so are high so I would not make money if I promoted any opportunity and only got paid 15%

I would loose money so I would not do this.

One of my main affiliate programs pay 50%-70% join up payment and 10%-25% on any other ongoing payments. The more people I sign the bigger pecentage I get.

This is why I do not join programs through third parties like Clickbank etc.

[marcusofplymouth]

Rexie, what companies do you use as those percentages are really high and I would like a piece of the action too! I currently get 3-30% of sales depending upon the product.

[rexiedexie]

Originally Posted by marcusofplymouth

Rexie, what companies do you use as those percentages are really high and I would like a piece of the action too! I currently get 3-30% of sales depending upon the product.

My Two Main Affliate Programs

World Dating Partners 50%-70%

Go to Singlescrowd.com - Where Singles become Couples Click on Affiliate

Watch a flash/video presentation

The Syndicate Club approx 40% joining 20% ongoing plus prizes

See presentation here TSC 2000 Europe The Syndicate Club Tattslotto Lotto System. Review Information By Rexiedexie
Click on cd and wait 2 minutes