Since we work with many subscription box companies and their affiliate programs, we often find that we’re asked similar questions from those companies considering starting their own affiliate programs. Affiliate programs are a great way to grow and increase your customer base by encouraging others to share and promote your subscription box.
The following are some of the frequently asked questions we get with regard to affiliate programs.
Why should we join an affiliate network? Isn’t it just taking money from my bottom line?
Affiliate networks are a great way to expand your reach and customer base. It’s a way to market and grow your business by gaining visibility with your affiliates’ audience and followers.
One of the great things about affiliate marketing is that you only pay for results. For example, we heavily promote our box partners on our site, on our social networks, in our newsletters, and in search results. We invest time, resources, and money to promote our partners, but we only get commissions on actual sales. You could spend thousands of dollars on a direct mail campaign but never generate a sale.
So to answer the question, no, it’s not taking money from your bottom line, because affiliates are helping to generate sales you might otherwise not have gotten. You’ll make more money and make more sales when you have a strong affiliate program and partnerships. With affiliate programs, you don’t pay us anything unless we make you money. We both win. :)
Do you recommend a specific affiliate network?
What’s the typical payout/commission?
The commission box companies offers varies based on the box company and the box price. Typically boxes offer either a percentage of sales or a fixed rate per sign-up or lead.
Percentage based payouts are based on the sale and are usually between 10% – 40%.
Lead or fixed-rate payouts are usually offered per lead/sign-up and range from $5-$30.
Ultimately, you need to decide what commission fits within your company’s business strategy. In general, companies that reward their affiliate partners see higher conversion rates.