Affiliate Marketing

Product Launch Prizes For Affiliates – Should You Be Fair or Award the High Earners

By April 21, 2010 No Comments

The 80/20 principal says that everything in life is an 80/20 split if not more drastic.  Sometimes called Perato’s Law could be best described as:

The Pareto principle (also known as the 80-20 rule,[1] the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.[2][3] Business management thinker Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; he developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas.[3] It is a common rule of thumb in business; e.g., “80% of your sales come from 20% of your clients.”

…thank you wikipedia.

Anyways, this is really important when doing a product launch.  More than likely you will have some great affiliates, and some super affiliates (you know, the big guys who sell the pants off everyone else), and you want to treat them right.  I mean, if you plan to make at least 6 figures I would expect you would give away some great prizes for your hard working people that bring in a bunch of customers.

Lately I have been working with some people doing a product launch and talks have come up about prizes and let me tell you they are pretty awesome!  Things like a cruise, an iPad, etc etc… just generally cool things.  However the conversation has come up that the same people always get the big prizes (ie, the super affiliates)  Granted, going back to our 80/20 principal we know that those 20% of people who win the prizes bring in 80% of the profits, but is it fair to always be rewarding them, or do we need to work on pumping up the little guys so that they feel great about promoting and don’t give up out of frustration.

Really, for myself, I would love the top prize of a car, or a trip or something, however, if I happen to be the top earner then I would probably be making a higher commission than the other people, plus the amount of money I’m raking in for each launch really it wouldn’t bother me too much to give an up and comer a big prize if they did really well.

So one option I’ve heard is doing a raffle type affiliate prize structure.  With that, each time a sale is made the persons name goes into a “bucket” whether virtual or physical. Then depending on how many sales you have the more chances you have to win, and yes the big guys still have a much better chance to be the ones with the top prizes, yet it adds a level of chance to everything making it a little bit more fun.

That being said, here is the question:

If you are promoting a product launch which would you prefer, and are you a big guy or a small guy in the affiliate marketing field?

Author Blaine

Blaine has been the "tech guy for the gurus" for over 5 years now helping build the marketing systems that make people more money. With over 12 years of experience in web development and 5 years in marketing he is able to help anyone make more money.

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