Do you know what a commission is?
It is a reward offered to incentivize business results. Usually used to financially reward sellers for sales made.
In this way, you receive a part of the profit generated by the sale, you work your way and you do not need to invest any time in the creation of products, nor monetary investments!
Let’s better understand how a sales commission works!
Sales commission reward is one of the most effective strategies to increase business productivity.
This works both to keep employees motivated and to increase sales and even improve customer satisfaction , keeping in mind that salespeople are likely to try harder on the job.
Therefore, it is important to plan the commission strategy well in companies. That is, it is in tune with the definition of goals and also combined with other types of performance rewards.
A commission may not please all sellers the same way: some may prefer other forms of rewards, such as recognition, travel, and awards.
Therefore, before adopting a sales commission as a strategy, you must carry out tests, understand the preferences of the collaborators and evaluate it from the perspective of the business objectives.
Commissions are the payment Affiliates receive to promote digital products and help Producers make more sales.
Go on and understand this relationship better!
Commission and Affiliate Program
An Affiliate Program is a system that connects Producers (creators) with Affiliates (vendors) in the sales process.
This model, which started with Affiliate Marketing carried out by various sectors around the world since 1990, was consolidated and today took over the digital market, and became an optimal way to work on the Internet.
The link between these two points, the Producer and the Affiliate, is precisely the commission. The Affiliate promotes the product, influences to increase sales and receives a part of the profits. This makes these systems economically viable and very advantageous.
Especially in Affiliate programs in the digital market .
How an Affiliate Program Works
On the Internet, when entering an Affiliate program and choosing a product to promote whether on YouTube TV or Facebook, the Affiliate gets a link to follow the sales they make.
In this way, whenever you promote the product and make a sale, the Producer is notified and the system automatically generates a commission for the Affiliate.
That commission is generally defined by the Producer himself, according to the type of product, the price and what his objectives are with the Affiliate program.
As you can already see, this system works very well, mainly because it is very advantageous for both the Producer and the Affiliate.
Advantages for Producers
Among the main advantages we can mention the following:
- Sell fastly
- increase sales
- More business
- More time to market product
Advantages for Affiliates
Becoming an Affiliate offers advantages such as:
- Have additional income
- Work from home
- Capitalize channels with good audience
- Be your own boss
- Not having to deal directly with clients.
In an Affiliate program there are 4 most common types of commissions that, as well as the commission value, are determined by the Producer according to their own definitions and product characteristics.
They are as follows:
CPA (Cost per acquisition) : It is the most common among the other types of commissions, in this case, the commission is generated only when the customer consumes the product.
CPC (Cost Per Click) – A commission is generated when someone clicks on the Affiliate link. However, that makes that type of commission lower, since it does not assure profits to the Producer.
CPL (Cost per Lead) : the commission is generated when, in addition to clicking on the Affiliate link, the person becomes a lead, that is, a possible client, and leaves their contact details to the Producer.
CPM (Cost per thousand) : Despite being less common, in this case, the Affiliate receives the commission for every 1000 times their ad is shown (impressions).
How to increase your commissions?
You can increase your commissions by becoming a successful Affiliate. For that, you must have more authority and sell more.
Let’s see some tips to gain authority and sell more!
5 tips to gain more authority
1- Create a blog
The first tip is to have a blog. With the blog you will be able to show your online presence and generate traffic with relevant content for your audience. Now it depends whether you create a blog to market Amazon Discount Coupons or you create an ecommerce store with affiliation. Both have profits but need to be optimized well.
2- Perform SEO strategy
SEO or Search Engine Optimization means search engine optimization, which are websites that people use to search, like Google.
SEO strategy helps your blog to be well positioned in the results when someone searches for topics in their niche. In this way, more people will access your content and you will gain more authority online.
Thus, more sales you can make.
We also have complete content on SEO for Affiliates , click and learn!
3- Create profiles on social networks
If you really want to have authority, it is important to have well-worked profiles in the most relevant networks, according to your audience.
You must spend time creating strategies for each specific network, posting frequently, and interacting with people.
4- Expand your audience
If you have worked profiles and you publish frequently, it is enough to apply some strategies to increase your number of followers on social networks. Let’s take an example if you are involving yourself in beauty and skin care products such as Deciem The Ordinary then you have to find the right audience to market the product that is relevant to beauty products.
You can use hashtags, interact with other profiles of influencers, promote contests and boost your posts.
5- Connect with collaborators
Being in contact and / or making alliances is very important to gain authority quickly.
Get in touch with other authorities in your niche to suggest collaborations.
You can invite them to write a guest post, exchange links, record a video for their YouTube channels or carry out some type of campaign together.
Don’t be afraid to appear “cheeky”, just offer something in return and build a relationship with your partners. This will help you grow and it will also be good for your audience.
4 tips to sell more
1- Make ads on Google
Various types of advertisements can be made with the Google Ads tool. You can pay to appear in the first results of Google, Google Shopping, YouTube and other websites.
2- Make sponsored posts on social networks
One way to sell without needing a large pre-audience is by paying for ads on social media.
Virtually all the most famous networks have an ad management tool.
It is important to do a good segmentation, generate quality content and invest correctly to obtain good results.
3- Perform email marketing
Email is essential for sales. This channel allows you to establish a close and personalized relationship with your potential client.
Best of all, there are tools that help you automate the entire email marketing process.
4- Use sales techniques
There are techniques that can help you sell. Among these, we can mention the following:
the mental triggers , incentives for people to buy;
up-selling and cross-selling , techniques to offer, after a purchase, an advanced or additional version of a product purchased by the customer.
You can check everything about tools, techniques and methodologies in our complete publication on sales .
Earn commissions promoting products
You have already seen how Affiliate commissions work and some advantages of this activity.
Were you interested and want to know more about it?
Selena is a blogger and a guest contributor for a well-known brand that includes MESHEBLE & Saveucoupon . In her leisure time, she plays tennis.