You could reduce affiliate commissions in this email list case because you don't want to pass those extra costs on to your customers – or let them creep into your profits either! For example, if your site is incredibly successful, with a substantial increase in traffic and purchases, the costs of running your site could increase exponentially. You may find that you want to increase your profit margin by reducing affiliate commissions to cover new costs. Since affiliate marketing is generally considered an expense, it's not uncommon for site owners to cut commission rates so they can afford things like better hosting, extra features, scalability, and more.
The market is changing let's say a fierce new competitor comes along, or the market gets particularly saturated and sales slow down a bit. You may feel like you have to reduce affiliate commission rates to accommodate these changes. You increase the email list prices of your products if you increase your product prices, but want your affiliate commission amount to stay the same, you can choose to lower your commission rate percentage to keep your store profitable. For example, let's say you have a $100 product, with an affiliate commission rate of 20%, which means affiliates earn $20 on every sale. Now let's say you raise the price of your product to $200.
You can reduce your affiliate commission rate to email list 10% to keep commissions at $20 per sale. Or maybe you decide to lower your commission rate to 12% on the $200 product. In this case, the affiliate walks away with $24 per sale, which is actually more than what they were earning before. How to handle it once you have determined that a commission rate reduction is appropriate, what should you do next? Here are some of our suggestions:communicate directly with your affiliates the first thing you need to do is let your affiliates know that things are changing and why . It's best to email them directly through a dedicated, standalone email (not an affiliate newsletter) – and being personal never hurts! If you want to build a good relationship with yo