Thursday, November 13, 2008

Offering Rebates to Users



Many popular informational/money-making products are searched for by name. For example:“Traffic Secrets” by John Reese is a popular search on Google., because he once sold 1,000 units of thatproduct in one day, at $997.00 each, giving him a $1 million dollar day.

Now let’s say Traffic Secrets pays you a 25% commission ($249) as an affiliate for each sale you refer. If you offered this program to people for a 15% discount off of the regular price of $997.00, don’t you think people would buy it from you rather than paying full price on the official site? The way you can offer this program to people for a 15% discount ($149 off) is by offering an affiliate rebate
.
The program is $997.00 and you make a 25% commission, which is $249.00. Out of your $249.00 you are giving $149 of it back to the customer who purchased through your link, and you are left with $100.00. You simply let people know that if they order the program through your affiliate link, after 90 days you will either
send them a check for $149 or you will pay them by Paypal. Just make sure you require them to send you their receipt. That way you can search your affiliate administration area for their order after 90 days to make sure they didn’t already get a refund. If they did get a refund already, that means your affiliate commission will be taken away from you, so you don’t want to pay someone $100 when you are getting nothing!

You are effectively offering people a rebate for purchasing the program through your affiliate link.While everyone else has ads saying how great the “Traffic Secrets” program is (or whatever program you are promoting), you will have an ad that says “Get a $149 discount off of Traffic Secrets.”

Another thing to remember is that most people will forget to ask you for their rebate after 90 days. That is why you could actually offer an even higher discount to people and still likely come away with a nice profit every time. If you offer a rebate higher than your 25% commission (or whatever amount it is for the program
you’ve decided to promote), you would lose money if everyone remembered the rebate. But in my experience I typically see only 15-20% of these rebates ever being honored, because 80-85% of the people simply forget after 90 days.

The 90 day threshold is important because that is the cut-off date with credit card companies for people to file a chargeback. After 90 days, it would be impossible for them to get a refund, so you know your affiliate commission is in your bank and there to stay.

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