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Physical Products Vs. Informational Products

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  • Physical Products Vs. Informational Products

    Have you found that physical products typically come with lower commissions than informational products? Like exotic shampoos versus seminars?

    During my research phase, it sure seemed to me that that was the case.

  • #2
    I'm new to affiliate marketing, but I've noticed that too. Why do you think that is? It seems like it should be the other way around since information products are easily reproduced especially if they're in a digital format.

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    • #3
      That's usually how it works. It might be because most of the educational programs offer a long return window and it's often no questions asked. So the higher commission motivates us to give fair and honest reviews. It's a strong motivator for marketing to the right people, so you can earn AND keep the commission.

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      • #4
        Yes. It's true. If you promote physical products on Amazon for example, your commissions are way lower than if you promote a high ticket webinar for example.

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        • #5
          I have seen that too, but I don't really know why? Why is it that physical products offer a significantly lower commission to affiliates? Am I missing something here?

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          • #6
            Originally posted by Anthony Page View Post
            I have seen that too, but I don't really know why? Why is it that physical products offer a significantly lower commission to affiliates? Am I missing something here?
            It kind of comes back to the costs of producing the products. Creating digital products costs close to nothing if you compare it to physical products. If physical product affiliate programs give away too much commission, they will go out of business!

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            • #7
              Originally posted by Ronald James View Post

              It kind of comes back to the costs of producing the products. Creating digital products costs close to nothing if you compare it to physical products. If physical product affiliate programs give away too much commission, they will go out of business!
              Oh! That definitely makes so much sense, Ronald! I did notice Amazon was offering tiny commissions (part of the reason why I never ventured there...), but I was never able to understand why. Thanks for clarifying that!

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              • #8
                This is one of those "six of one, half dozen of the other" issues. Physical items pay less commission but people, by and large, buy much more of that than informational products.

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