- High commission rate... above 50% minimum.
- Low Gravity... means there is less competition so you have the market all to yourself.
I'm going to tell you to ignore these, because they are based on wrong thinking.
Just to remind you, my Silver Lotto System has a 60% commission rate.
Sure, it's great for income to have a high commission rate of 75% on a $50 product. That's $37.50 less ClickBank costs of, let's say, $5 = $32.50
But unless the product is in demand by desperate buyers, the $50 retail price might be a big barrier to sales.
Look behind that price, for example. You don't know if the owners have set that price high to attract a keen affiliate crowd, hoping that the high price and 75% commission rate will suck them in.
They are simply looking for massive traffic, and in the short term they might get it.
But in reality the market may think the price is too high for the product, and stay away in droves.
I have firsthand experience here...
A couple of years ago I experimented with putting the price of the Silver Lotto System up to $47 from $39.95. That's big pyschological increase, going from the 30's to the 40's.
Sales dropped immediately by over 25%. Even with the added profit from the price rise, there was not enough profit for me to keep it at the higher price. I tried a number of quick promotions which didn't increase sales, and so I quickly returned it to the lower price.
Immediately sales picked up again and returned to normal. Although I only had the nerve to experiment for 5 days, I wasn't willing to sustain such a large drop any longer for the sake of some number-crunching.
The market dictated the price, not me.
So if you were looking at products solely on the basis of a higher price, you might remember that you may be getting less commission than is possible because the product is not selling well - it's facing customer price resistance.
Happy Selling!
Ken Silver
