You’re looking for the quickest way to build substantial wealth on the internet. And you’ve read many articles which pointed out huge benefits of being an affiliate… a reseller of other people’s products.

You’ve probably been told that you should look for:

A high commission rate. You’ve heard that 50% is the bare minimum, and it should ideally be up towards 75%.
Low competition, so you have the market all to yourself.

So you start searching and find a product that gives a commission rate of 75% on a $ 97 product. That seems to check all the boxes, doesn’t it? After sales and commission costs are taken out, you might be getting as much as $ 60 in your pocket. Well, that’s the theory. But there’s a couple of barriers that might put some flies in the ointment and not make the product that attractive to you:

– The product price might be too high. The product owners might have ramped the price up to make the deal look more attractive for affiliates. But the high price could also be putting buyers off. You need to check that the selling price is realistic for the product.

Here’s an example of how price affects sales: A few years back I experimented with putting up the price of one of my products only to find that sales dropped immediately by over 30%. I had unwittingly broken a psychological price barrier for my buyers, and they responded by keeping their hands on their wallets. Since the increased profit didn’t balance out the drop in sales, I moved back to the original price as soon as I saw the pattern developing. Sales quickly returned to normal.

– The refund rate might be too high. Unless you are sure the product has a top reputation, it might have a top refund rate as well! Make sure that this rate is well below 10% which is normally considered the highest acceptable return rating for digital products. Any higher than 10%, and you’ll probably be seeing a lot of your hard-earned commissions being debited from your reseller’s account.

The secret is not to base your decision solely on high price and a high commission rate. Do your homework by checking out the product thoroughly before you commit to your reselling strategy.

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