we're looking to launch an affiliate program shortly

now I've promoted my fair share of OTHER people's stuff in my days, but this will be one of our first major affiliate programs

most of the items we sell are between $20-150

The most popular being $40

I'm wondering that % to offer affiliates

i don't want to offer anything too low (like 10% or so, as i myself stay clear of those cheap programs ), but i don't want to offer 50% either if i don't have to.

I'm eying the 25% mark right now

I just wanted to hear from those of you who do promote OTHER people's programs - do you have a % that you look for when evaluate affiliate programs to promote?

How does %25 sound to you?

If i said "here is our product - it costs $40, if you refer a sales to us we'll give you 50% commission" or "25% commissions" , keeping all other variables the same (your vies of the product, how it relates to your sites, etc) would have any more of an incentive to promote it at 50% vs the 25% mark? if so how much more?

you could start at the 25% (which is think is just fine as it not many sites these days that will offer that high a % for referrals) and then maybe say the % will go up as the affiliates get more referrals or something like:
1-10 = 25%
11-20 = 30%
21-30 = 35%
Or what ever you want to do for the numbers.

But yes personally I would be very happy to sign up for 25% just to place some links, banners and what not on my sites and sigs etc etc

Also I would look at the competition to see what they offer, and try to just over bid them by say 5% and make a not of it in your affiliate page

the competition - that's a good point - they main competition offer pretty weak % - most are in the 5-10%

about your tiered system, yes i was also thinking of implementing something like that. Another reason i'd like not to offer too high a number off the bat, is i would like to broadcast special deals to affiliates from time to time (wake them up a bit) - for example say "next week we'll be offering 50% to all affiliates instead of 25% so get you butts out there" - just friendly reminders and incentives

I always think about the possible conversions. If the products looks like great seller I don't care about commission rate. It the product is only good, commission is more important. If the product is not good, I would never sign up for such affiliate program even if the commission would be 100%.

It depends on the product you sell. Sex toys are generally 25%, computers and electronics are 2-3%, most else is between 8-15%.

So it comes down to the profit margin of your products, and cost of delivery.

My caricature affiliate program offer 15% up to 15% on higher sales per month.

Don't forget that launching an affiliate program means a lot more work for you, they need, and deserve good support. I won't get on that hobby horse!!

Cost of sale
-------------------   *   100%
Retail value

Basically, your affiliates are doing the legwork for you, so if it costs you $10 to sell a $40 product, I'd expect you to pay no more than this to your affiliates (eg 25% in this case)

However, be wary of large commissions; it shows you have a high basic profit margin, which could be seen as being greedy - something you don't want buyers to be aware of

The more affiliates can make the more incentive hey have to promote your product over a competitor. In addition to considering % offered, conversion rate, and you need to think about the base cost and offering coupons/discounts to affiliates as an added incentive.

Northie wrote:

However, be wary of large commissions; it shows you have a high basic profit margin, which could be seen as being greedy - something you don't want buyers to be aware of

I appreciate that unique take on it Northie - good point