When Empower Network introduced 100 percent commissions I remember thinking how is this possible?
I have a business degree and worked as a CPA for much of my life. I then worked as a Financial Planner. I understand every business needs to be profitable to stay in business.
Paying 100% Commissions brought up so many questions for me. How could anyone survive doing that? It just made no sense to me.
The boys that started Empower Network soon found out they needed funds to employ support staff and run their business. So the model changed a little…. or in some people’s minds a lot.
I explain it on the video below but in essence they introduced a monthly affiliate fee and later some products they do not pay 100% commission on.
Since then many others have copied or done some type of variation of the model.
I share my thoughts in this video.
Affiliates perspective on 100 percent commissions
What do you think on the subject of 100 percent commissions?
As affiliates it is nice to earn a nice slice of the pie but we want the business or person we are selling for to stay in business don’t we?
I guess I have been on the other side of the equation more than I have been selling for someone else. I still think from the main business owner’s position.
Business Owners perspective
In our days owning a Financial Planning practice our planners were forever wanting higher commissions. We knew how much we needed to pay in overheads and it was considerable.
There was always that trade-off for us to pay enough commission to keep good planners but to also keep enough money for our company to stay in business.
Most people that become affiliate marketers or network marketers have come in from being an employee. I am the opposite I have been a business owner so I think a bit differently.
For many of you who visit my blog you have, or are creating, your own products. You will have the same challenges and I encourage you to know your numbers and to make sure you do not give away too much.
Having said that more sales where you retain a lesser percentage could mean more profits for you.
A very simplistic example of this
You are selling a product online for $50
1. Paying 25% commission
100 sales x $50 = $5000.00 – you pay $1250 commission ——- your keep $3750
2. Paying 50% – more commission more people want to sell for you
1000 sales x $50 = $50,000 – you pay $25,000 in commission and you keep $25,000
Simplistic but you get the message. In this example you would be significantly in front paying
Closing thoughts on 100 percent commissions
100 percent commissions — 20 percent commissions—- somewhere in between. There is a business owner or product creator and there are sellers. Every business needs sales to be in business. It needs to be a model that is acceptable and sustainable for everyone.
Empower Network have not changed the playing field in my mind they have merely adjusted and grown up as business owners.
Over to you… what are your thoughts on this subject?
Have a great day!