Did you know that Word of Mouth Advertising is the best form of Marketing? In most cases it will work very well because you may have done an impressive job or your product had worked amazingly for the client.
This process should continue regardless cos there are people who would just buzz for you without asking for commissions.
But is this enough to run a successful business?
Well to grow bigger and reach out to more people the organic word of mouth marketing tends to fiddle away after a certain period because these people who buzz for you do not have any commitment in promoting your products or services in the long term. Hence in the long run, we have to create compensation plans to reward our referrers for their hard work.
If you are the middleman and get rewarded at least $200 to $3000. Will you continue helping this company sell their product or services. Yes right?
Is it easy?
Its hard work actually but it is still much easier than running a whole business.
So how to set aside funds for commissions?
Its quite easy. Say example if you product is worth $10. So how much can we split this up.
Say the cost of the product is $4.
Your handling & administration will cost $2.
Finally Affiliate/Referral commission: $1.
For physical products, we would usually set from 3% to 30%.
In the above case, $1 is already 10% of the retail value. Its actually quite big.
Hence your eventual profit will be: $3
So yup that is how you can set your commission rates. There is nothing wrong with giving more commission but as a business entity you too must take care of your own rice bowl.
In the online world, you must also consider Paypal Fees and such. That will be another topic to discuss.
OK, Fadzuli how do I become the Middle Man or Affiliate online?
I will be touching on this topic during this upcoming workshop.
Click poster above to get a clearer description of this event.