Do you know what a commission is?
It is a reward offered to incentivize business results. It is typically used to financially reward sellers for sales made.
In this way, you receive a part of the profit generated by the sale, you work your way and you do not need to invest any time in the creation of products, nor monetary investments!
Let’s better understand how a sales commission works!
Sales commission
Sales commission rewards are one of the most effective strategies for increasing business productivity.
It works both to keep employees motivated and to increase sales and even improve productivity, keeping in mind that salespeople are likely to put in more effort at work.
Therefore, it is important to plan the commission strategy in companies well. In other words, it must be in tune with the definition of the goals and also combined with other types of rewards for performance.
A commission may not appeal to all salespeople in the same way: some may prefer other forms of rewards, such as recognition, trips, and prizes.
Therefore, before adopting a sales commission as a strategy, tests must be carried out, understanding the preferences of the collaborators and evaluating it from the perspective of the business objectives.
Not only companies use a sales commission. At , for example, it is an important part of the .
Commissions are the payment Affiliates receive to promote digital products and help Producers make more sales.
Go ahead and understand this relationship better!
Commission and Affiliate program
An Affiliate Program is a system that connects (creators) with (sellers) in the sales process.
This model, which began with Affiliate marketing carried out by various sectors around the world since 1990, was consolidated and today has taken over the digital market, and has become an optimal way of working online.
The link between these two points, the Producer and the Affiliate, is precisely the commission. The Affiliate promotes the product, influences to increase sales and receives a share of the profits. That makes these systems economically viable and very advantageous.
Especially in affiliate programs in the .
How an affiliate program works
On the Internet, when entering an Affiliate program and choosing a product to promote, the Affiliate obtains a link to follow the sales they make.
This way, whenever you promote the product and make a sale, the Producer is notified and the system automatically generates a commission for the Affiliate.
This commission is generally defined by the Producer himself, according to the type of product, the price and what his objectives are with the Affiliate program.
As you can already see, this system works very well, mainly because it is very advantageous for both the Producer and the Affiliate.
Advantages for Producers
Among the main advantages we can mention the following:
- have help to sell;
- increase sales;
- having to worry only about running the business;
- have more time to perfect the product.
Advantages for Affiliates
Becoming an Affiliate offers advantages such as:
- have additional income;
- Work from home;
- capitalize on channels with a good audience;
- be your own boss;
- not having to deal directly with customers.
Types of commissions
In an Affiliate program there are 4 most common types of commissions that, as well as the value of the commission, are determined by the Producer according to their own definitions and the characteristics of the product.
They are the following:
- CPA (Cost Per Acquisition): It is the most common among the other types of commissions, in this case, the commission is generated only when the customer consumes the product.
- CPC (Cost Per Click) – A commission is generated when someone clicks on the Affiliate link. However, that makes that type of commission lower, since it does not guarantee profits to the Producer.
- CPL (Cost per Lead): the commission is generated when, in addition to clicking on the Affiliate link, the person becomes a lead, that is, a potential customer, and leaves their contact information to the Producer.
- CPM (Cost Per Thousand): Despite being less common, in this case, the Affiliate receives the commission for every 1000 times his ad is displayed (impressions).
How to increase your commissions?
You can increase your commissions by becoming a successful Affiliate. For that, you must have more authority and sell more.
Let’s see some tips to gain authority and sell more!
5 tips to gain more authority
1- Create a blog
The first tip is to have a blog. With the blog you will be able to show your online presence and generate traffic with relevant content for your audience.
Here we have a complete post for you to learn how to start a content strategy.
2- Make SEO strategy
SEO or Search Engine Optimization means the optimization of search engines, which are websites that people use to search, such as Google.
The SEO strategy serves so that your blog is well positioned in the results when someone performs a search on topics in your niche. In this way, more people will access your content and you will gain more authority online.
Thus, more sales you can make.
We also have a complete content about , click on it and learn!
3- Create profiles on social networks
If you really want to have authority, it is important to have well-crafted profiles on the most relevant networks, according to your audience.
You should spend some time creating strategies for each specific network, posting frequently and interacting with people.
4- Expand your audience
If you have worked profiles and you post frequently, just apply some strategies to increase your number of followers on social networks.
You can use hashtags, interact with other influencer profiles, promote contests, and boost your posts.
Learn all the tips for .
5- Connect with collaborators
Being in contact and/or making alliances is very important to gain authority quickly.
Contact other authorities in your niche to suggest collaborations.
You can invite them to write a guest post, exchange links, record a video for their YouTube channels, or run some kind of campaign together.
Don’t be afraid to appear cheeky, simply offer something in return and build a relationship with your partners. This will help you grow and will also be good for your audience.
4 tips to sell more
1- Advertise on Google
Various types of ads can be made with the Google Ads tool. You can pay to appear in the first results of Google, in Google Shopping, on YouTube and on other websites.
Learn the .
2- Make sponsored posts on social networks
One way to sell without needing a large prior audience is to pay for ads on social media.
Virtually every major network has an ad management tool.
It is important to do a good segmentation, generate quality content and invest correctly to obtain good results.
We have a post that will teach you how to .
3- Do email marketing
Email is essential for sales. This channel allows you to establish a close and personalized relationship with your potential client.
The best thing is that there are tools that help you automate the entire email marketing process.
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4- Use sales techniques
There are techniques that can help you sell. Among these, we can mention the following:
- mental triggers, stimuli to make people buy;
- up-selling and cross-selling, techniques to offer, after a purchase, an advanced or additional version of a product purchased by the customer.
You can consult everything about tools, techniques and methodologies in our .
Earn commissions by promoting products
You have already seen how Affiliate commissions work and some of the advantages of this activity.
Are you interested and want to know more about the subject?
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