Affiliate Marketing – Which Products Pay Best?

I wanted to say a few more things about affiliate marketing, since it’s such a big part of the home business world. In response to the question of which products pay best, digital products (e-books and downloadable software) generally offer a commission with a higher percentage than physical products (tangible, touchable, solid).

Most digital products have commissions in the 25 to 75 percent range, with the majority of items around 40 to 50 percent. The commission on physical products is usually in the 5 to 12 percent range.

Many people jump to the conclusion that they can make more money in affiliate marketing with a digital product. Maybe, maybe not. There are lots of things to consider.

The most popular of the digital products have lots of competition and many of the sales pages have too much hype in my humble opinion. Those things might work against you. However, if you write good articles and do some product reviews, you build some credibility and have a better chance to get noticed and make sales.

A physical item might only have a commission of 10%, but when an item is sold at $400 to $500, the commission earned is $40 to $50, and it can really add up.

I have two websites that are set up to make commissions from affiliate marketing. One site features information on self-improvement e-books (digital products) and the other site is focused on a certain style of home furnishings (physical products).

Although the products, sales price, and commissions per sale are different, the average monthly income is about the same from each site. For example, 20 physical products sold at an average of $500 with a 10% commission is $1,000 monthly income (20 X $500 X 10% = $1,000). And, 40 digital products sold at an average of $50 with a 50% commission is also $1,000 monthly income (40 X $50 X 50% = $1,000).

Of course, that’s just my personal experience. You might have completely different results from promoting two different types of products, due to several variables.

When thinking about affiliate marketing, you should consider other things besides just the amount of commission you can earn:

• Which products have strong personal appeal for you?
• What is the best way to promote your favorite items?
• Are you comfortable with the sales pitch for the item?
• Do you trust the person or company behind the product(s)?
• Is it a product you like enough to recommend even if you didn’t make any commission?

I hope you understand why it’s so important to think about such questions. It might be the difference between a successful home business and ending up frustrated or disappointed.

When it comes to answering the question of which products pay best, a digital product will usually have a higher commission than a physical product.

However, it goes beyond the best commission for a single item. What about the best overall money-maker, long-term potential, how to get maximum sales, or any number of other questions?

Sorry, but we haven’t found a solution that will satisfy everybody. Each person involved with affiliate marketing will need to figure out their own approach because what works best for one person might not be the way to go for someone else.