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Commission: How to increase yours and profit more from your sales

Check out our tips to increase your commissioning as an Affiliate!

Commission – An illustration of a hand coming out of a computer and holding a stack of bills.

Do you know what a commission is?

It’s a reward offered to encourage business results. Most of the time, it’s used to reward vendors financially for sales made.

Thus, they receive part of the profits generated by the sales they made.

Let’s understand how sales commissions work, shall we?

Sales commission

Rewards in the form of sales commissions are one of the most effective strategies to increase business productivity.

It works both to keep employees motivated and to increase sales and even improve customer satisfaction, since vendors are probably more committed to their work.

However, it’s important that the commission strategy in companies be well planned. In other words, that it be aligned to the definition of the goals and combined with another type of performance reward.

Commissions might not appeal to all sellers in the same way. Some might prefer other forms of reward, such as recognition, trips, and awards.

Therefore, before applying sales commissions as a strategy, it’s necessary to test it, understand employee preferences and evaluate it from the perspective of your business goals.

Sales commissions aren’t used only by companies. Here at Hotmart for example, it’s an important part of the Affiliate Program.

Commission is the payment that Affiliates receive to promote digital products, helping Producers make more sales.

Commission and the Affiliate Program 

An Affiliate Program is a system that unites Producers (creators) to Affiliates (sellers) in the sales process.

Based on affiliate marketing, which has been carried out by various sectors around the world since 1990, this model has become consolidated and has now taken over the digital market, becoming a great way of working online.

The agreement that links both ends, Producers, and Affiliates, is precisely the commissions. Affiliates promote the product, influence the increase in sales and receive part of the profits. This makes these systems economically feasible and quite advantageous.

Especially when talking about Affiliates programs in the digital market.

How an Affiliate Program works

On the internet, when joining an Affiliate Program and pick a product to promote, Affiliates receive a link to track the sale they make.

Thus, whenever they promote the product and make a sale, the Producer is notified and the system automatically generates the commission.

This commission is usually defined by the Producers themselves, according to the type of product, its price and their goals with the Affiliate Program.

As you can see, this system works very well, especially because it’s quite advantageous for both Producers and Affiliates.

Advantages for Producers

Among the main advantages, we can mention the following:

  • Having help when making sales
  • Increasing sales
  • Having to worry only about the management of the business
  • Having more type to improve the product.

Advantages for Affiliates

Becoming an Affiliate offers advantages, such as:

  • Having an extra income
  • Working from home
  • Monetizing channels with a good audience
  • Being your own boss
  • Not having to deal directly with customers.

Types of commission

In an Affiliate Program, there are 4 common types of commissions that, as well as the value of the commission, the Producers choose, according to their own product definitions and characteristics.

Check them out below:

  • CPA (Cost per Acquisition): The most common. In this case, the commission is only paid after the customer purchases the product.
  • CPC (Cost per Click): The commission is generated as soon as someone clicks on the affiliate link. However, this type of commission is lower, because it doesn’t generate profit for the Producer.
  • CPL (Cost per Lead): The commission is paid when, in addition to clicking on the affiliate link, the customer also becomes a lead, i.e., a potential customer, leaving the contact to the Producer.
  • CPM (Cost per Mille): Despite being more uncommon, in this case, Affiliates are paid a commission for every 1,000 impressions on their ad.

How to increase your commissions

You can increase your commissions by becoming a successful Affiliate. To do so, you need to have more authority and sell more.

Now, we’re going to check out a few tips on how to gain authority and sell more!

5 tips to help you gain more authority

1- Have a blog

The first tip is to create a blog since it will help you create a presence online and generate traffic with relevant content for your audience.

We have a full post to teach you how to create your own blog and start a content strategy.

2- Create an SEO strategy

SEO, or Search Engine Optimization, which is the optimization for search engines, such as Google.

An SEO strategy helps rank your blog better in search results when someone searches your niche’s subject. Thus, more people will access your content and you’ll gain more authority online.

Consequently, you will also make more sales.

3- Create social media profiles

If you truly wish to be an authority, it’s important that you have well-developed profiles on the most relevant social media, according to your audience.

You need to dedicate time to creating strategies for each specific network, post frequently and interact with people.

4- Increase your audience

With well-developed profiles and frequent content, you just need a few strategies in order to increase your number of followers on social media. 

You can use hashtags, interact with other influential profiles, promote contests and boost your posts.

Check out all of the tips on gaining followers in our post on this topic.

5- Establish partnerships 

Partnerships are important in helping you gain authority faster.

Get in touch with other authorities in your niche and propose collaborations.

You can invite them to write a guest post, exchange links, record a video for your channel on YouTube, or create some kind of campaign together.

Don’t be shy, just offer something in exchange and create a relationship with your partners. This will help you grow and it’ll also be good for your audience.

4 tips to help you sell more

1- Advertise on Google

You can create several types of ads with the Google Ads tool. You can pay to appear on Google’s top results on Google Shopping, on YouTube, and on several other websites.

Learn the steps on how to advertise on Google Ads.

2- Create sponsored posts on social media

One way of selling, without requiring a large audience beforehand, is paying for ads on social media.

Virtually all famous networks have a tool to manage ads. 

It’s important to have good segmentation, create quality content and invest correctly in order to obtain good results.

We have a post that will teach you how to create a sponsored post on Facebook and Instagram.

3- Work with email marketing

Email is crucial for sales. This channel allows you to establish a close and personal relationship with your potential customers.

What’s best is that there are tools to help you automate the entire email marketing process.

Learn how to create an email marketing strategy with this guide.

4- Use sales techniques

There are techniques that can help you sell, among them, we can mention the following:

  • Mental triggers, stimuli to make people buy.
  • Up-selling and cross-selling, techniques used after the purchase to offer an advanced or additional version of a product purchased by the customer.

Make a commission by promoting products

You’ve already seen how commissioning works for Affiliates and some of the advantages of this activity.

Are you interested in learning more about the subject?

Check out our article on how to work as an Affiliate!