Affiliate Marketing: The Higher the Products Price, the Higher the Earnings Articles | Entrepreneur

By: Richard Butler

Many people have a misconception in their mind that in terms of doing business online, they needed to price much lower to beat the competition. To their surprise, it's totally wrong and if they continue like this, they risk making very little money. It's a fact that the higher you price your products, the more affiliates will promote your product, thus by the laws of leverage you will make more money.

Let's take an example -  Say there are 2 affiliate offers, the first one is priced at $20 and gives 50% affiliate income and the other one is priced at $40 which offers 50% also. If you were to decide to sell a product which would you choose?  Selling the $20 product which only gives you $10 profit or the other which gives you $20 as profit? Without thinking too much, I assume you will apply for the second one, right? Of course, the higher the profit, much higher tendency that people would promote your product.

If you are just like many who view pricing in the wrong perspective, now is the time that you need to shift your mindset. Though this is the time of recession, but in terms of online business, it’s also the time of pricing products higher because it shows much credibility and people are more interested in earning more.

What should you do now? Price higher than the competition. Be competitive enough.