Do Rebate Bonuses Devalue Your Affiliate Product?

Offering discounts on affiliate marketing products is an interesting issue, as both sides can create compelling arguments. The pro-discounters will argue that by offering a product at a lower rate than the competition, you are more likely to make a sale.

Ask anybody if they would rather pay $10 for a movie ticket or $20, and they'll opt for the $10 version. It's the same movie after all, isn't it? Why pay more for the same experience.

Plus, from a marketer's point of view, the numbers even out. Despite the fact that you receive less profit from each sale, that you get more sales will make up for this.

Anti-discounters also have a compelling argument. The cornerstone of their reasoning is that by offering discounts, you are effectively gathering a customer list of only those who want cheap products and incredible bargains.

While this may get you sales for the initial product, every time you want to go back to that list, you are less likely to get sales. The bargain hunters won't care about doing business with you personally, because they can just do a web search and find somebody else who discounts a little bit more than you, and then buy the product from that person.

Also central to the anti-discounter argument is that excessive price cuts devalues the product, and related products, as a whole. If you discount an $80 product down to $50, then you have devalued that product.

If you try to sell a related product in the future that costs more, then customers will say to themselves, "Why bother with this new product, when there's that $50 one that seems just as good?"

Also, the original producer of that product has had his or her work devalued and will find it harder to sell that work at a good price later on.

So if discounting isn't the way to go, how will you be able to sell products? Use your bonus offers to entice customers. If you offer a high-quality bonus, then you can make more sales. Remember that movie ticket example from above? Well what if I told you that the $20 dollar ticket included a seat and a bag of popcorn and the $10 ticket was standing room only with no refreshments? Still the same movie, but the added value of the seat and food makes paying full price worth it.

Have a good bonus and everybody wins: the client is happy with their pruchase; you get a valuable client to join your list - one who will likely buy another full priced product down the line; and the producer of the product gets to retain that product's value.