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To determine a fair price to pay your affiliate, first visit some sites with similar programs and see what they offer their affiliates.
Next, in most companies it is assumed that about 12% of your budget is advertising.
Thus you might allocate 10% of that towards the affiliate payments and 2% towards maintaining the program.
Beamed allocates 10% to its affiliate program , but with a twist: it offers a 5% savings to the customer, then 5% of the sale price to the affiliate.
The idea is that the 5% discount should generate at least twice as many sales as no discount would, so that the affiliate actually makes more money overall.
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