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Forum LG affiliate program


DESIGNER

Design Star
2019-07-02
Edited 2019-07-02 by ajleroux (admin)

Does LG have an affiliate program?



ADMIN
ajleroux
2019-07-02

Hi Design Star,

No affiliate program. That would involve a payment to the affiliate, typically a percentage of the sale. Most affiliate programs pay 10% or more of the sale to the affiliate, but with LogoGround's cut at only 6.5% we couldn't make it worth the affiliate's time even if we gave them our entire cut.

The solution would be for designers to pay the affiliate commission from their share. The problem is: If we do it, everyone will have to be in. We can't have some designers agreeing and then only showing their logos to affiliate traffic and hiding the logos of designers who don't want to give up the affiliate commission.

If enough designers think it's a good idea, an affiliate program is definitely a possibility.



DESIGNER
Ortega Graphics
2019-07-02

Hello,

It is true that many affiliate programs pay a fairly big commission to the influencer/affiliate; some go as high as 50% and in the case of some hosting services, they pay more than 100% of the initial sale directly to the affiliate knowing that the sold service is an ongoing monthly/yearly commitment (one of them go as high as 200% of the initial sale, crazy!). That being said, many affiliate programs have lower percentages as well. For example, Travelocity pays 2%-4%, Expedia pays 2%-6%, Eddie Bauer pays 5%, Astro Gaming pays 5%, to name just a few of the low-paying affiliate programs.

The well-known Awin affiliate program has 29,500+ brands on their network. They say that their clients generated $18 billion in revenue in 2018 and they also say that their affiliates earned $818 million that year. So, we can easily calculate that they are paying 4.5% to their affiliates, on average.

Therefore, for an affiliate program in LogoGround, a 3.5-6.5% commission wouldn't be that bad; I bet there will be some influencers/affiliates that might want to get such a commission by recommending LogoGround to their followers and this might translate in an increase of traffic (and sales), depending of course, on the number of followers of said influencers.

As a member of the Shapeways 3d-printing marketplace, I have direct experience with affiliate programs. When a famous influencer instagrammer posted an affiliate link to my Shapeways store back in April 2018, my Shapeways sales increased seventeen-fold that month and after that, my sales have been consistently hovering at around five times my previous monthly average. Needless to say, I really like affiliate programs.

Now, the thing is, there is no difference in the markup that I earn with Shapeways; this means that the affiliate program used by Shapeways pays the commission to the influencer/affiliate from the company's cut, not the designer's cut.

Also, the influencer/affiliate gets paid even if the visitor buys from another store in the Shapeways marketplace; this means that the affiliate program benefits all designers in that marketplace. This is also true with the Amazon marketplace and other programs.

LogoGround could test this, that is, if the admins are willing to share part of their profits with some influencers/affiliates in exchange for traffic and sales.

Sincerely,

Ortega Graphics



DESIGNER
korzuen
2019-07-02

It is hard to decide whether affiliate program would work for logo marketplace. OrtegaGraphics have good points about it. Having a cut on my sales sure is not something I look forward to but if the numbers of sales is going up, then there is more to gain there. If the commission would come from the company's cut, then LG could cut a few percentage more from the original 10% so both LG and affiliate gain enough from a logo sales.

I would be open for this and love to hear more on other designer's thought about the topic



DESIGNER
Old Boy
2019-07-03

@Ortega Graphics - Good point of view, as always.

@korzuen - I agree with you. I will not be against LG's higher cut percentage in order for affiliate to gain enough from logo sales, but just in case we are sure that affiliates can help us to attract more attention to our stores.



DESIGNER
mk4gfx
2019-07-03
Edited 2019-07-03 by mk4gfx

Agree with all the above..
Maybe if the paypal's double-fee issue got solved, so neither our share nor lg share would be affected.



DESIGNER
TomateDesign
2019-07-04

My limited involvement with affiliate programs wasn't as good as Ortegas and admittedly pre-influencer. One of my clients was a publisher, they had to provide artwork, sample chapters and promotional copy which affiliates then used to spam the heck out of vaguely related websites, blog comments and forums with links to THEIR hosted pages which would then link to the publishers sales pages, essentially diminishing the clients own web presence and making their authors seem a bit of a nuisance.

It didn't help sales and eventually their website was hijacked by a Thai beauty blogger (!).

So instead of paying someone to create content to guide them to LG, how about LG hosting content which others refer and link to.

I've entertained the idea of making tutorial videos on: "How to make a generic [popular logo contest site] logo for your new *business* business" and articles like "Fiverr logo disasters", or "What if Nike bought their logo on [popular logo contest site]".

This is all a bit mean spirited for someone who makes money on [popular logo contest site] but is admittedly frustrated by the lack of quality, but perhaps not for a direct competitor?



ADMIN
ajleroux
2019-07-04

Thanks everyone for the input.

I have some experience with logo design affiliate programs, having been a logo affiliate and also running a logo design affiliate program for an older logo site - so I have seen it from both sides and I spent some time studying the affiliate programs of competitors.

Some thoughts:

1. I don't think we can pay less than 10%. In fact, some of our competitors pay up to 40%. LogoGround's 6.5% cut pays the bills and therefor the affiliate commission - whatever the amount is - would have to be deducted from the designer's share.

2. Logo sites that offer 40% commission have gained little from it. Looking at estimated traffic histories, some seem to be sinking even while offering 40%.

3. I am not convinced that creating an affiliate program is the best use of our time. Our marketing strategy with LogoGround has been to just focus all our energy on making LogoGround the best logo site in the world. So far so good! At the rate LogoGround is growing in terms of logos, quality, traffic and sales it looks like that strategy is spot-on. Doing an affiliate program well will take up a significant amount of time and energy. If we divert time and energy to an affiliate program it will be at the cost of other planned improvements to LogoGround. I'm hesitant to change something that's working.

mk4gfx, I agree and sorting out the PayPal fees issue is high on our to-do list.



ADMIN
ajleroux
2019-07-04

TomateDesign, I posted before I saw your post. Good points.



DESIGNER
Old Boy
2019-07-07

40% is too much for kind of service which doesnt lead to any improvement in our business. In that case it is more important to keep LG healthy and payable then to risk with high cut percentages from third side.

Good to hear different experiences.


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