Rebates! Rebates seem to be all the rage in today’s market place. Rebates are everywhere. Out in the brick and mortar world there are ‘mail-in’ rebates and instant rebates offered on every product imaginable from computers to home appliances to cars. In cyber space the rebate is everywhere. Rebates are offered on all kinds of programs, software, products and services.
A rebate is simply a discount in fancy clothes. The principle is exactly the same. The customer pays less than the list price for whatever the program, software, product or service might be. The customer is getting a bargain. That’s true. The question, however, is what exactly is the seller getting?
If the seller is giving a 50% rebate that means that he will have to sell twice the number of programs, software copies, products or services to make the same amount of money he would have made had he not offered the 50% rebate.
The seller is giving away his profit especially if the seller is an affiliate marketer because any rebate an affiliate marketer offers his customers comes out of his commission. For example: if you are marketing a product that sells for $197.00 and you earn $98.50 from it, offering a rebate of $50 means that your commission is only $48.50 per sale.
You aren’t going to be earning very much per sale. That can’t be a good thing. There has to be a better way than offering big rebates…and, fortunately, there is.
One of the big problems with offering big rebates is that the offer attracts what is known in the business as ‘cheap customers’. Cheap customers are those who never expect to pay the full price for anything, ever or under any circumstances. They expect to get something for nothing and that something for nothing expectation will always come out of your pocket. You are simply better off without cheap customers.
The answer to the rebate question is just this: give your customers a good reason to buy from you at the full price. Even if you have to pay something for incentive bonuses, it is better than offering a rebate to the customer.
You will attract a better class of customers who will continue to buy from you. Many affiliate marketers think that offering incentive bonuses that are valuable enough to entice people to pay full price for an item is just too much trouble. They will tell you, that it is easier, quicker and just a lot less trouble to simply offer a rebate of a discount than it is to find bonus incentives.
Okay. I agree. Offering a rebate or a discount is certainly easier, quicker and a lot less work than finding bonus incentives that are of enough value to make a customer pay full price for a product or service. However; it is simply not the best thing to do.
The customers that will be attractive by deep discounts and 50% rebates are the cheap customers and once you discount or offer a rebate they are going to expect you to do so with every product or service that you ever offer them. You are going to be working for peanuts when you could be working for the whole peanut gallery.
Don’t waste your time worrying about lazy affiliate marketers who offer deep discounts or big rebates. They will attract the cheap customers that you don’t want anyway and those lazy affiliate marketers will never be any competition for you.
If you are willing to go to the trouble, put in the work, and make the effort to find incentive bonuses that make it possible for you to sell products at their full price to your customers, you will leave those lazy affiliate marketers eating your dust.
Before you even consider offering a rebate or a discount on a product or service think about the reason that you became an affiliate marketer in the first place.
Did you become an affiliate marketer so that you could just barely scratch out a living or did you plan on making a very nice annual income that would provide a very nice life style for you and your family? I doubt that scratching out a living was the top reason that you chose to become an affiliate marketer.
Look at it like this: every time that you accept less than you could get for a product, you are giving away the lifestyle that you have been working for and you are settling for less than you deserve not only for yourself but for your family as well.
It really is never necessary to settle for less. It just isn’t necessary to offer a large rebate or a deep discount to sell a quality product or service.
People need, want and will pay for the products and services that they need. It isn’t necessary to give away your profit if you will just work harder and finding incentive bonuses that will entice your customers to buy the products and services that they need from you.
Don’t discount the product or offer a rebate. Increase the value of the product instead. Remember this; increasing value is better than cheapening the product or service that you are trying to sell. People don’t always see a discount or a rebate as value. They sometimes see it as an attempt to entice them into buying a product that wasn’t worth the full price in the first place.
Only the cheap customers will go for a rebate or discount. The good customers will be shopping around to see what the best incentives being offered are. If you make your bonus incentives the very best, then you will attract the best customers and you can charge the full asking price every time and for every product or service that you promote.