Bad Economy Equals Lower Prices and Lower Commissions

No doubt the economy is effecting online purchasing as well, which is trending towards lowering prices. These lower prices, coupons, etc are translating into obviously lower commissions. Where a referred visitor may purchase an average of $200 worth of product, with coupons and lowered pricing, the average may be down as low as $100.

So what's the best way to compete with lower commissions, based on factors you have no control over? My suggestion is to focus on more referrals, more visitors, and make up for the lower tiered commissions with volume. That's what the advertisers are hoping for, that the deals will translate into more sales, although lower dollars each.

Maybe more than ever affiliates need to be focusing on getting cheap traffic, by focusing heavily on SEO and less on PPC. Although SEO is an ongoing job, it can translate into lower cost visitors and have lasting effects. Where as on PPC when the campaign funds dry up, the visitors stop coming, and the cost per visitor adds up to lower your ROI even more on dropped priced sales.