How is it that companies can afford to give away a 75% commission on a regular basis? The answer lies in the sale of digital downloadable products such as ebooks and software.



Although a large amount of money goes into the production of downloadable products, the costs to sell additional copies are extremely low. Once a product is created, it costs almost nothing to give away an ebook or a piece of software. The economic term for this is instant scalability, and it refers to the phenomenon that digital products cost almost nothing to reproduce.

It is for this reason that some companies are able to give away large commissions when affiliates sell their products. Because of the low costs in reproducing digital products, companies can afford to pay their affiliates large commissions. When make money programs claim that its members can earn high commissions for selling other people's products, it is digital products that allow for this claim.

Because the costs to reproduce digital products are so low, companies can offer their affiliates large commissions for bringing in new customers. Even after paying their affiliates these large sums, the companies can still turn a profit because of their low costs.

In addition, by offering high commissions to affiliates, the producers of digital products hope to attract many affiliates and therefore turn a profit by selling a large volume of their e-books or software. Even though giving away the high commissions lessens immediate profits, companies hope that the generous amounts will attract more affiliates and therefore sell more copies of their product.

Therefore, while the claims made by affiliate marketing sites seem outlandish, there indeed are companies that pay extremely high commissions. For this reason, those following this strategy continue to have success selling digital products as affiliates.

Because the reproduction of digital products has very low costs, producers of downloadable are able to offer their affiliates large commissions. It is these types of products that affiliate marketing programs teach to their users to promote, and it is the reason why so many new customers have made money on the internet.