For affiliate marketers, promoting hosting companies like Bluehost can be lucrative. Why? Because they pay such high commissions. One could make a whole living off of just promoting hosting companies. This article will explain first, why Bluehost pays such high commissions, and second, that promoting Bluehost is easy-but competitive. Being a successful affiliate marketer does not happen overnight. You really need to put some elbow grease into it. Some virtual elbow grease.
As of right now, Bluehost offers you $65 per affiliate sale. That means that if someone signs up for Bluehost through your affiliate link, you will earn $65. If you make a few of those sales per day, you can do the math. Things start to add up.
The reasons they pay so much in affiliate commissions are twofold. First, you (as the affiliate marketer) are doing all of their legwork for them. You are promoting their product, and their brand, and expanding their reach, and no cost whatsoever to Bluehost. Basically, you are being an online salesman for them. They aren’t physically doing any work here. If you don’t make any sales (as is the case for a lot of affiliate marketers), then Bluehost doesn’t really care, because they haven’t lost anything. If you are successful for them, they reward you with a cash payment. So the risk for Bluehost really low, but the potential gains for them is extremely high.
The second reason that they pay such high commissions is that once they have a customer, the customer will probably be theirs for life. They pay you, the affiliate, a one time up front payment, but they themselves get a recurring commission. Some companies charge a recurring commission from their customers every month, but Bluehost collects money from customers on a yearly basis. But think about it: when was the last time you actually changed hosting companies? It doesn’t happen very often, especially if you are satisfied with the company. Changing hosting providers is a real hassle. And hosting companies know this. IF they can get a satisfied or even a mildly content customer, then there’s a good chance that hey have a customer for life, or at least for the life of their site. And also, if you have one website, why not buy more and host them with the same company?
So at first glance, you might think companies like Hostgator or Bluehost are crazy for paying out such high commissions. But now you know why-it makes complete sense.
But remember to be careful, because there is tons of competition out there. There are thousands of affiliates trying to make commissions every month. But if you know how to do proper search engine optimization, or Internet marketing, then there is no reason why you wouldn’t be able to make a few sales a month.
This article was not written to convince you to become an affiliate for Bluehost or Hostgator or Hostmonster, etc. It was just written to inform the reasons why these companies pay lucrative commissions to their affiliates.
However, if you do choose to become an affiliate, remember to promote the product ethically. There are real people on the other side of the transaction, and they appreciate honest facts and opinions and information.
Ryan O’Loughlin is a blogger and affiliate marketer. He is a customer and affiliate for Bluehost. He can’t argue with the high commissions they pay.