Q: A two part question for you. What is best way to determine a price for a subscription based info product and the affiliate commission for it as well as an affiliate commission rate for a JV partner(s) for the info product(s)? What financial agreement would you strike to JV info products as a subscription service, assuming multiple JV partners and the selling of their physical products through ones own site? Allowing that the subscription is monthly, open ended, and no need to track product usage.
A: Basically, it’s all about what the market will bear. Have a look at the current subscription-based products out there and put together a chart of the pricing, affiliate commissions, and any other competitive intelligence you can assemble.
ClickBank has a large number of information products in their directory, and you can look through the various categories to determine which are most popular.
This can help get a feel for which affiliate payout structures and price points are working.
The rate for JV partners will vary on what you are selling and your competition. There is no formula here – try bouncing some numbers off big players and come to an agreement. Then roll this rate out to other JV partners.
As far as the finances for the ongoing subscription, that’s another thing you should try and model on what is already out there and working.
In the event there is nothing comparable, work out some projections to determine the margins you’ll have from month to month.
Ultimately, I would suggest starting off with a conservative commission plan and ratcheting it up to figure out your sweet spot.