How to set up a custom affiliate program in LemonSqueezy

Setting up a custom affiliate program in LemonSqueezy can be a great way to incentivize individuals or groups to promote your products.

Here's a step-by-step guide to creating a custom affiliate commission for a specific person:

1. Access Affiliate Settings

Log in to your LemonSqueezy dashboard and navigate to the Affiliates settings.

This is where you can manage your affiliate program and set up custom commissions.

Open the Overview dashboard to see an overview of all the affiliates that have joined your program. You will see all the clicks, referrals, and total earnings that have been generated by your affiliates.

2. View Affiliate

Click on the affiliate you want to set up a custom commission for, or press the triple-dot icon to the right of the affiliate's name and select View.

You will see a detailed overview of the affiliate's location and contact details. You can review the performance of the affiliate, including clicks, referrals, earnings, and past payouts.

3. Manage Products

Scroll down to the Settings section, here you will see the affiliate link and the current commision and products that the affiliate has access to.

To set up a custom commission for a specific product or all products, specifically for the affiliate, click on the Manage Products button.

The Manage Affiliate Products page will appear. Toggle the Enable specific products and set custom rates switch to enable custom commissions for the affiliate.

4. Set Custom Rates

Toggle all the checkboxes for the products you want to set up a custom commission for, and enter the custom commission rate for each product that the affiliate will receive.

This will override the default commission rate for the affiliate and apply the custom commission rate to the selected products.

This will help you to incentivize the affiliate to promote specific products and increase their earnings.

Click on Save Changes to confirm the custom commission rates for the affiliate.

You will now see the custom commission rates for the affiliate on the Affiliate details page.

5. Reset to Default

In case you want to reset the custom commission rates for the affiliate and apply the default commission rates, you can click on the Reset to default button or uncheck the Enable specific products and set custom rates switch.

That's it! You have successfully set up a custom affiliate commission for a specific product or person in LemonSqueezy.

Why set up a custom affiliate program?

Setting up a custom affiliate program can be a great way to incentivize individuals or groups to promote your products. In most cases, the top affiliates generate the most sales and revenue for your business. Motivating them with higher commissions can help you increase your sales and revenue so that they spend more time and effort promoting your products.

What is a good commission rate for affiliates?

A good commission rate for affiliates typically ranges between 20% and 40%, depending on various factors such as the industry, product prices, and the company's margin.

In the SaaS niche, for example, commission rates often fall between 15% and 30%.

It's important for businesses to set commission rates that are competitive and attractive to affiliates while still being sustainable for the company's financials.

When deciding on commission rates, businesses should consider the following:

• Industry Standards: Look at the average commission rates within your industry. For instance, finance/crypto and SaaS industries may offer higher rates.
• Competitor Rates: Analyze what competitors are offering to ensure your rates are competitive.
• Product Prices: Higher-priced items may warrant lower commission percentages, as the total commission per sale can still be significant.
• Profit Margins: Ensure that the commission rate does not exceed the profit margin to maintain profitability.
• Customer Acquisition Costs: Commission rates should be aligned with the cost of acquiring a new customer.
• Company Growth: Start with a lower commission rate and increase it as the company grows.
• Tiered Structures: Consider implementing a tiered commission structure to reward higher-performing affiliates.

Ultimately, the best commission rate is one that motivates affiliates to promote your products effectively while allowing your business to maintain a healthy profit margin.

Note that the affiliates often have their own cost of acquisition, such as advertising, content creation, and other marketing expenses. Therefore, it's important to ensure that the commission rates are attractive enough to cover these costs and still provide a profit for the affiliate.

A very good affiliate marketer will often have a big choice of products to promote, so it's important to make your product stand out by offering a competitive commission rate.

Conclusion

Setting up a custom affiliate program in LemonSqueezy can be a great way to incentivize individuals or groups to promote your products.

By offering custom commission rates for specific products or people, you can motivate affiliates to promote your products more effectively and increase your sales and revenue.