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Working out how to best approach mobile app affiliate program rates

We're soon to be releasing a mobile app that is a business productivity tool for networking. The model is going to be free to download, and free to use up to 50 contacts. To upgrade to unlimited contacts the user pays $15/year. So that's the background data. Here's the question...

We will be (and already are) creating relationships with people who run networking organizations/groups, who are interested in our app for their members/clients. The question comes up occasionally about whether we will offer an affiliate commission for signups.

My question is, is there any common/fair/reasonable standard percentage on such a thing in your experience? Obviously we are dealing with a low cost item here, so there's not a lot of margin to play with on this (keeping in mind as well that the app store take 30% off the top already).

Wanted to see if any of you have been in a similar position and what your experience/approach was on it.

3 Replies

Aaron Glinski
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Aaron Glinski Entrepreneur
Digital Marketing Specialist at Vinyl Interactive
To figure out a percentage that works for you, you would have to look at your LTV. Industry standard rate for a CPS affiliate product ranges from 5% to 8%. Depending on what type of margins you have, some product owners go up to 30% or 40%. If you don't know your LTV, try building an advertising campaign to figure out your LTV first. Knowing the value of each customer will give you an idea on how much you could give an affiliate.
Christopher Owens
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Christopher Owens Entrepreneur
Founder/CEO at LincSphere, Inc.
Thanks, Aaron, for taking the time to answer.

While I understand what your point is, I guess my question is more about what other people have found is an acceptable percentage or amount that affiliates tend to expect in this kind of situation. Obviously, whether I CAN DO that will need to ultimately factor in my customer LTV, however.
Ratnam Raj
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Ratnam Raj Entrepreneur
Ruby on Rails Developer
Hi Christopher

I am looking for investor for my new mobile applications and market place web applications

Thanks
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