Sales Models in the Product and Nutra Vertical
The product vertical is one of the broadest and most profitable ones in affiliate marketing. Apart from conventional products that can be bought in an electronics or clothes store, it is possible to identify another subvertical, namely that of nutra offers.
The same sales models are used across all product niches. However, some of them may prove to be more profitable when it comes to nutra rather than electronics. In this article, we’re going to address this issue in more detail.
Product vertical or E-commerce?
The product vertical has enjoyed quite a popularity recently. It includes a wide range of products such as foodstuffs, clothes and accessories, electronics, furniture and virtually anything you can think of.
Social media platforms such as Instagram and Facebook are the most common traffic sources for promoting product offers. Google Ads traffic and native ads also demonstrate good performance conversion-wise.
This vertical is sometimes called E-commerce. Actually, it can’t be said that these notions are absolutely identical, as E-commerce encompasses both physical products and various services such as website design, tickets, and some intangible goods. So, E-commerce is a much broader term, whereas this article deals with the product vertical alone.
Nutra stands for various health and beauty products and includes dietary supplements, male enhancement medicines, weight loss pills, CBD products, nootropics and so on. Nutra comes in all shapes and sizes. Ads used to promote such offers can sometimes be qualified as misleading (“get slimmer in a week”, “enlarge your penis in two days”, “get rid of stress immediately”). On the contrary, certain ad copies correctly describe the real effect of a drug.
Both nutra and product offers can work well on all geos. Currently, Latin America and Asia are the most popular regions. Such products are also widespread in the US and Europe, but these geos are characterized by high competition. So, if you are a beginner affiliate and lack the relevant budget, you’d better opt for something that hasn’t been burnt out yet.
Nutra offers are generally pushed on Facebook, Instagram, and through Google Ads. Native traffic also shows good results given the right approach.
Creatives and pre-landers are often quite aggressive as far as nutra is concerned. Pictures of celebrities are commonly used to attract users’ attention.
Business models in E-commerce and nutra
Payments are made by a credit card directly on a website. No hold periods. A potential lead hits your landing page, places an order and then pays for it online. Once the payment is processed, you immediately receive your commission.
When it comes to nutra, this model is considered the least efficient because of the high number of refusals and chargebacks. This stems from the fact that some customers may get disappointed with a product after receiving it and send it back.
Another reason for the poor performance of this model is that a lot of customers are reluctant to input their credit card on some shady website. That’s why many affiliate networks do not work on this model. Direct sales are best suited for popular online stores and famous-brand products.
Trials are quite an interesting model that has its pitfalls and challenges. A client fills in a form on a website where they specify the delivery address and their credit card information. Then, your affiliate network verifies this data and you receive your commission if everything is alright. As for the client, they get a sample and automatically subscribe to the next paid product delivery. If the client buys this product again in the future, an affiliate will get a commission from each purchase, which is called a rebill. You should target countries where a larger share of the population uses credit cards on a regular basis (Tier 1 geos such as the US, Canada, and Europe).
The average approval rate accounts for 60%. Usually, it takes about 14 days to identify the average rebill percentage. It’s generally lower than the approval rate by +/- 10%.
This sales model is widely used when selling nutra products. Users submit their data, and then a call center agent contacts them to confirm the order and the product gets shipped. Payment is made upon delivery. Such offers have gained considerable popularity in countries where people barely use credit cards.
This model is rather cost-effective: a client doesn’t anticipate any risks when making a cash-on-delivery order, for they will pay for the product only after they get it and have a look at it. As for Russia, you may come across certain problems here, as a client can simply decide not to show up at the post office because they have changed their mind or just don’t have enough money. In Europe and the US, such occasions are rather rare, which is linked to different mentalities and a higher income level (and also to a totally different level of performance of postal services – Ed.).
If you work on this model, it’s important that you know for sure that you’re promoting a quality product. Otherwise, a client will just send it back and refuse to pay. So, pick up reliable offers with a decent approval rate.
If you work with popular brands and E-commerce online stores, then direct sales are the best option for you. If you drive traffic to nutra offers, opt for the Cash-on-Delivery model, which will enable you to multiply your sales. Besides, this model is rather easy to work with, it has fewer pitfalls than trials, not to mention that by far not all offers allow you to receive a commission for recurring purchases.
When it comes to nutra, promote a reliable high-quality product, as it enjoys a higher level of trust. Some newly-designed products from more or less famous brands perform very well. Focus on Asia and South America. Having gained enough experience, you can start working with Tier 1 countries (Europe, the US).
We hope that this article will come in handy for you.
We wish you good sales! And remember to work with trusted partners only.
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