Services Digital Products Digital products exist only in cyberspace. Examples of digital products are ebooks, software downloads, and electronic newsletters. These are books, CDs, computers, flowers, furniture, food, etc. Because of low margins and increasing overhead costs, commission rates tend to be lower than digital products and services. Services Services are intangible items such as webhosting, search engines, insurance, consulting, marketing, matchmaking, etc.
Payment is made when a referred visitor makes a purchase.
Commission is most commonly paid as a percentage of the sale, but a flat-fee per sale is also utilized by merchants. Advantages Payouts can be high when a sale is made. Commission-based also requires little effort other than placing the links or banners. When the customer buys the product, the merchant takes care of payment processing and shipping. Depending on the product selected and price, the conversion rate can be quite low.