Question about interest from affiliate marketers

[Hearingaids]

I run a direct to consumer hearing aid company in the USA and only ship to continental USA. We currently sell mainly via call centers selling our own manufactured hearing aids to consumers. I have been looking into utilizing affiliates to sell our products and want to know if a hypothetical "offer" would have interest in the affiliate community to make it worth our time/effort/etc to invest into it.

The offer would probably be around 18% per sale. Our hearing aids per pair are around $1900, $2300, $3000 depending on model. These are 100% top of the line that an audiologist would charge 2x to 3x that amount.

A few reason why we are looking into this:
1. I see tons of people/affiliates already in the senior market with medicare/medicaid/braces/etc so this would be an additional fork for them
2. This industry is growing enormously with baby boomers at that age
3. There is no longer really a stigmata with the current hearing aids - apps control them, people are wearing bluetooths just like them, you can stream through them, etc.
4. We are a decently large seller, doing around 2,000 net sales/mo, so we have millions in inventory at all times, great customer service
5. We have partnered with one of the largest financiers to allow 24 mo and 36 mo payment options, so at $40/mo. to get hearing aids is attainable for those that can't afford (in the process of working with a 2nd tier for financing that would approve the denials)
6. We will handle all shipping costs even on returns
7. There is big $$ in hearing aid batteries, tips, accessories
8. Everything is shipped the next day via UPS.
9. We have 500+ google reviews at a 4.5 star rating

Some real reasons to be cautious:
1. We offer a 30 day money back and will require this of all resellers. Which means the affiliate would be paid on day 32-35 on net sales.
2. You will have returns in this 30 days, the industry avg. is around 40%. We sell 3,800 pairs/mo and 2,000 pairs net/mo.
3. Its a higher ticket item
4. If you utilize our finance partner, the commissions would drop to around 14%

Being new to this type of sales/marketing/distribution platform, is this something that you believe marketers/dropshippers/affiliates would be interested in? Please leave some feedback is you believe this would result in 5 sales a month, 100 sales a month, more? If its something like 5-10 sales per month, its not really worth us pursuing. Feedback also if you believe the commission is just too low, its too high priced for something like this, or any other feedback you may have.

Thanks for the time and glad I found this forum and was able to read through some posts.

 

[Graybeard]

You will have returns in this 30 days, the industry avg. is around 40%.

You can stop right there.
I don't get a credit for my advertising cost or SEO value of a lead and acquisition.
If the customer does not accept your product that's your problem.
I can trade dollars all day long on the stock market with some degree of transparency --

Pay cash up front for the leads ...
$20 per bona fide lead of what you can afford to offer.

As for sales of generic parts like batteries or replacement parts for specific units a 40% return ratio seems absurd. In fact you must have issues with any merchant account with a return rate like that.

 

[Hearingaids]

I think you misunderstand. Accessories have literally a 0% return rate.

Hearing aids purchased WITH a prescription from an audiologist with a bonafied relationship have a 40% return rate. And I'm not asking for leads. I'm asking for sales. What do you care that there is a refund rate? If I tell you it is going to be 40%-50% and it is, isn't that figured into your costs for marketing? I was upfront about that. It's figured into our marketing cost. And we have zero problems with our processor, on a preferred rate with Stripe with less than .05% chargebacks. They are happy to do $50M+/yr.

I already purchase calls/leads at $500k+/mo.

I'm looking for other distribution channels such as affiliates to sell the products without the need for any inventory/etc. backend work on thier end. I'm interested in a affiliate/call center/dropshipper to sell our products and was simply wondering if there would be interest at a 18% commission rate to pursue another avenue of sales and revenue.

I just happened by this forum and was brainstorming new ideas to increase forcastable scaled revenue at a % expense.

 

[Hearingaids]

Medicare will never cover a hearing aid 99% of the time. We do not provide insurance, we will provide the invoice necessary for it, but thats it. This gets into a grey area in which a public hearing aid company just lost 90% of their value because of.

Here is the reason I am asking. I spend roughly 10% (of sales price) right now on marketing. I spend 8% in commission for sales rep. So if I offer 18% to an affiliate/dropshipper/etc. I am saving $8/hr for the rep + insurance cost + footprint cost. I am losing out on total control of the entire process + control over message delivered to customer.

Just wondering if the market exists for an 18% commish on hearing aid sales of $2000-$3000. Every other person that buys will not count. It should be built in to your model. The 10% I allocate to marketing has a 50% return rate built in. So we spend 5% per "sale" and 10% per "net sale".

If it's not doable, thats fine, just trying to explore some outside areas. Thanks for the read.

 

[Graybeard]

Hearing aids purchased WITH a prescription from an audiologist with a bonafied relationship have a 40% return rate

Like I say --that is a REAL problem.
I can understand why --my mother had a cochlear implant that was pretty useless but she didn't get a refund ... The hearing aid was pretty bad too. Since medicare pays usually (over 65) who gets the refunds? Or you are not dealing in that market.

 

[Graybeard]

Google Ads PPC would be about 0.05325 or 5.3%
You could just scale with native ads, Facebook ads if you are not doing that now.
IMO your scenario is too complex for affiliates or dropship marketing.
Too bad Manchin killed the bill that would add medicare payment --that might have been a game changer
So are the hearing apps I see being offered as an inexpensive alternative.