Why it is like this?

I have more than 500 Affiliates but working ratio is less than 2% why?

What industry are you in?
What incentives are you offering?

Depends on the product. If its a niche market, it’s harder to move the product through affiliation

Its a Graphic Design Company,main business is Logo Designing.
I’m very lenient with my Affiliates, The Commission Cycle starts from 15% & if any Affiliate is performing well, I raise the Commission rate up to 30%.I provide all the Promotion Material.The structure is based on CPS for example;
$5,000 - $15,000 20%($ 1,000), $15,001 - $30,000 25% ($ 3,750)More than $30,000 30% ($ 9,000).Kindly suggest me how can i improve it.

How does that compare to your competitors though (%-wise)?
Do you have a decent landing page and/or funnel to purchase?

With a logo design business, many affiliates may have joined to use your service as a spin off to their own web design or hosting if/when they get extra business. If they are small or just starting out these referrals will be sporadic at best.

Have you tried asking your affiliates what they would need to promote your services more?

I’m in full contact with all of my Affiliates & i do check & balance like I watch out where my banner ads are placed etc…

It is because of two things.

  1. Your product niche must be difficult to sell or your product is not worthy for people.
  2. What intensive you are offering? Increase the commission in sale.

It is depend on your product and type to promote the product

500 that is good. But if your affiliates just registered and forgot about you or placing your links, or they place the links on irelevant sites or with low traffic … well you will get 2% ration.
It’s better than nothing!