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Because you are on this page, I will assume you either have
something to sell or want to see how it works from the merchant's point
of view. In either case, I will talk to you as a business owner
who already has an internet "eCommerce" site up and active.
What's in it for you?
- You control completely the incentive and bonus rates of your
program.
- You deal only with one company who then deals with the
'downline' affiliate partners who promote your site.
- The Management company's Affiliate Partners promote visitors to
your site as traffic you would not ordinarily get. Typically,
this traffic has already read a review of your product or service
and is closer to buying than a 'cold' search engine 'click'.
- Only when you have received the sale are any fees payable.
Unlike normal advertising which requires payment regardless of
performance, affiliate marketing is truly a, "no risk" promotion
method as it is totally performance based.
- You have control over what level of participation you want in
management. You can automatically approve applicants right
through to you needing to browse an applicant's site and approve or
disapprove on an individual basis.
- You can broaden your demographic and catchment markets
instantly. Being clever and organising world-wide delivery or
limited international delivery focussing on Oceania, North America
and Europe/UK will open your business to promotion and custom from
many, many sources.
Ok, Now you have to decide how you want to
reward your sales force. The options are typically:
- Pay per click - a small payout per
unique visitor referred from a partner to your site.
- Pay per lead - a one-off payment for
a referee signing up for membership (or similar).
- Percentage of one time sale -
Commission based upon the referred sale.
- Residual commission - Commission
based upon all sales made to that customer referred by
the affiliate partner.
- Two-Tier commission - paid to
affiliate partners who refer other affiliate partners.
This often works as a small percentage of the 'downline'
partner's commissions.
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Some things to keep in mind:
- Affiliate Marketing is totally performance based.
- You are not committed to one affiliate management
program. Join one - join the lot! The wider your sales
force, the better.
- Make your incentives real, you are employing
commission only salespeople - you have to give them a good reason to
work for you.
- A two tier commission structure is great and will
have many more affiliate partners joining in the promotion of your
business.
- Be prepared for fast expansion. If you
launch your affiliate program just before Christmas when your
suppliers are closed, you may not be able to meet the demand when
your site gets 'slammed'.
- Make sure your site is up to scratch. If
you get ten friends to sit at your computer and without instruction,
navigate your sales system; you will get an idea of how well your
site is designed for the person trying to buy something from you.
For more marketing ideas, please visit the
Marketing Strategies page. |
Right,.. let's 'talk turkey' for a
moment. If you have read this far, you are probably considering
placing your online business with one or more affiliate marketing
companies. Now let's look at it from the other end; the best affiliate
partners run huge businesses with major site traffic and have to be very
selective about the programs they promote.
Don't be cheap with your commissions - you should know
what each sold dollar is worth to you (see your accountant if you do not
understand this point please, it is critical!). If your Gross
revenue is costing you 20% (you invest $20 in advertising, stocking etc.
to generate a $100 sale), you should think about a 15% commission for
the first tier and 5% for the second tier.
If you run a free trial, think about a small
'pay per lead' reward and follow that up with an ongoing commission
structured as above.
As a business owner, the time you DO NOT spend
administering the traditional physical advertising etc. will be your
cream. We all know that that is rarely factored into the 'cost of
sale' figure discussed two paragraphs above.
Widening your client base, adding several
thousand sales people (all on performance based pay only!) and making
sure that each sale is profitable to you and your sales force can only
grow a business. That is why the huge players like Amazon, eBay
and even the Hong Kong Shanghai Banking Corp. use affiliate marketing.
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Some of the best affiliate managers are listed below in no particular
order of preference.
| An Australian firm dealing with a HUGE range of companies and products,
started in Melbourne, Commission Monster utilises post click technology to
track sales and ensure excellent record keeping and tracking for all.
Excellent, clear statements. |
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Based in the U.S., AffiliateBot stocks a wide
range of primarily US based products.
One of the neatest code generators I have seen. |
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Based in the U.S., Leading Edge Cash is an affiliate specialising in health and lifestyle
based products.
Excellent communication for all concerned - very easy to deal with. |
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| Share A Sale is a U.S. based manager with over 2000 merchants and is
still growing fast. Excellent size and opportunity for all. |
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| LinkShare is a HUGE organisation with a great reputation and U.S.,
Canadian and U.K. bases. Excellent for targeted marketing. |
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| Fusion Quest is another amazing Affiliate Manager with a great track
record and excellent merchants. |
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