What should you consider when choosing an affiliate program? You need to think about two key things: what business are you in and what can the affiliate program provide to your customers.
No matter what business you are in, the largest investment you make will be customer acquisition. If you have your own product, and have acquired a base of satisfied customers, then single product affiliate programs could work very well for you.
However, if your business is acquiring customers for other businesses, that is, purely affiliate programs, then a better choice for you could be affiliate programs with multiple products or services. This will help you to capitalise on your investment in customer acquisition.
The key to choosing successfully is to ensure that the affiliate program offers products that meet the needs of your potential customers. Coupled with this is the need for the products to be high quality and for the supplier to provide excellent customer service. Remember, your credibility is on the line every time you refer someone to buy through your affiliate relationship.
Some of the other factors I consider when evaluating affiliate programs include:
+ Is the affiliate program a reputable business? You can check out a business you are considering a relationship with in variety of ways. Talk to the Better Business Bureau in your local area or a similar body. In addition, I find web sites that monitor affiliate programs to be worth looking at. The best I have found is Associate Programs http://www.AssociatePrograms.com. Allan Gardyne pulls no punches and tells it as it is.
+ Does the program enable you to share in the lifetime value of the customer? Great programs will give you commissions on all future purchases of the customers you introduce. This is where the real profits are. These types of programs, in effect, allow you to partner with the supplier.
+ Does the program reward you for introducing other affiliates? This type of program is commonly referred to as a two-tier program. Often your customer may become an affiliate also and you will be rewarded for this.
+ Is the supplier interested in your success as an affiliate? The top affiliate programs engage in a process of coaching or information sharing to help you succeed. Affiliates are provided with regular newsletters outlining what is working for successful affiliates and providing updates and details on new products.
+ Is the commission reasonable? Commission rates on commodity products such as books and CDs are low. This is because there is very little margin in the products due to competition. Look for products that have a commission rate of 15% or more that are not commodities - that way you will be better able to recoup your customer acquisition investment.
+ Are statistics provided? The higher the level of statistics provided, the better off you are. This will enable you to measure the success of your marketing efforts and to determine the best places to invest your marketing dollars. Insufficient statistics is a sign that the affiliate program is not sufficiently interested in your success.
+ Are new products being developed regularly? To get the full value from lifetime commissions, new products need to be introduced on a regular basis. Without this, lifetime commissions can be worthless. Also, look for consistent high quality in new products introduced.
+ How frequently are commissions paid? The more frequently commissions are paid, the better off you are. Good quality affiliate programs will pay you monthly. In some situations, commissions are not paid until a certain level is reached. If the program you are considering has this requirement, check how many sales need to be made before the level is reached.
+ Have you read the affiliate agreement? This is a key area that you should look at. Some affiliate agreements are totally in favour of the supplier. Others are more balanced. Some agreements restrict your ability to promote similar products from other suppliers. Most agreements have anti-spam provisions. Look for agreements that are fair and that do not stack everything against you as the affiliate.
While there are other factors that can be considered when choosing an affiliate program, following the suggestions above will help you to make superior business choices that will lead to long-term success.
Article by Kevin Sinclair, CPA, of Personal & Business Success Resources. Visit his website at http://www.sbi.ksinclair.com/.
by Kevin Sinclair
Tuesday, May 12, 2009
Six Tips For Successful Affiliates Marketing
Affiliate marketing has become increasingly popular in recent years. Affiliate programs offer merchants the opportunity to employ vast armies of sales people who only get paid for the results they achieve. Many beginners to affiliate marketing can also enjoy the fact that they can start an internet business even if they only have a shoestring budget. Just about every affiliate program I have been involved with and researched comes complete with a website all ready set up to take orders. They even come with sales letters and ads that you can use.
The rewards for affiliates are high also, and the skilled affiliate marketer can earn many thousands of dollars a month. This win-win situation has led to an explosion in the number of affiliate programs that are available to the would-be marketer. With this increase of opportunities has come many questions; how do you go about choosing the right opportunity for you? What qualities should you look for in a program and which gives you a good chance of making a sustainable income?
Below are some tips that will help you to evaluate merchants and their programs, and help you to avoid wasting time and money.
1. How Much Commission Does The Merchant Pay?
This may seem obvious, but it is very important that you know how much you can expect to earn from a sale. There is no point in spending time and money promoting a product that doesn't pay well. You could end up spending more on marketing than you are likely to make on sales. It is probably best to stick with marketing products with a high commission value, unless you have found a niche market where you can sell vast quantities of product, and make substantial commissions on your volume of sales. I recommend sticking with programs that offer at least a 50% commission. Anything less and you’ll be spending more on advertising than what you’ll make
2. How Much Traffic is the Merchant's Website Getting?
Try to discover the amount of traffic the merchant's website is already receiving. Alexa.com could be a useful tool for doing this research. If the website is ranked in the top 100,000, the merchant is getting a good volume of traffic, and there may already be too many affiliates. If it is ranked below 500,000 it is either no good or it could just be a golden opportunity to make some real money! Always research a merchant's product if their website has a low traffic ranking. It may be a good idea to buy the product yourself if you can afford to. Otherwise you could do a search to find out if there are any adverse comments about it on the internet. If all is well and the product is good, you may have found a gold mine!
3. How Often Are Commissions Paid?
Some merchants pay commissions every week; some once a month, others only pay every quarter. It is important that you know how often you can expect a pay check if you are going to have financial control over your business. Do you have the financial resources to continue to market a product if you have to wait a long time before you get paid?
It would also be wise to find out the minimum commission that you have to earn before you get paid. Some affiliates don’t send your money until you accumulate a certain amount. What I like are the affiliates that pay as soon as a sale is made. They are the only programs I promote and recommend. I don’t like to wait for my money.
4. Does The Company Use Tracking Cookies?
Many customers do not buy on their first visit to a merchant's website. It is important therefore that the merchant uses cookies on their site, so that you get credit if the customer returns and buys at a later date. Check out how long the cookies last. The longer the cookies lasts; the better the chance of getting paid! I also like to cloak the URL of my affiliates. This way the link is changed and you are certain that you won’t lose your commissions.
5. Does The Merchant Pay On Subsequent Sales?
The best time to learn about affiliate marketing is before you're in the thick of things. Wise readers will keep reading to earn some valuable affiliate marketing experience while it's still free.
Some merchants will only pay commission on sales that come through customers visiting their site via a direct link from your site. They pay you nothing for any subsequent purchases that the customer makes if they visit the merchants site directly. It is important that you get paid no matter what route the customer returns by if you are to build a sustainable business.
6. What Promotional Resources Does The Merchant Offer?
Look at the type and quality of the promotional material that they provide for there affiliates Do they provide articles or content that you can use to promote them on your site or free guides, special offers or samples? If the promotional resources are good it is likely that the merchant will provide good support for their affiliates. I also like to write my own ads for the affiliates I promote.
Sometimes you will get a better response using your own ads. If the affiliate program you are marketing has been around a long time, it’s likely all the ads that come with the program have been seen over and over again. Fresh ads will have your reader think it’s a new product.
Affiliate marketing can be a very lucrative business and an excellent starting point for anyone new to internet marketing. Finding the right merchant can be a tricky business. The best advice is to do your own research. Use the above questions as an aid to finding a merchant that enables you to reach your financial goals. You never know - You could strike gold!
About the author:
Ed Rizzo's website http://www.dpdmarketing.com reveals his inside secrets and sources that help him pocket over $10,000 a month . To find out more about affiliate marketing check out his DPD Marketing website http://www.dpdmarketing.com/onlinebusinessresources.htm
by Edward Rizzo
The rewards for affiliates are high also, and the skilled affiliate marketer can earn many thousands of dollars a month. This win-win situation has led to an explosion in the number of affiliate programs that are available to the would-be marketer. With this increase of opportunities has come many questions; how do you go about choosing the right opportunity for you? What qualities should you look for in a program and which gives you a good chance of making a sustainable income?
Below are some tips that will help you to evaluate merchants and their programs, and help you to avoid wasting time and money.
1. How Much Commission Does The Merchant Pay?
This may seem obvious, but it is very important that you know how much you can expect to earn from a sale. There is no point in spending time and money promoting a product that doesn't pay well. You could end up spending more on marketing than you are likely to make on sales. It is probably best to stick with marketing products with a high commission value, unless you have found a niche market where you can sell vast quantities of product, and make substantial commissions on your volume of sales. I recommend sticking with programs that offer at least a 50% commission. Anything less and you’ll be spending more on advertising than what you’ll make
2. How Much Traffic is the Merchant's Website Getting?
Try to discover the amount of traffic the merchant's website is already receiving. Alexa.com could be a useful tool for doing this research. If the website is ranked in the top 100,000, the merchant is getting a good volume of traffic, and there may already be too many affiliates. If it is ranked below 500,000 it is either no good or it could just be a golden opportunity to make some real money! Always research a merchant's product if their website has a low traffic ranking. It may be a good idea to buy the product yourself if you can afford to. Otherwise you could do a search to find out if there are any adverse comments about it on the internet. If all is well and the product is good, you may have found a gold mine!
3. How Often Are Commissions Paid?
Some merchants pay commissions every week; some once a month, others only pay every quarter. It is important that you know how often you can expect a pay check if you are going to have financial control over your business. Do you have the financial resources to continue to market a product if you have to wait a long time before you get paid?
It would also be wise to find out the minimum commission that you have to earn before you get paid. Some affiliates don’t send your money until you accumulate a certain amount. What I like are the affiliates that pay as soon as a sale is made. They are the only programs I promote and recommend. I don’t like to wait for my money.
4. Does The Company Use Tracking Cookies?
Many customers do not buy on their first visit to a merchant's website. It is important therefore that the merchant uses cookies on their site, so that you get credit if the customer returns and buys at a later date. Check out how long the cookies last. The longer the cookies lasts; the better the chance of getting paid! I also like to cloak the URL of my affiliates. This way the link is changed and you are certain that you won’t lose your commissions.
5. Does The Merchant Pay On Subsequent Sales?
The best time to learn about affiliate marketing is before you're in the thick of things. Wise readers will keep reading to earn some valuable affiliate marketing experience while it's still free.
Some merchants will only pay commission on sales that come through customers visiting their site via a direct link from your site. They pay you nothing for any subsequent purchases that the customer makes if they visit the merchants site directly. It is important that you get paid no matter what route the customer returns by if you are to build a sustainable business.
6. What Promotional Resources Does The Merchant Offer?
Look at the type and quality of the promotional material that they provide for there affiliates Do they provide articles or content that you can use to promote them on your site or free guides, special offers or samples? If the promotional resources are good it is likely that the merchant will provide good support for their affiliates. I also like to write my own ads for the affiliates I promote.
Sometimes you will get a better response using your own ads. If the affiliate program you are marketing has been around a long time, it’s likely all the ads that come with the program have been seen over and over again. Fresh ads will have your reader think it’s a new product.
Affiliate marketing can be a very lucrative business and an excellent starting point for anyone new to internet marketing. Finding the right merchant can be a tricky business. The best advice is to do your own research. Use the above questions as an aid to finding a merchant that enables you to reach your financial goals. You never know - You could strike gold!
About the author:
Ed Rizzo's website http://www.dpdmarketing.com reveals his inside secrets and sources that help him pocket over $10,000 a month . To find out more about affiliate marketing check out his DPD Marketing website http://www.dpdmarketing.com/onlinebusinessresources.htm
by Edward Rizzo
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