"Does This Sound too good to be true"
That’s exactly how affiliate marketing works. Through these online operations, you sign up with another individual or company that
markets your service and or products, often through an advertisement you or they place on one of there sites.
Then the affiliate is provided
with commission based on sales or visits that result from there ad efforts. It’s the ultimate way to pay for performance.
An affiliate will do alot of the marketing for you. And you only pay them after they have provided the outcome you want,”
says Glenn Thomas, President of The Xylem Group, a consulting firm with expertise in Media Buys, Advertising Analytics.
In The Very Same Moment, To become a success in the affiliate marketing world requires understanding the basics.
Here’s are a few things you should know:
Evaluate your affiliates channels Including Your Competition
Your so called affiliates can own anything from a website, e-newsletter, even a shopping portal, to name a few.Thomas points
out that one client, a very small business supplying sunglasses, as a case in point. Their most successful affiliate is a website dedicated to bi-cycling, which recently included an interesting article about the vendors product with a direct link to there site.
The company then pays the affiliate a percentage of the sale. At the same time, however, the company uses a variety of affiliates.
This is the bottom line: “If You want a good amount of multiple income streams use different types of channels,” says Thomas.
How many exactly ? There’s isn't a magic number. You can make money with perhaps as a base line thirty, or in some scenarios, 1000's. It all depends on the quality of the vendor. For example, five or six highly effective affiliates that specialize in search engine optimization
in particular can provide you with as many sales as hundreds of mediocre websites could, especially if there demographic Market is not targeted.
Scrutinize the affiliates commission rates
Commissions rule the roost, they can range from as low as 3% to as much as 95%, although the average is around 20% to 40%, according to Thomas. The
amount depends on a variety of things. High volume products, tend to command much lower rates. but dont forget, you usually get exactly what you pay for. Take S.Rothberg, president of CollegeRecruiter, a career site
for students and recent graduates. He pays about 40% more than many other companies in order to attract the very best affiliates.
About 10% of his yearly revenue come from his affiliate programs.
Focus on recruitment and retention
Recruiting the highest quality affiliates is the toughest part. While there are lots of choices, finding the correct partners, grabbing their attention and negotiating details take time - as long as a year in some cases.
One possibility is to sign on with an affiliate network like Clickbank, CJ, Or PayDotCom. Almost all
of CollegeRecruiter's affiliates, have resulted from relationships within the network,this is where interested affiliates that match your requirements automatically become partners.
That’s only the first step. Just because you’ve signed up an affiliate doesn’t mean it will let you go live.
To make sure you are “activated”, as Thomas puts it, you also need to work constantly. For example,
Send the top twenty affiliates for each gifts, and call them at least once a quarter.
Decide if you’d prefer one or two tier affiliations
Somewhat like the classic Mary Kay-style Marketing arrangement, these affiliates use a referral network to
generate more profits for the company and commission. An affiliate that is working with a particular company will attract other affiliates to sign up. Then, they could receive commission generated by those newer affiliates .
This system ensures much more income for vendors throughout the chain and a much greater visibility. Plus, “It saves time if you don't have time to recruite full time,” says Thomas.
Find the right affiliate solution You need for monitoring traffic, sales and payments. There are two ways to go about it.
One is to install in-house software and do it yourself. Only for those that really no there way around a computer, however, The other is to hire a
third party to provide technology and customer support needed to facilitate all your transactions.
Watch out for fraud and spam