What is Affiliate Marketing?
Affiliate Marketing is a revenue
sharing venture between two businesses. Business ‘A’ (your business) pays business ‘B\ (your
affiliates) for sending new customers to your site. An example is having your
affiliate host your ad on their website. When
potential customers find your
business through the affiliate site, you pay the affiliate commission . The
affiliate benefits by being paid to host your ad, and your business benefits by
acquiring potential new customers. It is often one of the more cost effective
channels since you only pay when a successful transaction happens.
Affiliate programs are ideal for
businesses that are trying to get new customers. In as little as six months to
a year, you can have hundreds of affiliates marketing your products or
services, often at a lower customer acquisition cost than other channels
of online advertising.
Affiliate Networks
If this is your first affiliate
program, you may want to consider working with an affiliate network. Affiliate networks connect advertisers and
publishers who can drive traffic to your website. Additionally they provide
tracking, reporting and handle all affiliate payments.
With new programs, affiliates often
feel more comfortable working through networks. There tends to be more confidence
in tracking methods, as well as faith
they will be paid in a timely
manner. A downside to joining a network is the upfront costs, which vary from
$575 to $6000. We have listed an overview of some popular
affiliate networks.
Commission Junction – A
premium priced affiliate network. Since 1998
they attract a majority of the
larger brands and have many high quality
B2C and B2B affiliates.
ShareASale – Another great network known for
industry friendly policies and a value conscious cost of entry. With a free
data feed, they are great for retailers of all sizes.
Buy.at – A great option if you are looking
to take your program global and appreciate great service.
LinkShare – Founded in 1996, LinkShare is
another well-known network with a wide reach.
Managing Your Affiliate Program
Successful programs require a
serious commitment. Managing your program includes many ongoing tasks such as
recruiting, launching new promotions, managing creative, reviewing applicants,
newsletters and much more. With so many tasks to handle, you want to consider
how you will manage your program. There are
several options:
In-House Management – Run it
yourself or have another staff member
handle it. Either way, be sure to
dedicate adequate time to nurture the
program in order to deliver the
growth you are looking for.
Network Management – All of
the major affiliate networks offer the option of managing the program for you.
Although costly, your program may benefit working with a team that can easily
make the connection with the best affiliates for your program.
Outsourced Program Management – You could
opt to work with an
outsourced program manager (OPM),
which offers you not only industry experience but often costs less than network
management.
Promoting Your Affiliate Program
Once your program is set up and
ready to go, the most important task is affiliate
recruiting. Recruiting quality affiliates
to your program is an ongoing task that should never end. You want to be sure
that affiliates and fans of your brand are
aware that your program is alive
and welcome them.
There
are many ways you can promote your affiliate program. Here are some simple and
low cost methods you can do immediately and get the response you are looking
for.
Website
– Create a webpage on your site for
the affiliate program with
basic information, as well as links
to the signup page. Be sure to list this page in your footer links and your
sitemap.
Newsletters
–Send an email solo announcing your
new
affiliate program to your email
list or mention it in a section of every
newsletter you send out.
Blog – Announce the program on your blog.
Social
Sites – Share the
news on your favorite social sites like
Facebook or Twitter.etc
Affiliate
Forums – Create a
program announcement on A
Best Web.
Affiliate Newsletters
Once your affiliates are on board,
you want to stay in touch with them. That way they are always up-to-date with
the latest products or services and news about your brand. You can also run
contests and offer special bonuses during a given month. Sharing the latest
details with them is motivating and also gives them the tools to help sell your
product or service. Here are some popular items to include
in your affiliate newsletter:
·
Latest affiliate links
·
New products or services
·
Ideas on how to market your products/services
·
Recent company news or updates
·
Links to tutorials or videos
·
Contests, new bonuses, activation incentives
·
Recent affi liate successes
·
Marketing tools and resources
·
Complete contact information of the program manager
You’re On Your Way!
Although having an affiliate
program is a great way to grow your business, it is important to note that this
is a marathon and not a sprint. Affiliate programs take
time to grow, but are worth it in
the long run. Managing a program can be time consuming, as you want to attract
only quality affiliates that engage in fair and honest marketing practices.
Fraud can run high in this industry so you want to dedicate the time to ensure applicants fit
your program requirements, and monitor their activity.
There is much more to learn about
running an affiliate program other than what’s listed in this here. However,
this is a great starting point for businesses looking to benefit t from the
increased traffic and sales that affiliate marketing can deliver.
Affi liate Program Resources
Check out them HERE for a
program example and to learn more.
Here are some additional resources
for you:
Feed Front – The official magazine for Affiliate
Summit. Read the
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