New to Affiliate Marketing?
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Affiliate Programs
What it is and what it is not.
Picture a kid standing on a corner holding a big sign shaped like an arrow that says "HOT, FRESH PIZZA THIS WAY- MEDIUM FOR JUST $5!".
Maybe you've seen something like this before and maybe you haven't.
Here's the explanation though: Affiliates function a bit like this child does. They draw the attention of people driving by (surfing the internet) and encourage them to make a purchase.
Affiliates typically earn income in one of the follow ways...
• Flat Commission per sale - The affiliate earns $50 per sale, regardless of the value of the product sold.
• Percentage Commission - The affiliate earns 5% of the sale's total value. $5 on a $100 sale, and $12.50 on a $250 sale, for example.
• Capped Commission- The affiliate earns one of the two above ways, but may earn a maximum of $25 per sale, for instance. (ie: A capped commission of $75 per sale on a $1000 dollar purchase would result in a $75 earning, even if the pre-cap commission rate is 20%)
• Recurring Commission - The affiliate earns in one of the above ways, but is paid on a continual basis as further transactions (such as a paid subscription) occur on a referred account.
Affiliates foot the bill for their own advertising efforts, which has some obvious drawbacks and some less obvious advantages.
Tip: I know from personal experience that I was able to "write off" (deduct from my earned income) the value that I paid for advertising costs for my consulting practice. You may want to check with your local authority to see if this tax strategy is available in your area!
Also, affiliates are not considered members of the company they work for, but rather an outsourced expense. In case you were wondering, that means you can sign up for as many affiliate programs as you like. (Be sure to keep track of it all!)
What to look for in an affiliate program, and How to find them.
Here are some things to look out for when reviewing affiliate program details:
• Cookie Duration. If a cookie lasts 24 hours you'll need a referral you send to webstore to purchase a product within that timeframe for you to get the credit for the sale. If it lasts 60 days, you've got a better chance that you'll get credit if a sale isn't made right away.
• Webstore Shipping Policies and Location. Something that can sometimes be overlooked. Not all webstores are viable for every audience. Some do not ship overseas, some do not ship across certain borders and some do, but not well. If you're promoting Amazon products to a British target market, you should seriously consider sending them to Amazon.co.uk instead of Amazon.com.
• Commission Rate. Seems obvious. We'd all rather earn 100% commission than 3% commission on the same sale, right? Be aware that the price of the product we're selling and the likelihood of purchase can make smaller commission rates more appealing in some cases.
• Landing Page. Look at the website - does it look professional? Would you trust them with your credit card? Would you expect good service based on your impression of the store? If it looks like crap it probably converts like crap too. People like to get the impression that there's a reputable company behind the webpage before they make purchases... go figure!
• Conversion Rate. This is more applicable to smaller stores and individual offers since it can be harder to get the info for a full site. However, if you're sending traffic somewhere, it'd be nice to get 1 in every 5 visitors buying something instead of 1 in every 500 visitors. This topic is VERY important if you decide to use paid traffic generation methods!
• Affiliate Support. Does this program give you access to banners, e-mail swipes, videos or any other material you can use to make your promotion of them look professional?
• Payment Options. Will you be paid by check? Paypal? How often? Once a week or once every 3 months?
• Mobile Optimized Landing Pages. This is very important if you'll be promoting your affiliate links to mobile users. If the page they land on is not mobile friendly (be sure to check the shopping cart, too!) you're wasting your money.
• Reputation. Some affiliate networks and programs have better reputations for paying out commissions than others. Most are good, but there are some less-than-desirables out there too. Do your due diligence before getting in too deep.
• Coupon Codes. Does the program have them? With TV shows out there like "Extreme Couponing", combined with less than favourable economic environments, more people are looking for ways to save on their purchases. Coupon Codes can help to protect your sale from other affiliates (or snag it out from under them!) by ensuring that you get credit for the sale at the time of purchase.
I know that was a lot of things to think about. Not every program will have all of those elements, which is fine. Particular elements will be more important depending on both your needs as an affiliate and the needs of the market you're in.
As for how to find programs...
Many online retailers and marketplaces have affiliate programs. Most realize that getting part of a sale is better than not getting the sale at al. Besides, the face of marketing is changing. Hearing good reviews of a product or service from your peers is more powerful than seeing a billboard ad in many cases.
If you want to find out if a retailer has a program go to their website. Scroll to the bottom and look for an "affiliates" page.
Cheers to your Future Success,
-Adrian In't Veldt
What it is and what it is not.
Picture a kid standing on a corner holding a big sign shaped like an arrow that says "HOT, FRESH PIZZA THIS WAY- MEDIUM FOR JUST $5!".
Maybe you've seen something like this before and maybe you haven't.
Here's the explanation though: Affiliates function a bit like this child does. They draw the attention of people driving by (surfing the internet) and encourage them to make a purchase.
Affiliates typically earn income in one of the follow ways...
• Flat Commission per sale - The affiliate earns $50 per sale, regardless of the value of the product sold.
• Percentage Commission - The affiliate earns 5% of the sale's total value. $5 on a $100 sale, and $12.50 on a $250 sale, for example.
• Capped Commission- The affiliate earns one of the two above ways, but may earn a maximum of $25 per sale, for instance. (ie: A capped commission of $75 per sale on a $1000 dollar purchase would result in a $75 earning, even if the pre-cap commission rate is 20%)
• Recurring Commission - The affiliate earns in one of the above ways, but is paid on a continual basis as further transactions (such as a paid subscription) occur on a referred account.
Affiliates foot the bill for their own advertising efforts, which has some obvious drawbacks and some less obvious advantages.
Tip: I know from personal experience that I was able to "write off" (deduct from my earned income) the value that I paid for advertising costs for my consulting practice. You may want to check with your local authority to see if this tax strategy is available in your area!
Also, affiliates are not considered members of the company they work for, but rather an outsourced expense. In case you were wondering, that means you can sign up for as many affiliate programs as you like. (Be sure to keep track of it all!)
What to look for in an affiliate program, and How to find them.
Here are some things to look out for when reviewing affiliate program details:
• Cookie Duration. If a cookie lasts 24 hours you'll need a referral you send to webstore to purchase a product within that timeframe for you to get the credit for the sale. If it lasts 60 days, you've got a better chance that you'll get credit if a sale isn't made right away.
• Webstore Shipping Policies and Location. Something that can sometimes be overlooked. Not all webstores are viable for every audience. Some do not ship overseas, some do not ship across certain borders and some do, but not well. If you're promoting Amazon products to a British target market, you should seriously consider sending them to Amazon.co.uk instead of Amazon.com.
• Commission Rate. Seems obvious. We'd all rather earn 100% commission than 3% commission on the same sale, right? Be aware that the price of the product we're selling and the likelihood of purchase can make smaller commission rates more appealing in some cases.
• Landing Page. Look at the website - does it look professional? Would you trust them with your credit card? Would you expect good service based on your impression of the store? If it looks like crap it probably converts like crap too. People like to get the impression that there's a reputable company behind the webpage before they make purchases... go figure!
• Conversion Rate. This is more applicable to smaller stores and individual offers since it can be harder to get the info for a full site. However, if you're sending traffic somewhere, it'd be nice to get 1 in every 5 visitors buying something instead of 1 in every 500 visitors. This topic is VERY important if you decide to use paid traffic generation methods!
• Affiliate Support. Does this program give you access to banners, e-mail swipes, videos or any other material you can use to make your promotion of them look professional?
• Payment Options. Will you be paid by check? Paypal? How often? Once a week or once every 3 months?
• Mobile Optimized Landing Pages. This is very important if you'll be promoting your affiliate links to mobile users. If the page they land on is not mobile friendly (be sure to check the shopping cart, too!) you're wasting your money.
• Reputation. Some affiliate networks and programs have better reputations for paying out commissions than others. Most are good, but there are some less-than-desirables out there too. Do your due diligence before getting in too deep.
• Coupon Codes. Does the program have them? With TV shows out there like "Extreme Couponing", combined with less than favourable economic environments, more people are looking for ways to save on their purchases. Coupon Codes can help to protect your sale from other affiliates (or snag it out from under them!) by ensuring that you get credit for the sale at the time of purchase.
I know that was a lot of things to think about. Not every program will have all of those elements, which is fine. Particular elements will be more important depending on both your needs as an affiliate and the needs of the market you're in.
As for how to find programs...
Many online retailers and marketplaces have affiliate programs. Most realize that getting part of a sale is better than not getting the sale at al. Besides, the face of marketing is changing. Hearing good reviews of a product or service from your peers is more powerful than seeing a billboard ad in many cases.
If you want to find out if a retailer has a program go to their website. Scroll to the bottom and look for an "affiliates" page.
Cheers to your Future Success,
-Adrian In't Veldt