Affiliate Marketing Tips For the Advertiser

Many businesses miss out on the true benefits of affiliate marketing. As an advertiser (the business looking to obtain affiliates) you really need to understand the extremely delicate balance that needs to be achieved in order to hit that sweet spot of unbelievable business success.

So, What is This Sweet Spot Exactly?

First, this depends on the goal of your affiliate marketing campaign. For most companies there are 2 main targets that are zeroed in on:

1. Building Your Brand

2. Making a Ton of Profits

However, many businesses forget about old #3, Making a Ton of Profits for your Affiliates.

Hitting the sweet spot involves all three of these targets. I’ve seen a lot of companies start an affiliate program and generate a bunch of leads, and just dump their affiliates without even a care. If you do this you will miss out on a ton of money that could have been made.

You have to understand what affiliate marketing is really all about, and having been on both sides of the table (meaning I have ran affiliate programs for my business, and have also been a publisher selling affiliate products) I know exactly what needs to be achieved for both to have success.

You see, affiliate marketing is about much more than just you (the advertiser) making a great business decision to pay for only advertising that results in sales and therefore profits, it’s also about building your company brand while building strategic partnerships with individuals who can literally make your business explode.

It’s fine and dandy to use affiliate programs to have individuals throw up a few banner ads to make some extra money and generate leads for your business, but that’s what most companies do, so why stop there? You don’t want to be like everyone else, you want to be better than them. You do want to be better than them don’t you? I sure hope your answer is yes, because if not you can stop reading now. You don’t have to know these strategies if you don’t want to, but for those who do, pay extremely close attention to the rest of this article.

Your goal with your affiliate program from this point on should be to aim for the 3 targets I mentioned earlier: Building your brand, Making a ton of profits for yourself, and Making a ton of profits for your affiliates. Helping your affiliates will help you, I can guarantee that, and this will come down to how you ultimately structure your affiliate program.

So How Do You Structure an Affiliate Program?

First, it’s all about the commission. You have to give people a great incentive to advertise for you. Your goal is not just about making that quick sale (quick sales are good, but there is a lot more to this), it’s about the lifetime value of the customer and building that strong brand image with them. If you don’t know what the average lifetime value of your customer is, you’re going to have to go through your records, do some research, and probably do a little math. You at the very least want to know how much they spend, and for how long they remain an active customer.

Typically a good commission to start with for physical products is 6-8%, and once an affiliate shows good sales volume you can increase the commission amount to 12% or even 15% if it is feasible. Keep in mind at this point, whatever commission you decide on, make sure you’re still making a profit. I know that sounds like common sense to you, but later on after you’ve tested your campaign for a while you make actually find it more affordable to take a loss up front on the first sale. Don’t worry, I’m going to cover this in a little bit, so just keep reading, but first I want to cover informational / digital product affiliate commissions.

For informational / digital download affiliate programs, you want to at least offer a 50% commission. Statistics show that programs that don’t offer 50% or higher do pretty miserably. There have been a few exceptions with products I worked with that did well, but that was only because they had extremely high conversion rates. So use this as your baseline, test it, and see if you can afford to go higher. With downloadable products it’s usually not the first sale that will make your business, but it’s the backend products and the upsells that come later on. So just like with physical products, you want to know what the average lifetime value of a customer is, and from there, you can assess how much of a commission you can afford to give out.

Second, is cookie duration. This is very important to your affiliates because most sales do not occur on the first visit. Studies show customers on average come back between 4-7 times before a sale is actually made depending on the product that is being sold. I advise companies to use at least a 60 day cookie. Why 60? because everyone else uses 30, 30 days is the standard. Even though most sales do occur within that time period, you’ll attract a ton of more affiliates with a 60 day (or greater) cookie duration.

Third, besides the cookie duration, something for you to consider is the attribution of the sale. Attribution basically means deciding on who to credit the sale to. If you have a customer who goes to one affiliate, and then doesn’t buy, but a day or 2 later manages to land on a different site and then buys, who do you want to credit the sale to? Most companies prefer a last click attribute, meaning the last site to get the click that results in the sale gets the credit. This is the most common method, but there are other companies that prefer the opposite which is a first click attribute, which means even if someone bought from the second site in the above example, the site that got that first click will get the sale. Choose which rationale works for you, for me I tend to favor the last click attribute as well.

Fourth, pay your commissions on time. If you do not pay your affiliates on time they will venture somewhere else, even if it’s for a lower %. Your affiliates are working hard for you and many times are paying to send traffic to their sites for the possibility of making commissions for advertising your products, and most of the time those advertising bills come in way before they get paid, and I know because I’ve been there. Nothing would get me more ticked off than the affiliate company not paying on time, and even worse than that, some will even wait till the next paying cycle. You need to feel your affiliates pain and know what they go through. There’s nothing more agitating then spending a few hundred or thousand dollars on advertising and having to wait 2 months to get paid on it.

More Advanced Affiliate Marketing Tips For The Advertiser

So what’s the point of making sure all this happens? Why is it important to make sure your affiliates are happy? Well here’s some stuff that will really put you above the competition. I’m all about giving great content in my articles, so here’s some juicy stuff for you.

Making Outstanding Affiliate Offers

Anyone can recruit a bunch of affiliate marketers, slap up a good offer following the basics that i listed above and you’ll make a bunch of sales, but will they make your business explode overnight? Probably not. It’s where you take it from here that will depend on how much success your affiliate program will be. After you (or your affiliate manager) has started generating affiliates, contact them. Send a message to your affiliates and ask them if any of them would want to take advantage of a special offer, and how you’d love to work with them personally. You see many companies will give their affiliates coupon codes for shopping discounts like 5, 10, 15% off, or offer free shipping for people that buy through affiliate links. Now these work pretty decent from time to time, they do help people to buy through affiliates, but there is always a way to take things one step above the competition, and that’s what I’m going to teach you here.

Typical Multi-Product Website Affiliate Offers

You want to work closely with a few select individuals that responded to that email that you sent to them about working with them personally. Depending on your business structure, there are a few directions you can go from here. First I want to talk about your standard multi-product website. Let’s say you sell furniture online and really want to get your business to explode. Instead of just giving coupons to your affiliates you want to try to get your affiliates to promote different categories or even a specific product in ways that aren’t possible through your site.

Let me explain, a typical product website can only do so much. You have a product picture, a description, maybe a bit of ad copy, and a price. The only factors that you can really change to increase sales are Price, Free or Reduced Shipping, tweak the Copy, and Brand Image. This is pretty standard stuff, and there’s nothing wrong with it, but there is a whole other level that you can hit with your affiliates, but will not be able to fly on your site. Since we’re talking about furniture, let’s say you have a product that you want to work with an affiliate to sell. The product is called the Super Deluxe Bed. With your chosen affiliate there are a lot more things you can work on to get this product sold. An affiliate (with your supervision) can create copy for the product that will be able to incorporate so many other sales triggers to get it sold.

Example: Your affiliate is promoting the Super Deluxe Bed. For his customers you allow him to have an exclusive offer (or allow him to say it’s exclusive) for this bed, and that the only way they’ll get this exclusive offer is if their customers buy through him. However, that’s just the beginning. Allow your affiliate to inject some scarcity into his customers veins. Make it an “Extremely Limited” offer that’s only available for a limited time, or that you’re only allowing a certain # of these beds to be sold at this price. You can also allow your affiliate to offer a bonus to the customers that buy the Super Deluxe Bed. The bonus can either be a physical product like a “limited edition lamp”, or a Free “How to Get an Amazing Nights Sleep” Special Report. Salesmanship like this will get a ton of more products sold for you.

Exploding Your Business With Affiliate Marketing

These are things that will get your business to literally explode but something you can’t do alone. If you did this on your site for every product or category you would come off as too salesy, or too pushy. I mean think about it, if every product bought got the same special bonus it wouldn’t be special any more, or if everything is listed as “limited quantities available” you’d seem more like a business that can’t manage it’s stock rather than one that’s giving people an “exclusive limited offer”.

Really take a few minutes to picture the 2 different sales processes I just described, and put yourself in the customers shoes to feel the experience they would have in each situation. Which do you think would be more likely to make the sale: Your site listing the product with free shipping, or an affiliate site listing the product with an “exclusive limited time free shipping offer”, with a bonus (only for the next 10 orders) Free “How to Get an Amazing Nights Sleep” Special Report (a $37 value), along with some longer more compelling copy?

See you can’t do that with every product on your own site, but with the power of affiliate marketing you can drive highly targeted traffic to amazing offers like this without tarnishing your brand. It’s really just unbelievable with how doing this with multiple affiliates with several different products or categories can blow away the competition and make you and your affiliates a lot of money, and I’m just talking about visitors coming to your site via advertising, don’t even let me get started with what this process can do for you in a product or business launch or relaunch sequence. Ever want to know what it’s like to make a years worth of sales in a few days? You just try this in a launch or relaunch and the results will surely make your eyes plunge out of their sockets.

Information Product Website Affiliate Offers

For an Information / Digital Download type of site, you can use the same techniques as above. Work with your affiliates to allow them to offer something unique specifically for their customers. Either you can create it for them or let them do it with your supervision of course. The point is to make it so that your affiliate is giving them something exclusive for ordering through them. Also, just like with the physical products above, If you do a well coordinated product launch with your affiliates you can expect to make a lot of cash quickly.

Why You Need to Keep Your Affiliates For the Long Term

So why do you want your affiliates to succeed so badly? What do you need them for after the sale is made? I mean you got your money your leads, what else can they possibly be good for? Because your affiliates, if you work with them and help train them with the example techniques I mentioned in this report, they will always continue to bring you high quality leads. You always want to allow them to make available to their customers “highly exclusive” offers on a continuous basis. Don’t forget, affiliates one way or another through using their time or cold hard cash, that they are covering your advertising expenses.

Making a Profit Selling at a Loss

Remember way up at the top of this article when I mentioned sometimes you can have an affiliate program where you can actually take a loss up front on the first sale? Well I want to get into that here a bit like I promised. You see, making that first sale is what is crucial to your affiliate marketers, it’s what gets their motor going. If you can afford to take a loss up front then do it and you’ll see more affiliates then you can handle sign up for your program, but only if you have an awesome backend to sell those customers, and this is something that requires testing. If you’re not making a profit, don’t do it. Your backend, whether digital download or physical product, has to make you a nice profit. I’m not talking nickles and dimes, I mean a hefty profit. I know the bulk of this article talks about being good to your affiliates, but you’re in this to make money and they understand that. They may be taking on the bulk of your advertising expenses, but you’re here to make a profit too. If you’re going to go for a loss on the front end, you don’t give your affiliates backend commissions unless you’re making huge profits yourself, but if you structure it so that you can make some good money on the front end, there’s no problem with thanking your affiliates with a nice commission on that as well.

Building Your Brand With Affiliate Marketing

Throughout this whole affiliate program process remember your targets. You now know how to make a ton of money for yourself and your affiliates, but don’t you dare forget about that brand! You must build your companies brand in with the affiliate marketing process. Even though the link of the product will be redirecting to your site, your sites name needs to be on that page. Those customers need to know that those Super Deluxe Bed “exclusive offers” are going to Squiggly Doo’s Furniture Store before the link sends them there. It really helps the credibility of the switch from one site to the next. Take note however, that you are not endorsing any bonuses (anything separate from your sites offers) that may be offered through your affiliates, you’re just privately approving them. It’s just a matter of protecting your brand, and guarding yourself legally. If you find yourself getting complaints about the bonuses being offered, look into the matter immediately and notify the affiliate to stop offering it because your brand is your #1 long term asset.

Your brand is what will keep those customers coming back to you for repeat business and continually buying your products. Another reason why you want to keep your affiliates for the long term is because if they know the right techniques (which you’ll enlighten them with) they will build deep relationships with the people that just bought through their link. So you want to encourage your affiliates to build a list and stay in close contact with your shared customers so they can continually promote for you, and both make a lot of money. So for your benefit, reach out to your affiliates and make sure they can capture leads effectively. It’s much easier to have individual affiliates build those relationships with you’re customers as opposed to having it all on you. With you and your affiliate marketers working as a team you all will make lots of cash, and build a solid brand.

Ladies and Gentlemen, that’s about all I have for you now. There’s just a ton of information out there that I could write hundreds and even thousands of pages about it, but for now I’m going to have to stop here. I would like to thank you for allowing me to help you in you new affiliate marketing venture. I hope you found these tips helpful, and I’ll be looking to post some more articles soon.

Professional Affiliate Marketing Primer

If you’re new to the professional affiliate marketing Internet business playground, then you’re no doubt wondering what affiliate marketing is all about. In simplest terms, it is marketing and promoting some other company’s products/services on the Internet. You, the pro affiliate marketer, promote through whatever means is available to you (your ezine, blog, email, online advertising, etc.), which then sends traffic and customers to another company’s website, who then does all the work — develop, sell and support the actual products and/or services; close the sale; process the orders, take payments and make delivery; etc. — for the paying customer. You, as the marketer and source of that business, are then paid a commission for your work. That’s it!

The whole business arrangement is essentially revenue sharing. The company that provides the product or service being sold is generally called the affiliate merchant, and he shares the revenue they generate with you, the affiliate marketer, for sending business their way. In most cases, the affiliate marketer drums up that business through various forms of legitimate advertising techniques on a wide variety of online avenues and platforms.

Note that generally, the affiliate merchant does not pay anything for the “marketing” and promotion until a sale has actually occurred. This way, the merchant can minimize both risk and expenditures. Theoretically, the affiliate can then be rewarded more handsomely for taking on that marketing risk and expenditure. However, since the affiliate marketer does not need to take on the risk, investment and expenditure of developing and supporting a product/service and administering a sale, the relationship is very much considered a win-win arrangement, with each party focusing on the part of the business they are good at and interested in.

Tracking, Calculating and Paying Affiliate Income

How the affiliate marketer essentially gets paid for his work depends entirely on the affiliate merchant. In practically all cases, the arrangement is wholly managed through an automated system, with the merchant using Internet server-based software that gives an affiliate marketer a unique link code or ID which the marketer must then use to identify all the traffic and customers he sends to the merchant. This is really the only way the merchant can properly identify, credit and compensate the right affiliate for any business generated.

In some cases, an affiliate merchant uses the resources of a much larger affiliate network service (such as Commission Junction, LinkShare, etc.) to administer its affiliate program. Some other merchants, on the other hand, choose to run their own in-house affiliate system, keeping their program independent from everybody else’s. In practically all cases, however, the basics of how an affiliate program tracks and calculates affiliate commissions follow what is outlined above.

The merchant generally specifies the financial terms beforehand (pay periods, minimum payment thresholds, when money is paid and how, etc.), whether it uses the services of a 3rd party service or runs its own affiliate program in-house. How an affiliate is ultimately paid will depend on these predetermined specifics, and they can run the gamut from being paid online through services like Paypal, having funds wired directly to an affiliate’s bank account, to having a physical check printed and mailed directly to the affiliate.

Although there is obviously a level of trust in the merchant involved in this arrangement, it works because not only is it to the affiliate merchant’s benefit to maintain a good working relationship with its affiliates in order to grow its business and ensure its continued success, the community of professional affiliate marketers is fairly tight-knit with extensive communications channels that quickly reports any shadiness and negative business dealings. On top of that, affiliate programs that run on third party network services offer an extra layer of protection and trust to the affiliate, with the networks helping ensure that all transactions are properly tracked, calculated and compensated. This is one reason that many professional affiliate marketers often adopt a policy that they will only work with affiliate programs that are administered through these third party affiliate network services.

Affiliate Program Selection

You, as the professional affiliate marketer, are free to choose whatever affiliate program you wish to join and market. In other words, you essentially choose which products and/or services you’ll be promoting (through your blog, web site, ezine, advertisements, etc.). It is not a light decision, since your income is very much affected by how well you match your total “offer” to your “audience” or “market.” That, however, is essentially your job and is part of what you as the professional affiliate marketer is compensated richly for.

In many cases, what affiliate programs you do choose is usually determined by your preexisting markets and audiences, For example, if you already run a gardening blog, then obviously the programs you would seek out would be gardening related or ones that you’ve determined would be of interest to the audience demographic your gardening site attracts.

If you are approaching this affiliate marketing business as a pure marketer, however, where the decision on how to market a product or service would be highly dependent on what it is you actually select to promote, how you select an affiliate program can be based on many different factors.

Some professional affiliate marketers, for example, choose programs based on commission size (high payouts per sale) or market size. These are business decisions you have to make, again, part of what you’re getting paid for. Here are some suggestions for beginners, however, that may help you get started.

Choose products/services you are personally interested in. If you are interested in gardening or golf, for example, then focus on products/services specifically for those markets. The plain simple truth of it is that it is much harder to promote a product or service that you really couldn’t care less about.

Choose products/services that do not embarrass you and that you are comfortable having your friends and family associate with you. For example, even though it’s quite lucrative, some professional affiliate marketers are unable to promote dating sites and services for reasons of embarrassment and discomfort.

Choose products/services you are already familiar with and fully understand. Even if you are not all that interested in automobiles or travel, for instance, you may already know more than enough about the products and services in those particular markets that you can actually sell in those market niches.

Select affiliate programs that provide you with the best sales support. This only comes up from prior research, of course, but it’s something you must do anyway. The sales support referred to here are things like training, advertising material and resources, extensive product information, etc. Obviously, the more tools they give you to sell with, the better your chances.

Remember: Being a professional affiliate marketer means that you are in business. Your business. Your success is ultimately determined by your decisions and actions. Good luck.

Affiliate Marketing 101 – What You Need to Know

What would you like to promote? Affiliate marketing is no stranger to the Internet, and certainly no stranger to network marketers and article marketing is still a successful way to promote your online business or blog. Affiliate marketing offers a phenomenal opportunity for people who do not have a lot of start-up capital or a lot of time to put together a giant campaign. Affiliate marketing has some very good advantages which include no product of your own, no inventory, no shipping or overhead and no real sales force. For the merchant it can also be a cheap and effective marketing strategy.

What are Affiliate Programs?
Generally speaking affiliate programs are marketing programs offered by web advertisers or merchants that recruit website owners and bloggers. The merchants provide banner ads, links and buttons for website owners to place on their website to market the merchant’s products. In turn, the website owner or blogger will receive a referral fee or commission when a customer purchases a product that is delivered via an affiliate link. One of the most common types of affiliate links are pay per click (PPC – Pay Per Click) however, increasingly now have been intertwined with email and content marketing.

The Product:
When you are looking for an affiliate program there are some things you need to consider before choosing which company you are going to take arms with. The product should be one of quality can also be a service. As long as it’s a product viable service and it offers something of value to the customer.

There are several types of compensation plans built into affiliate marketing programs, and one of them can be a residual program. However, not all affiliate marketing programs have residual programs built into them. If you can find one with residual funds, then that would be the way to go. However, there are some that actually offer a significantly high commission rate that may make up for the loss of the residual income. There are also others that offer a multilevel marketing structure of compensation. Now if you’re familiar with multilevel marketing than that may be an avenue that you would choose to examine.

But before jumping into any multilevel marketing program, you should read up on it and do a thorough analysis. The last thing you want to do is jump into an affiliate program that is going to be a serious waste of time.

Choosing an Affiliate Program:
Back in 1994 there weren’t very many affiliate programs to choose from and most of them were revolved around offensive content websites. Today, affiliate programs have a higher standard and it is a new way of doing business. There are many companies that have affiliate marketing programs lime Amazon, web hosting companies, domain name registrars, and electronic websites, Apple iTunes, bit defender, panda security, PC health boost, Commission Junction, eBay Partner Network, Google AdSense, VistaPrint and the list goes on and on.

You can find an affiliate program for almost anything you want to sell. It is a good idea to sell something that is related to your website, providing you have one. Not everybody that signs up for an affiliate program has a website to run it through. There are some that actually write articles and direct the URLs to their affiliate program.

Becoming an Affiliate:
If you want to become an affiliate it’s not that hard. You simply go to the website of choice and look for their affiliate link program. Usually what will happen is you will sign up and get a unique affiliate ID along with some banners and links. You then place these on your website so that your potential audience can click on those links which if they purchase, you will receive a commission. Just because you signed up for an affiliate program doesn’t mean that you’re actually going to drive traffic to your website. You still need to do something about driving traffic to your website or affiliate link like write compelling articles and become an expert in your field. These articles can be placed on article databases and are a sure way of driving traffic to your website or affiliate link.

What You Should Look For:
When you go shopping for an affiliate program, try to look for high affiliate commissions, long cookies and of course you would want to get a great conversion rate. Two-tier programs which have the same structure as a multilevel marketing organization and can be quite lucrative. Such organizations that earn billions in multilevel marketing and direct sales is companies like Amway which has been in business for 53 years, Nu Skin started in 1984 and Nature’s Sunshine started in 1972 so multilevel marketing has been around for some time. Residual affiliate programs is definitely the way to go. You continue to make money on that visitor month after month. The advantage here is that eventually your sales start accumulating where you’re making more and more money as opposed to the individual sale where you have to continuously make money to stay at the same level.

Where You Can Go:
There is services out there that have a database of a lot of companies that are doing affiliate program so you do not have to run around and seek out each individual program themselves. Companies like ClickBank where you sign up and select the affiliate program you wish to support.

Marketing Your Link:
Now let’s talk about that affiliate link for a moment. Most affiliate links are extremely long, hideous and some of them have special characters in them like a “?” or “=” sign. These links will not rank on search engines like Google very well and definitely cannot be added to pay per click like Google AdSense. What I would suggest is getting yourself a domain name and rerouting it to your affiliate offer. Let’s take for an example if I wanted to become an affiliate of a cell phone electronics company and I had a website I can actually write a review on a particular cell phone that I’m trying to market. If it’s more than one, then I could just pick a product or two to write my articles on. Anyway, I would try to register a domain name that may have something in it like cheap cell phones or something along those lines to help the search engines determine what your product might be.

Increase Your Sales:
What if you don’t have a website and you wish to increase your sales with affiliate marketing; what would you do? One way to market an affiliate program I briefly touched on is to write quality articles about the product that is being marketed. I truly suggest this strategy to increase traffic and sales. There are several article directories that you can post your articles to, but do not post the same article to multiple sites other than the article directory and your own site if you have one. Article directories can be a very good source of traffic because of their reputation and the amount of visitors they have each month reading your article. Of course, some of those readers will click on your affiliate link driving traffic to your affiliate program. I like Ezine Articles as an article directory, but there are others like; Goarticles, ehow, Examiner, Technorati, Thefreelibrary and much more, but that’s a good start. Don’t just read one article when doing your research and regurgitate the content from that one article. Try to do some in-depth study to get a complete understanding of what it is you’re writing about. Once you have that understanding, try to simplify your article by using either bullet points or topic list. To get people to click on your link you need to be compelled to do so, but the only way to do that is to write compelling articles.

Making money on the net with affiliate programs can be a rewarding experience if you know where to go the fine the right affiliate program and how to do the research needed. Just locating an affiliate program is not all you need to do, you need to weigh the gravity of that affiliate program. First determine what it is you would like to sell and do your research. Hopefully, you will look for something that accents your website or if you don’t have a website, something that you know a lot about so that you can write your reviews.