What is Affiliate Marketing?
Affiliate
Marketing
is a revenue sharing venture between two businesses. Business one (your
business)
pays business 2 (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 money.
The affiliate
benefits by being paid to host your ad, and your business benefi ts 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 affi liates 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
affi liate program, you may want to consider working with an affiliate network.
Affi liate networks connect advertisers and publishers who can drive traffic to your
website. Additionally they provide tracking, reporting and handle all affi liate
payments. With new programs,
affi liates often feel more comfortable working through networks. There tends
to be more confi dence 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 affi liate networks.
Commission Junction – A
premium priced affi liate network. Since 1998 they attract a
majority of the larger brands and have many high quality B2C and B2B affi
liates.
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 affi liate networks offer the option of managing the
program for you. Although costly, your program may benefi t 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 affi liates and fans of your brand are aware that your
program is alive and welcome them.There are many ways
you can promote your affi liate 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.
Company 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.
Affiliate Forums –
Create a program announcement on A Best Web.
Affiliate Newsletters
Once your affi liates
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
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 affi liates 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 guide.
However, this is a great starting point for businesses looking to benefit from the
increased traffic and sales that affi liate marketing can deliver.
Affiliate Program Resources
Check out the VR Affiliate Program for a
program example and to learn more. Here are some
additional resources for you:
Ad Tax – Also known as the Internet Retail Tax
Affi liate Fairplay –
Resources for fair practices in the affi liate industry. Stay updated on the
latest info at AFP
Affi liate Summit –
Twice a year conference for all players in the affiliate marketing industry. Learn more
AffStat – Read the 2010
Affiliate Benchmark report by AffStat
Blogs – AM Navigator, 5StarAffi liatePrograms, Missy Ward, Affiliate Tip
Books – A Practical Guide to Affi liate Marketing, Affiliate Marketing on the Web
Feed Front – The offi cial magazine for
Affi liate Summit. Read the latest issue here
Performance Marketing Association – The
PMA is a
not-for-profit trade association for
performance based marketing professionals