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| Choosing an
Affiliate Program
by Kevin Sinclair, CPA
What should you
consider when choosing an affiliate program? You need to think
about two key things: what business are you in and what
can the affiliate program provide to your customers.
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| No matter what business you are in, the
largest investment you make will be customer acquisition. If you have your
own product, and have acquired a base of satisfied customers, then single
product affiliate programs could work very well for you.
However, if your business is acquiring customers
for other businesses, that is, purely affiliate programs, then a better
choice for you could be affiliate programs with multiple products or
services. This will help you to capitalize on your investment in customer acquisition.
The key to choosing successfully is to ensure that the
affiliate program offers products that meet the needs of your potential
customers. Coupled with this is the need for the products to be high
quality and for the supplier to provide excellent customer service.
Remember, your credibility is on the line every time you refer someone to
buy through your affiliate relationship.
Some of the other factors I consider when evaluating
affiliate programs include:
Is the affiliate program a reputable business? You can
check out a business you are considering a relationship with in variety of
ways. Talk to the Better Business Bureau in your local area or a similar
body. In addition, I find web sites that monitor affiliate programs to be
worth looking at. The best I have found is Associate Programs http://www.AssociatePrograms.com.
Allan Gardyne pulls no punches and tells it as it is.
Does the program enable you to share in the lifetime
value of the customer? Great programs will give you commissions on all
future purchases of the customers you introduce. This is where the real
profits are. These types of programs, in effect, allow you to partner with
the supplier.
Does the program reward you for introducing other
affiliates? This type of program is commonly referred to as a two-tier
program. Often your customer may become an affiliate also and you will be
rewarded for this. |
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| Is the supplier interested in your success
as an affiliate? The top affiliate programs engage in a process of
coaching or information sharing to help you succeed. Affiliates are
provided with regular newsletters outlining what is working or successful
affiliates and providing updates and details on new products.
Is the commission reasonable? Commission rates on
commodity products such as books and CDs are low. This is because there is
very little margin in the products due to competition. Look for products
that have a commission rate of15% or more that are not commodities -
that way you will be better able to recoup your customer acquisition
investment.
Are statistics provided? The higher the level of
statistics provided, the better off you are. This will enable you to
measure the success of your marketing efforts and to determine the best
places to invest your marketing dollars. Insufficient statistics is a sign
that the affiliate program is not sufficiently interested in your success.
Are new products being developed regularly? To get the
full value from lifetime commissions, new products need to be introduced
on a regular basis. Without this, lifetime commissions can be worthless.
Also, look for consistent high quality in new products introduced.
How frequently are commissions paid? The more frequently
commissions are paid, the better off you are. Good quality affiliate
programs will pay you monthly. In some situations, commissions are not
paid until a certain level is reached. If the program you are considering
has this requirement, check how many sales need to be made before the
level is reached.
Have you read the affiliate agreement? This is a key
area that you should look at. Some affiliate agreements are totally in favor
of the supplier. Others are more balanced. Some agreements restrict your
ability to promote similar products from other suppliers. Most agreements
have anti-spam provisions. Look for agreements that are fair and that do
not stack everything against you as the affiliate.
While there are other factors that can be considered
when choosing an affiliate program, following the suggestions above will
help you to make superior business choices that will lead to long-term
success. |
| Article by Kevin Sinclair, CPA, of
Be Successful! Business & Personal Success
Resources (http://www.ksinclair.com/). He is the author
of 2 free ebooks:"Success Secrets" & "How To Choose A
Home Based Business". Kevin is alsothe publisher of "Be
Successful News" - a free ezine dedicated to your onlinebusiness
success - to subscribe, send a blank email to
pbsr-subscribe@listbot.com
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