Affiliate Marketing for MerchantsMerchant Affiliate Marketing
Guide to Establishing Your Own Affiliate Marketing Program
Rise your hands if you want to earn additional income with a 1300% return on investment, i.e. for every dollars you spend, you get 14 back. Of course, what I'm referring to is affiliate marketing. Alternatively, as it is used more and more frequently today - it' s better known as perfomance marketing. We will look at affiliate marketing from a merchant's point of views.
What it means to be successfull if you run your own affiliate programme. What other affiliate users have used, what are prospective ones that will help you decide which product and service to advertise, what kind of free affiliate programs are available, how to make an affiliate feel lucky and much, much more. Exactly what is Affiliate Marketing?
Affiliate-Marketing is a performance-based marketing tool - you as a retailer have a product/service to offer for purchase and I as an affiliate/partner advertise your products for a part of the campaign. You, the trader, determine how much a fee is, and you only give me a fee when you are sure that the sales have actually taken place.
PwC and the Internet Advertising Bureau UK have estimated that revenues from affiliate marketing have risen from 8 billion in additional revenues for merchants in 2012 to 13 billion pounds in 2013 (about 13.7 and 22.2 billion dollars respectively). More importantly, the ROI from affiliate marketing for merchants has increased by 21% compared to last year.
Wanting to broaden their income sources, they chose to try affiliate marketing. Having run the programme themselves for a while without success, they recruited an off-site programme managers to administer the programme and used an affiliate networking to find new partners and administer the technological part of the programme.
Then the affiliate business started. Today, they receive 11% of their total revenues from their perfomance marketing activities with the hope that they will rise to 20%. A part of their track record is their choice to earn 12% on closed deals combined with a 365-dayookie - which means they will be paying for any repeat buys made within a year.
The Depenhams, an UK retail outlet, was able to get a significant number of individuals to request coupons in stores through an affiliate group. Indeed, 57% of shop shoppers were in fact affilates for this promotion. It is clear that there is good cash to be made with affiliate marketing if you know what you are doing.
The first thing one understands in affiliate marketing is the cost side of it. Create cost - someone has to create a banner, video, land pages and more for the programme. What you need is someone who is in charge of the daily operation and maintenance of the programme. Affiliate managers perform functions such as recruiting associates, general communications with associates, policy development, optimizing the programme, reporting, newsletters and more.
Either you can establish a new role in your business or use an external programme managers (OPM) - essentially you rent a business to take over the managerial side of your partner programme. The path to take will depend heavily on your business volume, the products/services you are selling, your sales figures and more.
As a rule, affiliate manager (outsourced or internal) receive a basic pay + a service reward. You can either work with an affiliate ecosystem or use specialised internal spyware. Affiliate networking is like mediating, providing traders and affilates with tracker and service tools to run their affiliate campaign and make their lives simpler.
Among the key benefits are the already established affiliate ecosystem and the processing of all affiliate payment. Ongoing partner networks increase your chance of being spotted by chance in their programme indexes, which can be a good thing. However, on the other hand, you need to invest more of your attention in checking the qualitiy of the partners who join your programme, as you want to prevent working with vendors that could harm your image.
They can also be restricted by the softwares if you want to get into more sophisticated uses that go beyond the on-line power channel. Special softwares, on the other side, offer you more liberty and adaptability. One of the main problems is that you do not have direct contact with a affiliate ecosystem, which can be a real issue if you are just getting started or have no outdoor expertise.
Second, you process all those transactions that can be a problem the larger your wireless system becomes. Speaking of pricing, customized in-house deployments can result in higher recurring charges based on product pricing. The compromise, however, is that you don't give the vendor a fee as you would with many of the networks& in many cases, individual integrations with third-party call tracker utilities (for example) are much more seamless. However, you can't just use the call tracker to track your calls.
Featured Affiliate Networking Software: Concerning the in-house development we have the following to say: Of course there are many more sofware packages, many of them are good. Great places to look are listings of reputable writers here and here. To affiliate network we have:
By no means is this an exhausting checklist, as there are many more prospective sites you can consider, research and select the one that best suits your needs. Concerning the Affiliate, they don't seem to bother so much whether they are on a net or doing it themselves, according to the AffStat Report 2010 from the Affiliate Summit and the U.S. Affiliate Census 2009 from eConsultancy:
In order to be effective as an affiliate retailer, you need to make as much ready-made advertising available to your affilates as possible. These include advertising video, creating banners, creating promotions, creating products, land pages, but also e-mail submissions, text and more. Being solidly imaginative is what will help your partners the most.
If you are kind to your partners, they will be kind to you and this will help you attracting even more and better partners, which will result in more of your work. FbInfluence, for example, has spent a lot on the creation of a total of 14 different types of banner that can be used by advertisers for their promotions:
So it'?s no wonder that they are the most loved products in their class on ClickBank, considering how much work they have put into making different creative people for their partners. Most of the subsidiaries reported the discovery of new programmes on the merchant's website, according to the 2013 report of the Affstat.
First, you need to make your affiliate programme appear on your homepage: Second, Affiliate Hosting Page is no different than any other hosting page on your website. It is essential that you are able to convey the value of your product and your programme so that they know it is rewarding to share it with their audiences.
Whilst you can "get away" without having a well-designed customized target page for your affiliate programme, remember that you also communicate directly how much of your investment in the programme is. Yahoo Finance's Jeff Macke will explain very candidly how/why these kinds of rate hikes can be accepted by the markets.
No extra cost is transferred to the client, and if you work with good partners, the compromise for lower profit is a higher level of in-bound clients. Usually this method of paying is reserved for those stores where it is very simple to create a lead and the item is either easily sellable due to restricted opportunities or where the client has an immediate need.
Mazda, for example, was able to get 29% more folks to test their new automobiles through leading gene affiliate campaigns on-line. Working in close collaboration with auto reviews websites and blogging, they provided more and better assistance than before + gave them more scope on the creativity side. You really first have to know your own and your partner's audiences to make it work for both.
AffStat Report on Affiliate Marketing 2013 (page 14) says commission is the most important thing for an affiliate when selecting a retailer, so how big should it be for my products/services? Also, things like the assistance you offer your affilates, creative supporters you offer, affiliate managers and more. To make a good case on how to mess up your affiliate relationships entirely, please see this one.
Finally, if there is one thing that can form or crack your affiliate marketing effort, affiliate fees are - you are paying too little and no one will want to work with you, you are paying too much and you are eating into your margins. Recognized as one of the most prestigious votes in affiliate marketing, Geno Prussakov, AM Navigator creator, suggests the following commission calculation model:
To calculate the maximal fee you can pay, begin by putting together all the associated expenses - such as site charges, creation fees for your creatives, landings pages, and even administrative expenses associated with operating such a programme. You can also provide higher affiliate fees, based on your company's needs, to partners who continuously deliver high value customisation.
Amazons does this with its Amazon Associates programme. And the more referrals you make through affiliate referrals, the more commissions you earn: Moreover, it encourages the partners to do even better work in advancing their produce for more part of the campaign. Considering that and my retail of $30 and marketing cost, I have this graph per product:
I have an annual marketingudget of $3000 and I am planning to market 1200 T-shirts during the year. In this sense, I charge that my marketing costs per T-shirt are 2.5 or 8 dollars. I' m willing to give up to $6 for my affiliate programme comissions. Next, when I look at my competitors, they offer $4-$5 per T-shirt fee.
In addition, they deliver moderate levels of creativity in the form of imagery, posters and web texts. Steps C and C - Considering the kind of assistance that my rivals are offering, I am optimistic that I will be able to better creatively assist my partners and can therefore opt for a $4 basic fee that will leave me $2 for bonus, kicker and personal deals.
It' s timeto start the programme, but starting without a partner on the boat is somehow stupid - without them we won't make any sale. To get your partners to participate in your programme, the main thing is to be seen and actively involved in the places where your partners are located. Such places as affiliate networking, affiliate fora, blogging and more.
Another concept is to conduct a PPC-Campagne for your partner programme to win partners. Another good suggestion would be to join the top affiliate programmes in your alcove to get an inside view of who the top affilates are, what kind of assistance they receive, creatively and more.
Next thing is to get in touch with them directly and explain what you are about, what you have to provide, what kind of assistance you can provide and much more. Their aim is to get them to at least review your programme and possibly participate. Next thing is to get in touch with them directly and explain what you are about, what you have to provide, what kind of assistance you can provide and much more.
Their aim is to get them to at least review your programme and possibly participate. In addition to your "normal" group of affilates, you also have this other specific group - Superb Affiliates. They are the individuals who can single-handedly earn 50 or more per cent of your affiliate earnings.
Like Geno Prussakov's notion of a great partner as someone who is ripe, who has the ability to push many sells and make at least five digit monthly profits. Geno says it's not unlikely that 1 - 3 affiliate supers will generate 50 - 70% of all affiliate revenue.
You are specifically looking for programmes that have a high level of turnover, along with one that will share a reasonable proportion of revenues with the partner. Just like the recruitment of "normal" affilates, it is all about research and the preparation of a hitlist. You have to make a kill proposal that includes things like your convert rates, your commission for your actual exposure and your creativity security.
Most of the time, superpartners will test a programme to see how it affects their audiences. And now that we have affilates, how about we keep them in the game? Holding in mind that you are likely not the only commodity that your associates will benefit from, it is important that you stay top of the minds when it comes to advancing your material.
An affiliate newsletters is the simplest way to do this. Also, keep in mind that the affiliate is also a consumer, so many of the basic concepts of e-mail marketing and e-mail on-boarding still hold true (and may even be more important). The other thing is to make sure that you or whoever runs your affiliate programme is always available for help and answers.
It is the brainchild to be there when your partners have a question and need answers. Concerning the update rate, the partners themselves reported that they preferred to be approached either once a month or once a week. These two groups cover 86% of all respondents according to Affstat's 2010 Affiliate Report:
Affiliate marketing, as we have seen, can be a good way to attract new clients and increase your revenues if you have taken the trouble to get it right. Starting from timing the selection of the right affiliate, providing the assurance they need to be successful, keeping in touch with them, to selecting the right individual to run the game.