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Setting up an Associate Program

 

Following articles are all written by Corey Rudl. I am a big fan of Corey. He knows things and how to explain them with simple and direct words. As you may expect, he wrote them with the purpose of selling some of his products. Don't care about it, you don't have to buy anything... just read on and take the best out of it!

 

(Click on the subjects to go directly to the article – have also a look to our related FAQ)

 


1. How to Easily Set Up your Own Associate Program

 

2. How to Get Thousands of Resellers/Associates to Join Your Associate Program and Sell Your Product or Service

 

3. The 8 Keys to Making Your Associate Program Successful!

 

4. How Associate Program Tracking Software Works And Why It's One Of The Most Important Ingredients In Running An Associate Program

 

5. Why Selling Your Product or Service Through an Associate Program is Such a Powerful Marketing Tool!

 

6. Learn How to Choose the "Right" Associate Program Software

 

Setting Up Your Own Affiliate Program FAQ

 

Compare Associate Program Software and Networks


1. How to Easily Set Up your Own Associate Program

 

There are several ways you can set up your Associate Program or compensate your associates.

The first is basically a click-through program... whereby anyone who clicks-through on the link is paid a referral or click through fee. It is pretty simple, if an associate displays your banner, text link, or button and someone clicks through that link, you pay your associate a small fee (usually between $0.05 to $1.00 depending on your product and your margins).

 

The second method is a pay-per lead program. The associate is paid for each "lead" they send you. The associate can post a form at his site for you, and for anyone who fills out the form and submits it, you pay a referral fee to the associate for that lead. Or your associates display a banner, text link or button to your site and if someone clicks through they are presented with a form they can fill out. That form can be anything… a request for more information about a product, a request for a quote, or do something like downloading a trial version of a software program. Regardless of what the visitor is asked to do... your associates are paid for each lead they send you (or each time a form is submitted).

 

The third method is a revenue sharing program. This is by far the most popular type of Associate Program. Basically you are offering your associates a portion of the profits on everything that is sold.

This is the way I recommend you do an Associate Program. With this kind of program...

you are guaranteed to make money because you only pay for sales which are generated.

 

For example, if you set up a click through program you could potentially bring in 50,000 visitors... and even with that level of traffic, you are not guaranteed any sales! You could be paying out tons of money in click throughs but if you don't have a good visitor to sale conversion you could end up not making any money in sales.

It is also possible that someone can "cheat" with a click-through or pay-per lead program as they could have software that automatically clicks through the link generating them a referral fee when no real human being has actually visited your site.

If instead, you set up a revenue sharing program... you are guaranteed a profit because you are only paying associates when your product is sold. So in the example above, if you brought in the same 50,000 visitors and didn't make any sales... it would mean you had a very serious problem with your sales copy or your website... but at least you are not in the hole thousand of dollars that you owe associates for the visitors they have sent you… and you have no money to pay them!

 

When it comes right down to the "nitty-gritty", the only real drawback of having Associate Programs for your product is the cost of installing the software to keep track of all your associates, traffic, and sales generated. There are a few other expenses… but they are mostly minor costs (i.e. taking care of your associates by helping them make sales, answering their questions via email, and sending your associates their checks in a timely manner).

 

There are three ways of setting up how you keep track of associates and sales. The first is setting up "mirror" pages, the second is hiring an Associate Program service, and the third is to purchase your own associate managing software. We will go through all the pros and cons of each in detail.

 

Method #1

The first method is to set up a "mirror page"... or even a mirror site.

Basically you set up a separate page... or a separate site, for each associate. This is a VERY time consuming way of doing things, but there is almost no cost involved other than your time. Here's how it works...

 

Using marketingtips.com as an example. You'd set up a page for your 1st associate called http://www.marketingtips.com/info1.html. Then, as you got more associates you'd add pages... i.e. www.marketingtips.com/info2.html and .../info3.html .../info4.html and so on.

These would all be identical pages. The only difference between.../info1.html .../info2.html .../info3.html etc. is that it has a different tracking number. You actually hard code in the associates tracking number (i.e. info5.html would have the tracking number or associate number of "5") so that when you get an order, a hidden code in the order form prints the code. This allows you to manually track and give your associate credit for the sale.

Now this does work and is great for doing a joint venture or two with a few people… however it has MANY drawbacks.

 

First of all you can only sell one product. So if you have one sales letter which sells one product, doing it this can work initially… but having multiple products at your website or having multiple pages will cause you nothing but havoc.

 

But say I get 100 associates (and it's pretty easy to get 100 associates… in fact it's very easy to get 100+ associates in a matter of 30 days)... now if I want to change something like the price, or I have found a better way to sell my product so I want to change the sales copy, or I want to add in a graphic, or whatever; I have to go to every single webpage and change them all manually, all 100+ of them. It's a HUGE job!

 

Trust me, I used to do it this way back in 1995 when associate/affiliate software was not available. Updating the pages ate up days of my time.

 

There is also the fact that you can't offer any of your associates real time statistics. They can't tell how much they've earned until the end of the month when you "manually" calculate it (which can take you a couple of days if you have 100+ associates). They don't even know how many visitors they are getting or how many sales they are generating... they have no way of tracking it on this type of system. And on top of all that, they have to have 100% trust in me that I'm not ripping them off because I am the only one who has the "true" visitor and sales numbers… they have no idea if they are selling the numbers as I report it to them.

 

It's a pretty primitive way of doing it. It was a very old way of doing Associate Programs and you can "shoot yourself in the foot" because most people will not sign up with you if they don't feel comfortable that you are reporting to them in real-time, all the time, about how they are doing with sales. Heck some of the Associate Program directories (which I will mention later) won't even list your site on their list if you do not have real time tracking software.

 

Now the other problem could occur if you had a site selling four products, and wanted people to roam around your site, read articles and all that kind of stuff; but still tracking the associates visitors and sales. It's almost impossible to set up a reliable system using this method. There would be no way to track your visitors or associates from webpage to webpage. The only way to do this is to set up a whole separate individual site for every associate within your main website (a VERY big job!).

 

It would take HUGE amounts of room on your web server and there is no way you could manage it. And if you ever wanted to change one small thing it would literally take you weeks to complete. It's totally unrealistic!

 

In our case, with thousands of associates, this would be an impossible amount of work!

Ok, I know I have stated a lot of negative things about this method… so you may be asking, "What is the benefit to this method?" The answer, unfortunately, is only one benefit… it is really cheap for those who have no money and lots of time on their hands… as setting up takes only your time and knowledge of HTML. But remember, you may do more damage than good as many associates will not join because they can't see their stats or have no confidence in you. Also you will get a low rating from many associate related directories as you will look like a "basement operation". But I guess having this system is better than having no system.

 

Method #2

Let's move on to #2, hiring an Associate Program service.

You can hire a service such as Safe-Audit or ClickTrade. They handle all the details as far as tracking your associates, tracking the sales, handling the money and basically charge you a healthy percentage of each sale (sometimes up to 30% of the money you are paying out to your associates) to organize all this and keep track of it. For example there is ClickTrade (mentioned above)... they don't have a high set-up fee but charge you 30% as your payment to take care of all the tracking, reporting, handling of money and so on.

This is a very large chunk of your profit!

 

It may make sense at first as there are no set-up costs, but realize that if you do your Associate Program right, you can be paying out thousands of dollars in referral fees very quickly. This can translate into hundreds and usually thousands of dollars in fees you have to pay them… each month. I am not trying to talk you out of it, I am just saying that you want to look at the big picture. If you plan to stay small, they may be for you, but if you start with them and grow, it is extremely difficult to "dump" them and move on to a more cost-effective way of managing your associates. To a certain extent, you are married to them, so be aware of that.

 

There are a few companies (i.e. LinkShare) which don't charge you such a large percentage for each sale but do charge you a couple thousand dollars to get established... and then take a smaller percentage of your sales as their "management fee".

 

This is not a preferred way to do it as far as I'm concerned because for less than $1000 I can show you how to do this yourself from scratch. How to get your own software program and run your own system and never pay a dime of your sales to anyone but yourself, (which in my opinion, is the way to do it)! The reason you get involved in setting up an Associate Program is to make more money; you shouldn't be paying all of it to another company!

The companies mentioned above are great for people who don't know any better and see it as a more cost effective method compared to the $10,000+ associate software that is available on the market. But to be blunt, there are ways to get the same functionality for a fraction of the cost (for under $1000) as I mentioned before… if you know where to look and what to look for. We will discuss the differences between the software out there in the next few articles.

 

Method #3

Purchasing your own associate/affiliate software

As far as purchasing your own software goes... some of the Associate Program software packages I've seen selling for under $1000 are very hoaky. They don't have the proper tracking mechanisms and aren't flexible enough to handle a variety of situations. What I mean by that is that they may:

Generally speaking, almost everything I have seen (about 20 different pieces of software which sell for under $1000) is mostly garbage! There are a few exceptions to the rule, but even those pieces have their problems (i.e. a few charge a set up fee of $500 and then a $1.00 per associate you sign up - which can be thousands of dollars as you sign up associates… or software that only tracks certain types of orders, etc.).

 

The good stuff that I've seen sells for $5000 and even $7000 and more. And some of them are pretty slick. However they are not cheap... and represent a significant investment for most small businesses!

 

Don't worry, you don't have to spend this kind of money.

 

Many of you are aware that we designed and developed our own software from scratch when we started up our Associate Programs many years ago... basically because there wasn't any software out there that did what we wanted and how we wanted... we really didn't have a choice!

 

To make a long story short, we have spent over $32,000 to develop our software (it has been costly) and we have put in features from a "marketing" point of view, not a "programmers" point of view. We have seen the need to get software out there that has the same features and functionality as the $5000+ software, but at a reasonable price tag which most small business owners can afford.

 

We have modified our software and made it "generic" so it will work with nearly any product or service our clients have (not just our products anymore). We've hacked through all the pros and cons, the problems we encountered, and done the "learning curve" for you. We've developed this associate/affiliate software which we call AssocTRAC… and we are going to offer it to our clients for only $677.

 

Click here if you want to know more about the AssocTRAC software, what it does, and how it works.

 

In my opinion this is extremely underpriced for what we are giving... but we wanted to make a fantastic program available to our customers at a reasonable price.

We're actually quite excited about it, as it will be the first time this quality of software has been available at such a drastically low price (as I mentioned we have spent over $32,000 developing this software to make it a VERY powerful marketing tool). In order to give all our customers the best service we can, our AssocTRAC software will be sold on a first-come, first-served basis!

 

Associate Programs are a powerful and really cost effective way to market your products. In fact, I can't think of a better way to market your products or services with such a low risk! It is absolutely fantastic.

Do you want to know how much impact it can have on your business?

I am aware of two clients who started up a reseller program… and then had to shut it down because they got so many orders!

They had to suspend marketing because they were so far behind getting the orders fulfilled and keeping up with customer service requirements. So it is a very, very, very powerful way of marketing!

 

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2. How to Get Thousands of Resellers/Associates to Join Your Associate Program and Sell Your Product or Service

I will warn you even before you read this article that it is going to be a blatant plug - I have no way around that... and let me explain why.

The reason I titled this article "How to Get Thousands of Resellers/Associates to Join Your Associate Program and Sell Your Product or Service" is because this is probably one of the most popular questions I get (and a very complicated one to answer)... and if I didn't give you some answers in this article, there would be hundreds of people emailing us asking this exact question.

 

To be very frank, other than the important steps you must take to make your associates program successful (i.e. good automated associate software, a website that has a great sales conversion ratio, paying out high commission, etc), all that effort is worthless unless you can get a whole lot of people selling your product or service online. So getting resellers/associates to join your program and sell your product or service is probably the most critical key ingredient to making your associate program wildly successful (and putting hundreds of thousands of dollars in your pocket).

 

You see, you can have the best software, you can have the best product, the best customer service, the best commissions... but if you cannot reach hundreds if not thousands of people online that have the potential to represent your product and drive traffic to your site, all your effort was for nothing.

 

Okay, let's move on.

I have techniques that we use to generate hundreds of associates in just a few days after you start your own associates program... and thousands of associates within just a couple of months. It is actually quite easy... if you know what to do and how to do it (which I will show you).

But my problem is that my clients pay me very good money to give them all the "insider" techniques and tips that makes a fortune online (they pay me $640/hour and I am booked weeks in advance!). I better have information for them that gives them an unfair advantage over their competitors wouldn't you say?

 

I save my "killer" information, tips, and techniques for my paying customers... the ones that purchase my course (where I reveal EXACTLY how I made millions of dollars online), clients that hire me for consultations at $640/hr, and people that purchase specialty software or products from me like my new Cutting Edge Newsletter, etc.

Wouldn't you do the same for your clients?

 

Heck, if you hired me for $640/hr and I could not give you ideas to make 10 times that amount in our hour consultation, I would feel extremely guilty. If you bought my 500+ page Internet Marketing Course, wouldn't you expect to get information that is not available anywhere else? Wouldn't you expect that information to help you make 10 times, if not 100 times what you paid for it?

 

Of course you would!

 

And that is my point here.

I have to save my real "killer" stuff (in this case "how to get thousands of associates to joining your associate program and sell your products online")... the information and tips that make my clients a fortune online... I have to save it for my courses and manuals.

 

What I am trying to get to here is that the question that I always get "How do I get hundreds, if not thousands of people to join my associate program and promote my products and services?" is answered in my new course that comes free of charge with our new AssocTRAC software (you cannot purchase the course separately).

 

This will give my AssocTRAC software clients an unfair advantage over the other associate programs out there. The course is called, "The 12 Secrets and Tools to an Outrageously Successful Associate Program". The AssocTRAC software without this course is a fantastic bargain on its own. Click here for more details on AssocTRAC and the course that comes with it free of charge.

 

I my opinion, the course alone (without the AssocTRAC) software is worth $677 as it will give you the keys to making an insane amount of money with Associate Programs.

The manual makes running a phenomenally successful associate program and earning hundreds of thousands of dollars... a total "no-brainer".

 

This manual will give you my few guarded secrets that will explode your sales and show you EXACTLY how to bring in hundreds of thousands of dollars in business in as short as 30 days from when you start. I have done it, and I will show you how you can easily follow in my footsteps to do the same.

 

If you own my Internet Marketing Course, you know that I preach that the Internet is one of the most powerful business opportunities in the world right now, but it is hard work at first. The advantage is that once you set it up and do all the initial work, you just automate the business... then you sit back and enjoy the profits for years to come. In the course I talk about how there is not "one" magical marketing technique that will make you rich... it is a combination of many promotions that will create sales for you (and create wealth for you).

Well, for the first time, I am going to say something that is against that statement.

Associate programs are the one marketing technique that can make you very successful and very wealthy in an extreme short period of time. Even if you screw it up somehow (which is hard to do), you will still make money (although not as much as you could have). It is that powerful!... and that easy if you know what you are doing (which I teach you in my new course that comes with AssocTRAC).

 

So what makes us experts in Associate Programs?

We have been doing associate programs since 1995 (when Amazon.com starting doing it)... and we do over 1 million dollars in sales ($1,000,000) from our associates program EVERY YEAR (and that is not even including the backend sales!). So we know what we are talking about when it comes to getting associates to join and make you money!

 

Like I have always taught, model someone that is successful. I am giving you the key here, it is your job to unlock the door and let the money flow in.

 

If you don't get on the Associate Program "bandwagon" now, you are going to be left behind. They are really hot right now, but still in the infancy stage. If you get on now, you will make a ton of money and crush your competitors… if you don't, they will crush you. This is the next business revolution of the Internet… I am not kidding! Be prepared, in the next 12 months, to see even more of the biggest names on the Internet get heavily involved in Associate Programs because they are going to realize finally what they are missing.

 

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3. The 8 Keys to Making Your Associate Program Successful!

1) You must have a quality product and fantastic customer service.

 

I'm not going to pull the wool over your eyes...to start off with, you must have a great product, and fantastic customer service. You MUST have these before you can develop an Associate Program that will build loyalty with your associates.

 

This is critically important! To build a successful Associate Program your associates must know that you have a great product, that you offer great value, and that you give fantastic customer service (so that when they recommend you or send people your way they KNOW you have a quality company). If you provide all of this, they are going to feel proud of the program. They have to be able to trust you with their customers. They have to be able to trust that you know what you are doing and that you will treat them fairly and honestly. Your Associate Program won't last very long if you get a bad reputation.

 

Given that you DO have a great product or service and fantastic customer service...there are dozens and dozens of things you can do to make your Associate Program a successful one! I'll discuss some of them here.

 

2) Choose your associate program software wisely!

 

The first, of course, is your choice of Associate Program software. The software you use is going to determine how you set up your program. It's going to determine where you spend your time (on marketing or on administrative trivia)... and it will be a factor which some of your potential associates will use to determine whether or not they will sign up with you! I am not going to spend a huge amount of time discussing software in this article... because I am going to discuss it in DETAIL in the articles that follow.

 

3) Your Associates can also be your customers.

 

They join your affiliate program to earn some money, but you can actually sell your products TO them also. They get a discount through the kickback they receive from their own sale. It's a great way to actually generate some new customers AND once your associates use your products or service they can use their own testimonials, increasing the effectiveness of their marketing efforts!

 

If you have a situation in which you sell a lot of products, you can actually get associates to sign up with you solely for the purpose of buying your products at a discount. They buy at regular price but at the end of the month they get a referral fee on their own purchases, so basically they are getting a discount. This might work for example if you are selling something like vitamins. MLM companies have been using this sales technique since the beginning of time! It works!

 

So it's a natural thing to actually sell products to your associates because if they buy from you they are getting a kickback (i.e. they are buying at a discount) and you are supporting your associates. It is a natural thing to do, don't fight it!

 

Some Associate Program owners say, "NO, you can't buy through your own Associate Program" and they fight it. They're losing out! Don't fight it! This is a great way to get new customers, new business. Let it happen. Encourage your associates not only to sell your product but to buy from you.

 

There's another benefit...it generates a lot of customer loyalty. You allow them to save money by buying from you through their associate membership. And you make them money when they sell for you. This is a fantastic way to build customer and associate loyalty.

 

4) Pay out excellent commissions and realize the backend sale.

 

You have to pay out good associate commissions as referral fees. The more room you have or the more profit you have, the more you should be giving to your associate. There's one reason most of your associates have joined your program... to make money! The more money they make, the more motivated they will be to market your product or service in a variety of ways. The more money they make, the more work they will put in on your behalf.

 

What it comes down to, and what most associate program owners do not understand… is that most of your real profit is on the "backend". Don't be afraid to give away a lot of your profit on the "front-end"… it is the customer who is worth the money. Once you have the customer, if you have quality products and services that are great value, you will generate a lifetime customer from whom you can profit for years. This is why you, as an Associate Program owner, can afford to give an associate a lot of money. You're not looking at immediate profits... but at the potential of repeat sales or potential back-end sales. If you give your customers good value, a lot of them are going to come back and buy and buy again. Over 50% of my net income is made through back-end products. So - realize it is very important!

 

So don't look just for the money made today, look for the money you can make over the next 6 months... or the next year, or even 5 years! You may only be mailing your customer something which is worth $50 or $100 today, but they may buy $2000 worth of merchandise over the next two years! Understand and realize that the purpose of building your Associate Program is not only just to make money today, it is about getting that customer, holding on to them and making a sale 6 months from now or a year or 2 years from now!

 

5) Do business with your competitors.

 

You will be surprised to know that you may end up doing business with some of your competitors! And that people you originally thought were competitors really aren't... in fact they can be someone you actually do joint ventures with (especially if your product/service is similar but still different)!

 

This may sound corny, but you will not believe how many times we do business with our competitors. When it comes down to it, many of the people who purchase our information or software will also purchase our competitors'. So why not work together and both profit from that?

 

For example, I do business with companies people consider to be my competitors. But we actually have established good working relationships. We sell each other's products! If I believe someone has a good service selling great copywriting skills... and they have a manual on copywriting, I will recommend them and I am sure that in return, referrals and recommendations come back in my direction.

 

Be prepared to look at your "perceived competitors" products... and if they would be of value to your customers... negotiate a deal, become part of their Associate Program. Look at what you can offer your competitors' customer based on what they would want and on what you both could profit from. Yes, you may find that you actually can be partners with some of your competitors and it can be very interesting. So, be prepared for this to happen.

 

6) You must have a great visitor to sale conversion ratio.

 

To have a good Associate Program you must have a good visitor to sales conversion ratio.... This is one of the things you should look for before you really ramp up your associate program. You need to be able to convert visitors into sales in order to keep your sales associates happy. If they send thousands of visitors your way and after a month or so realize you are not converting the visitors into sales, they will not be very pleased with the results.

 

Test, test, TEST, TEST, TEST, test!

 

Test everything! Don't be afraid to test!

 

If you don't have a site which converts enough customers into sales… or maybe you have a site which doesn't even generate enough visitors to check this… or maybe you want to do this associate program, but don't have a product or service to sell… then you need a copy of my #1 best selling Internet Marketing course called, "The Insider Secrets to Marketing Your Business on the Internet". It guides you through the fastest way to make a business successful online and put cash in your pocket (it even gives away some of my best ideas for a product or service you can do online). The course also includes a special 6 month subscription to my private newsletter called, "The Cutting Edge" which only my course purchasers get, keeping them up to date on the newest and hottest techniques we are using to make hundreds of thousands of dollars online. This is the stuff that I don't give away in my free newsletter, instead it is reserved for my clients to give them an unfair advantage against everyone else online - the true "gems" in online marketing secrets.

 

A great thing about the Internet is that you can test very quickly. So if you have ad copy which isn't doing very well, or a banner which isn't selling well, you can put a new one up and get the results in minutes or hours, depending on how much traffic you have.

With traditional forms of advertising you had to wait weeks or even months to get the ad in, wait for it to come out and then get the results in, in order to tabulate it. It would take months and months to test for one thing.

 

On the Internet you can put up a banner and test it. Then only a few days put up another one to see the differences in results and find out which banners pull really well for you. You can also do different sales letters and different site designs to find out what is producing the best conversion ratio for you… all in a matter of days, not months as in traditional advertising.

For example if your banner says, "FREE gardening newsletter".... and what you want to do is sell them a gardening product... your visitors may not be very qualified because they may not be willing or interested in buying anything... they are looking for something free.

You may have a very low sales conversion ratio (1 out of every 400 to 600 visitors buys, which is not good).

 

If you have quality visitors coming in, people who want to buy what you are selling, then your conversion ratio should be better. Your banner might read, "INCREASE THE GROWTH OF YOUR PLANTS BY 30% ALMOST OVERNIGHT FOR ONLY $25.00". You'll bring in less visitors, but very qualified visitors. You will probably get a conversion ratio of one out of every 50 visitors… a lot better than having lots of unqualified visitors.

 

But you may have had to test 20 different banners to find the one that really pulls! A key to marketing success is to test everything! And then tell your associates the results of your tests. Tell them what works. Get them to use what works!

 

As mentioned before, in my Internet Marketing Course, I teach exactly how to make a successful website, drive traffic to that website and reap the profits… all with the least amount of work… and how to automate it so you are only spending minutes a day at it once it is set up… plus hundreds of other things on how to make money online (over 500 pages of information). Learn simple things like how to design banners which pull double or triple your competitors' banners… wouldn't that be worth something to you?

Your associates are actually working for you for nothing until they make a sale... you can not lose money!

The plain fact is that this is the most advantageous way of marketing there is right now online, because you are not paying them per hour or per ad... only for sales made!

 

7) The 12 Secrets and Tools to an Outrageously Successful Associate Program.

 

Ok, to be very straightforward, there are real "killer" ideas on how to instantaneously guarantee your associate program makes you money, but I have saved these for a special course which only comes with my AssocTRAC software.

 

Why?

Because my clients pay me $640 per hour and I can't give away everything for free. I am sure you understand. By putting this information into my special manual, many people who purchase my software are guaranteed to make their associate program so successful, that it will blow their minds, and blow their competition out of the water… just like I have done with my associates program. In the manual, I reveal all of the "nitty gritty" on EXACTLY what you have to do to make hundreds of thousands of dollars with your associates program… and exactly what I have done with my associate program to make it so successful so you can model your success after my success.

 

It is a "no-brainer".

You will learn how to easily get thousands of people to join your associates program and sell incredible amounts of your product or service. You simply have to read the manual and follow my steps, and you are on your way to adding hundreds of thousands of dollars to your bottom line. I just can't give that away… I have to save that for my special clients… like you… who believe in me and want to invest in my AssocTRAC software. I want to give them an edge that they can't get anywhere else - I am sure you would do the same for your clients.

 

The beauty of Associate Programs is that you have hundreds or even thousands of people out there promoting your product for you.

 

This manual will give you my few guarded secrets that will explode your sales and show you EXACTLY how to bring in hundreds of thousands of dollars in business in as short as 30 days from when you start. I have done it, and I will show you how you can easily follow in my footsteps to do the same. Click here to get details on the manual, The 12 Secrets and Tools to an Outrageously Successful Associate Program and our new AssocTRAC associate software. These are the only two things you need to start your own associate program right away and be on your way to having hundreds (if not thousands) of people on the Internet selling your product for you.

 

8) Find the "right" associates that can sell thousands of dollars of your product or service easily.

 

To be very blunt, this is what really MAKES OR BREAKS AND ASSOCIATE PROGRAM. And as I was just telling you in the last point, I am going to save this really killer stuff for my special clients that use my AssocTRAC software. These "gems" of information will give my special clients an unfair advantage over other associate programs out there (including their competitors!). I am sure you would do the same for your clients. If you are interested in what I think is one of the best associate program software packages out there on the market, Click here for more details and how the software works.

 

Associate Programs are "hands down" the hottest and fastest way to sell your product and make a fortune online right now! Don't take that lightly, we have been doing this for over 4 years and it has just EXPLODED in the last 8 months. Ride the wave before it is over (or before your competitors beat you to it).

 

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4. How Associate Program Tracking Software Works And Why It's One Of The Most Important Ingredients In Running An Associate Program.

Technology has really progressed rapidly when it comes to Associate Program software! Let's take a look at what it does... how it works and why it is so important.

There are many packages of software out there… and you literally have to be a programming expert to figure out the differences, specifically the advantages and disadvantages of each.

What is even more confusing… the prices for this type of software range from...

$300 to over $12,000!

 

Yes, I am not kidding… there is that much of a fluctuation. Over the next two articles, we will go over the pros and cons of each and show you the most economical solution.

The main purpose of Associate Program software is... tracking! Visitor tracking, associate tracking, sales tracking. In other words, you need to be able to track your associates, and the visitors they send to your site - and the visitors who buy.

There are a number of ways this can be done.

 

There are many, many ways, but the most common are:

 

Please note that these systems have one of the following:

 

Just to refresh, in case you have forgotten, all associate programs assign an associate a special URL, which is specific to them so when someone links to their site, they know who sent them the visitors and if that visitor buys. For example, with our Internet Marketing Course, the URL may look like http://www.marketingtips.com/t.cgi/44233. If someone posts this URL at their page, with a text link or banner, anytime someone clicks through that link to our site, we know associate #44233 sent us that visitor. If that visitor buys, we will give that associate a referral fee as a "thank you" for sending us the customer.

 

It sounds very simple, but the software is very complicated, as it has to account for many different types of situations, which we will go over in this article.

 

Tracking through HTML pages

 

This basically means you are setting up mirror pages or mirror sites. I've already described how this works in one of my previous articles (click here in case you didn't read it)

 

Cookie Tracking

 

This method of tracking the visitor and sale offers some MAJOR advantages… but a few disadvantages as well.

 

Let's use an example here. If you had an associate promoting your products and you were using cookies to track that URL, you may give them a URL which looks like www.yourdomain.com/?12345 or www.yourdomain.com/track.x/12345/.

The associate number in the URL is a unique number, which is used to track an associate whether they use banner ads, graphics or text links.

In this case, if a visitor comes through an associate's link to my site, a "cookie" is placed in their browser called "12345". A cookie is a piece of information which stays with their browser so if they come back to the site at anytime, we can ask them if they have a "cookie" for our site, and the browser will tell us it is "12345". I will get to the importance of this in a moment.

 

We track them as a visitor through our site. If that visitor places an order we know which associate number gets credit for the order and they get a commission for the sale.

 

In other words, the cookie, which is placed in the visitor's browser, is the associate number... allowing us to keep track of which associate sent the visitor to us.

 

Let's go over it in a little more detail (and in "laymen's terms" so everyone understands it).

When a visitor clicks through on a banner or text link from an associate's site to your site... the first thing that happens is our software asks the visitor's computer... "Do you have a cookie for our site?" If this is the first time the visitor has come to our site the answer would be "NO" from the visitors browser... and our website would give them a cookie which is encoded with the associate's number (in the case above, that would be a cookie which reads "12345"). If the visitor leaves, that "cookie" (or associate number) will stay with them. If they come back a few days later to our main URL or any webpage on our website, our software will ask if the browser has a "cookie" set. The browser would say "YES" and give our software that cookie. Then underneath all of the webpages it "remembers" the number "12345", as the visitor surfs through the site and if that visitor orders something, our website records the "12345" as the person who referred the visitors to us and that associate (associate #12345) gets a referral fee for the sale.

 

Still with me?

 

The beauty of cookies is that it makes it very easy to track, because no matter how many products a visitor orders... no matter how many times they come back, it gets tracked. This is not possible in any other method of tracking… which makes it a very powerful way to track visitors and orders. If a visitor visits the site today, but does not order… but then returns a few weeks later (or years for that matter) the software still tracks the "cookie" in the person's browser and the associate who initially sent him to the site gets credit for the order. If the person orders more than one product over a few days or a few weeks period, using the cookie method, it is super easy for the software to track all of this... and the associate gets credit for all sales generated, in a timely manner, whether he orders today, tomorrow, next week, or next year.

 

As of this printing, places like Amazon.com don't do that. If you are an associate of Amazon.com and have their icon on your site... if someone clicks through and buys right away you get credit. However if they leave Amazon.com and come back three seconds later by typing in amazon.com and not linking through the special URL they linked from in the first place to visit Amazon.com, and then place an order, you as an associate will not get credit for the sale. Amazon.com takes credit for the whole thing. That's the problem with those types of Associate programs. In other words, the only way to get credit for that was to type in the long URL like http://www.amazon.com/exec/obidos/ISBN=1571200207/planetpatchworkA/

 

Now, who is going to type in that?

But with cookies, if you first link through to a site and the cookie gets set, you can just type in the main URL and the cookie is still there… and the associate gets credit for the sale without the visitor ever knowing. Let's use my Internet Marketing Center as an example. If an associate has a banner or text link to the site and we assign him http://www.marketingtips.com/t.cgi/44233 and someone goes there, a cookie of 44233 is set in the visitor's browser and they get redirected to http://www.marketingtips.com so nothing looks out of the ordinary. If the visitor does not buy, but later (days, weeks, or even years later) types in http://www.marketingtips.com, that "44233" cookie is still in the customer's browser and associate number 44233 will get credit for the sale even though they just went back to the main domain name, not the URL with the "…t.cgi/44233/" in it. Cookies are the only tracking method that can do this efficiently and easily.

 

You actually want to use cookies because the main benefit to your associate is that he will get credit for the sale six months from now, a year from now... whenever the potential customer visits the site again. And even if a visitor doesn't buy the first time, if you offer good information they will come back... and buy!

 

You can set the cookie to expire after a certain period of time, after 2 weeks, after 2 months, after 2 years... the cookie becomes obsolete. After a certain period of time the associate doesn't get credit for that sale anymore. The time period in which the cookie is active is really your choice, and depends on how much you want to reward your associate for referring their customer to you. Personally I set our cookies at 3 years… so if the customer comes back and buys within three years, the associate who originally sent them gets credit for the sale.

 

Okay... so now you have a visitor at your site, and they want to buy... let's go into more detail on how cookies work.

 

Now if she click through to the online order form, the associate software program calls the cookie back from the visitor's browser and the associate number is placed in a hidden field in the order form... so that you can track the sale. When the sale actually goes through, the associate's sale counter is increased by one so that the associate can see in real time exactly when she has a sale (assuming you have good associate software, which displays these stats for the associates).

 

I won't get into the gory details, but "good" software, like that which we use at our marketingtips.com site, will track the number of visitors and the amount of sales coming in through each individual associate (so you can see which associates are sending you the majority of your visitors and making the majority of the sales. This allows you and your associates to check and see if they are converting enough visitors into sales. If you notice that they aren't, they can change their banners, text link, etc. to be more effective.

 

Okay, what about offline orders (800#, mail, fax)… how do you track those?

 

Off-line orders do happen, as some people don't trust the online ordering process even if secure servers are used. So you will get orders via fax, mail and through your 1-800 number... and you want to give your associates credit for these orders too! Not that many associate programs DO… so features like these will separate you from the competitors.

 

This can be a very important factor to get associates to join your associate program as they have to feel confident that they are getting credit for ALL sales generated (not just online sales). So make sure you know how to do this.

 

Okay… we've talked about how powerful and useful cookies are... but there is a downside.

Some people turn off cookies on their browser, or they may have older browsers which don't accept cookies. Additionally we have encountered some cookie bugs with older versions of Netscape... and we don't want to place cookies on those browsers.

About 20% of the people online either don't have a browser which accepts cookies, have cookies acceptance "turned off" on their browser, or have an older version of Netscape with cookie "bugs" in it.

 

So when these 20% come to the site... if the software you are using only operates on cookies (which many do) your associates would lose these sales because their visitors can't be tracked. This is not good and will not only make associates lose faith in you, but it can create a lot of "explaining" to associates if they don't get credit for sales. This may even stop many people from signing up if they know how you are tracking and have experienced difficulties with similar software.

 

But the good news is I have a solution to the problem (we will get to that a few minutes!).

 

CGI Tracking

 

Tracking programs that utilize CGI scripting actually put the associate's code right in the URL as he is surfing through the site.

Note: I categorize this type of tracking as "CGI Tracking", but it can be done through JAVA script or another programming language. It has virtually the same functionality as I am describing here, but I use "CGI" as an example as it is by far the most commonly used.

Basically the URL is hard coded into the appropriate pages so that the associate can still get credit for the sale.

 

The code is visible to the visitor because it becomes part of the URL. For example, if the visitor bookmarks the site... they wouldn't just bookmark the URL www.yourdomain.com, but they would bookmark something like www.yourdomain.com/index.cgi?54321 or www.yourdomain.com/tracking/reseller.cgi/home/54321.html, the possibilities are endless as to what the URL could look like… depending on how they set up their scripts.

 

The point is the URL is VERY long and it has the associate's ID in it.

The associate code is not hidden, it's still in the URL and it still puts the code on the appropriate pages so that the associate gets credit for the sales.

 

However, if someone leaves that page and remembers the main domain name (i.e. www.yourdomain.com) and they type that in later to revisit the site, the associate will not get credit as there is no way to track the visitor or sale if he does not re-type in the full long URL (which is almost impossible most of the time).

 

This is the down side to CGI scripts.

 

You will also find some people will notice the long URL with a lot of "codes" in it and erase the extra codes in the URL and just go back to the root domain (www.yourdomain.com) to see if something is different there. If they do this, the tracking is lost and the associate will not get credit for the sale.

Many associate software programs use this method, so be careful which associate program software you choose.

 

It is a "messy" way to do associate tracking. It is clear that you are tracking something and many people are curious as to why the URL on the webpage is so long and full of funny numbers/names.

 

A Solution - The best of both worlds!

 

From the article above you can see why each system has faults by themselves.

However the power is in using them TOGETHER!

I highly recommend using a combination of both cookies... and CGI scripting for backup.

 

Let's use the associate software we use for Internet Marketing Center and our Internet Marketing Course.

Why do we want to use a combination of both methods of tracking?

We want our associates to get credit for every single sale they are entitled to. We want our associates to have confidence in knowing we track everything, no matter what happens.

 

So what do we do?

 

We use the power of "cookie tracking" and have a backup CGI system, just in case a visitor's cookies are turned off, they are using an old browser which doesn't accept cookies, or they are using a version of Netscape which has a "cookie bug" in it (this is a little secret we learned from experience and hard knocks).

 

If we cannot put a cookie on their browser for some reason (remember, I said that about 20% of all people online cannot accept cookies in their browser), our software automatically backs up to CGI and puts the code right in the URL through CGI scripting. So it still tracks the visitor and sale. In other words, we track all the visitors and sales to the best of what technology will provide us to make sure every associate gets credit for the sales to which they are due.

 

Probably the most common method of tracking out there on the Internet is through cookies. But by using this system in many Associate Program sites, the 20% of visitors who cannot accept cookies get defaulted to the program owner's associate number and the associate who actually sent the visitors doesn't get credit for their sales.

 

This is a poor way of running Associate Programs because you have no idea how much the owner of the Associate Program is essentially skimming off the top.

That's why we use backup systems like CGI to make sure that our associates get credit no matter what. Every single person who comes into our site is tracked and our associates have a great belief and trust in us because we take so much effort to make sure that no sale goes into "limbo"… all associates get referral fees for every customer they send us.

 

This is one of the reasons we are so successful... we go out of our way to make sure our associates get credit for ALL of their sales. To be successful with your own associate program, you too must be super-reliable. If you don't come across that way you will not get the associates joining with you and you will not be looked upon as a quality Associate Program. We have been consistently rated as one of the top Associate Programs on the net so we know what we are talking about!

 

So why is all of this "software talk" so incredibly important?

 

The software your Associate Program owner uses is important because you want to receive credit and commissions for every sale you send their way!

 

If your Associate Program is utilizing mirror pages or sites... they are using very old-fashioned technology! Your associates are totally reliant on your ability to keep good records and to be totally honest in calculating their commissions. They can't get real time statistics... and have no way of knowing what works or what doesn't work unless you tell them (they can't track it themselves).

 

If your Associate Program utilizes only cookies, your associates are potentially losing 20% of their sales and referral fees (and if they are tracking offline orders… they may be losing more).

 

Would you join an associate program that had these problems?

 

Of course you wouldn't… and you can't expect associates to join yours if you have these problems.

 

You would want to look for associate programs which give you FULL CREDIT for ALL of your sales! And expect your associates to do the same!

 

Additionally having good tracking systems is a fantastic selling point when you are recruiting associates. You can assure them that they will get credit for all sales... and you can provide them with real time tracking so that they can test banners, text links, etc. to find out what works best for their site, in a matter of days!

 

If you are setting up an Associate Program, the software you choose will determine how automated you can get with your program. The more automated the better... instead of focusing on administrative trivia you can focus on helping your associates become wildly successful! Which means that you will be wildly successful!

 

To finish up this article, I would like to go over some important points, which have not been mentioned yet.

 

One is the importance of tracking the number of visitors from each associate, not just sales.

Your software program has to track visitors; as it has to track sales. If it doesn't track visitors neither you nor your associates can tell how many visitors are converting into sales.

It's very good for your associates because they can see how many visitors they brought in and how many sales have come from them. If they are only converting one out of every 700 visitors, they will get a little upset and will call you to go over the details on what they are doing wrong. This is a good thing! It gives you a good advantage because you are also seeing what associates are pulling really well... and you can call them up and find out what they are doing. Then you can help your other associates improve their sites, how they are marketing... and help them improve their conversion ratios to get them more money! And you want to do this because the more money they make, the more products you sell and the more money you make!

 

Another important requirement in setting up an Associate Program is to make sure that your Associate Program software can track through all of your order mechanisms. This means that you can easily track any orders you get by fax, by mail, over your 800#, and all of your online orders, including secure and non-secure orders. This is not a problem with the right software!

 

I just want to make sure that you are aware of how important this is... because some Associate Program software systems cannot handle this! Your associates aren't going to be very happy if you only track online orders but don't give them credit for any phone, fax or snail mail orders... so make sure you are tracking through all of them!

 

From the very beginning you are going to want to set up your Associate Program so that it is as automatic as possible. You don't want to be spending your time and efforts on looking after administrative trivia! Your time should be spent on testing and improving your marketing and on helping your associates become successful... not on filling out manual forms and dealing with manual tracking procedures.

 

It's also very im