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As you
already know,
setting up a CPS affilate program is a very effective way to drammatically
increase your online sales. However you must understand the philosophy
of affiliate marketing to fully profit from it.
Two are the parts
involved in CPS affiliate
marketing: the merchant (also called advertiser) and the reseller
(publisher or affiliate or associate). Affiliate marketing presents
terrific benefits for both: the famous 'win-win situation'.
Main Benefit for the Merchant
The merchant can build a
large network of resellers (the affiliates) for free. That is, he will pay
commissions to them only in the event of a successful sale. No wages, no
costs, and mainly... no limits to the number of resellers!
Main Benefit for the Affiliate
The affiliate has the
chance to make a profit helping the merchant to sell items online with no
need of keeping a stock, and with the flexibility to promote products and
services of virtually any category.
In order for this
'win-win situation' to take place, both merchants and affiliates need to
achieve one single goal: make money. This might sound too obvious, but
unfortunately many - on both sides - seem not to understand this elementary
concept.
It should be clear that
if a merchant that doesn't raise his profit through an affiliate program,
will have to find a different way to promote his business. On the other
end, when an affiliate promotes one merchant's product or service and realizes
that the revenue is poor, he will simply try to promote a different
merchant's product or service.
The logical conclusion
is: merchants have to do their best to keep affiliates and to keep
them active. And both merchants and affiliates have to understand that
"cheating" on each other is simply against their own interests.
Now let's focus on what
you as a merchant need to do in order to attract affiliates, then keep them
active and productive.
Let me sound obvious
again: you need to keep your affiliates happy – if you want to keep them
active. What do affiliates need to be happy? Well, they need (in order of
importance):
1. To earn money. As much
as possible.
2. To see the money.
Often and punctually.
3. To be able to see as many
stats as possible. And as exact as possible.
4. Support.
5. Clear relashionship.
Let's evaluate each
point.
1. Affiliates want to earn money...
...and merchants too! Isn't that the reason why we all work? In
fact if your affiliates earn money, you make profit too. If they are happy,
they are more entusiastic about promoting your product/service.
That's why it is important for your website to be
designed in a way that converts visitors into buyers. It is not your
affiliates duty to make the sale. Their duty is to direct visitors to the
your website, then it's your ability that will have to convert the visits
into sales.
You can help in the
pre-sale providing your affiliates with attractive banners of different
sizes, with a large variety of text links, and - when applicable - with
product links.
In addition you need to
offer your costumers good products and/or good deals, and good service.
Just like in the "Real World". Have I been obvious again?
Another too often
overseen point is that merchants need to reward their affiliate for ALL
sales. Including for sales made offline (phone, e-mail, snail mail and fax
orders). Many affiliates refuse to promote products when they see that
offline orders are accepted. On the other end to ask a merchant not to take
offline orders, especially phone orders, means asking to make less sales.
Many would say that it isn't always easy to track affiliate-generated
offline sales. The good news is that the technology to do this is
available. In fact many affiliate programs already track offline orders. If
many do, all can do.
Other sales you don't
have to forget to reward your affiliates for:
- In case of partial
returns, the items that haven't been returned.
- Sales resulting from
positive evaluation of trial offers and similars.
- Sales to returning
costumers. Affiliates need to receive credit for a costumer they brought to
you, as long as they stay affiliated with you.
- Sales to returning
visitors. Set the return days (cookie duration) as high as possible.
Is this clear enough? Let me repeat the concept again: you
need your affiliates to earn as much money as possible! This way
they'll be happy, thus motivated.
2. Affiliates want to see the money.
That is: often -
possibily on a monthly basis - and on time. Many will wait to feel the
first check between their fingers before they give a merchant the priority,
thus better exposure.
3. Statistics.
Stats have to be accurate
and possibily very detailed. This way affiliates will have the power to see
which banners, text links, and/or campains work best, on which page and
position.
4. Support.
Good affiliate support means first of all to answer to
email inquires as soon and as clearly as possible, but also means to have
an often updated FAQ page where most answers are already given (also to
avoid to receive thousands of emails asking the same questions).
In-house discussion
forums also help, but only if moderated on a regular basis.
Support also means to
visit the affiliate's website to suggest better ways to pre-sell the
products/services; politely contact inactive affiliates to invite them to
turn active; periodical polls or surveys to better understand their needs
and feelings.
5. Clear relashionship.
Before affiliates join a
program they need to read and accept a clear and well-detailed Agreement.
Affiliate Agreement have
to include the amount of the affiliate's commissions and the terms of
payment.
Any change to the
Affiliate Agreement will have to be notifyed by email.
As you can see, nothing
of the above is any weird or revolutionary theory. Be fair to your
affiliates and help them to send visitors to your site, and everybody wins…
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