Affiliate Marketing: How to Create a Working Affiliate Partner Program
If you’ve ever had an inkling to start an affiliate program, you’ll certainly be following a well-worn path. This tried-and-tested business model has been in widespread operation for some years now. It benefits the retail organizations who offer their products to third parties for advertising via their own web platforms in return for commission on every sale. It also benefits the marketers who have signed up to these programs and are now making a killing assuming the role of product promoter via their websites, blogs and social media channels. So much for affiliate marketing, but what about instigating a working partner program to make the sales channels even more effective? Here’s what you have to do to create such a program.
Firstly, how effective are Affiliate Partner Program?
Although the exact figures are not 100% quantifiable, statistical feedback from the larger affiliate networks (such as Amazon) has revealed upwards of 10% of their total sales were down to collaboration with effective partner programs. As a slice of a pie worth over $100 billion, that’s a considerable sum of revenue. It certainly generates a lot more income than tapping into social media or hosting online adverts.
One of the most important elements which need to be considered in setting up a partner program is how the different partners are going to be paid. There are various options, including the standard affiliate marketing solution of paying a commission on every sale, as well as offering an agreed amount for every lead generated (a lead is a potential customer.) The former of these two options is by far the most consistent throughout the world of affiliate marketing. Its flexibility means the retail organization can keep a finger on the pulse, ultimately raising or lowering the commission rates depending on how successful the retailer is performing at shifting their products or services.
With the latter option, you need to assess the volume of leads which are being generated by your various affiliates. It can be more problematic going down this route as the feedback involved in determining these numbers is not always as cast iron as studying sales returns. You are relying on an analysis of web traffic to give an indication of your rate of site visitors, and it goes without saying it’s much more difficult to track down these exact numbers compared to sales amounts.
If you happen to sell services or products which the partners can claim themselves, you could always offer a discount on using these as opposed to the commission payments.
Prior to going into partnership, it is important to pay close attention to the activity of your competitors. You can analyze the affiliate programs which they are currently operating, and if these are proving to be successful you can be compelled to increase your own activity accordingly. By doing further market research you can seek to determine if your competitors have become involved in partner programs. This form of in-depth analysis can be achieved by referencing the relevant trade articles relating to the topic in question.
As well as steering you in a certain direction relating to the types of affiliate programs you could be championing, this method of investigation can also throw up pointers towards achieving a more streamlined business model. Keep an eye out for online feedback affiliates have published about their experiences in promoting the products under consideration. You can glean a lot of interesting information about the fluctuations in markets, and if you do take on partner programs, this data can prove to be invaluable in determining your business strategy moving forward.