3 Commonly Asked Questions About Affiliate Management

People have all kinds of questions about starting their own affiliate program and it’s always a good idea to be prepared. Starting and managing your own affiliate program isn’t something that can be done on the fly. It takes carefully preparation and planning, but the results are well worth it. Here are 3 commonly asked questions:

Question 1: How much commission should I offer in my affiliate program?

How much you offer will depend on the amount you can afford, taking into consideration the lifetime value of a customer, what your competition is doing and how attractive you can make your offer.

As a general statement, information products usually have a higher commission rate – often between 25-50% with the higher end being more common. Consumer products with smaller profit margins can be as low as 5%, but don’t often go above 20%.

But what you charge should be based on your own unique business. Here are some more things to help you come to a decision:

Sometimes it’s okay to pay a bit more for a first-time customer who will buy from you over and over again.

Always see what your competition is offering. You don’t have to get into a commission war, just be sure to make your program very attractive through good conversion rates, unique and useful promotional tools and other attractive features.

Question 2: What kind of affiliate tools should I provide to my affiliates?

The simplest answer is: Give them what they want.

Talk to your affiliates and see what they need to serve their unique audience needs, and where possible, provide it to them.

For hard-hitting promotions, you can craft email copy, conduct live teleseminars with content and sales pitch, special reports, etc.

For the content-starved webmaster (and there are plenty out there), give them things like articles, free eBooks and other informational content.

The important thing is to listen to your affiliates and watch which tools convert best.

Question 3: Q: Can I have an affiliate program with a service-based business?

Sure you can. If you have a profit margin or a lifetime customer value that allows you to pay commissions, certainly.

If you have services available that are at a set price, it’s easy to automate everything and run your program, just like a product-based one.

If you charge by the hour or have to give project estimates, itís a little tougher to automate completely.

Here are a few options:

– Have a script that can track who referred your potential client to you. Ex. Affiliate recommends your service through a tracking link. Potential client clicks the link, checks out your website and fills out a form for more information. Your system tells you who referred the client and if they purchase your services, you can give the affiliate a commission.

– You could do it as a pay-per-lead opportunity where the affiliate is paid a smaller fee for every person that fills out the form for more information. This would be easy to automate in most affiliate systems that can handle pay-per-lead transactions.

– Don’t want to go with a full-blown affiliate program? You can institute a client referral program where you simply allow your clients to recommend your service, in return for credit for services. When a new client comes to you, you ask where they heard about you and you add a credit to your referring client’s account

An affiliate force is an incredibly powerful thing and when you consider you donít have to pay affiliates anything until they produce results for you, itís one of the best deals going in Internet marketing today. Plan your program well and youíll soon have your own active force of affiliates bringing you new customers every day.

3 Affiliate Marketing Tools

The term affiliate marketing is used to describe an advertising agreement between a website owner and a merchant. If you have researched Internet home business opportunities, you know that affiliate marketing is one of the most simple and profitable opportunities on the web. Most affiliate marketing programs cost nothing to join, which means that there is no financial risk involved for you.

For the most part, getting started is easy. There is no previous sales experience required, and as mentioned above, there is no charge to join most of these programs. Most programs provide all of the marketing materials you will ever need, including site graphics and links. You also don’t have to worry about many of the other things that come with an online retail business, such as inventory, order processing, and shipping.

However, these programs, like any work at home business, requires an organized plan of action if you want to succeed. To assist you in developing a plan, Web Business Tools has created a list of affiliate marketing tools that are essential for every work at home business.

Tool Number One
Your Own Website

When it comes to affiliate marketing, your website is not only your most important tool; it is the key to your success. In addition to being user-friendly, your site should also be credible and professional looking. If you are interested in using one of these programs as an Internet home business opportunity, you will want to begin by building a website that will serve your needs. To come up with ideas, search the web and see what others are doing. Assess these other sites to determine what you like and what you don’t like. Make notes as you go and use them to develop an original and unique website that can stand out among the competition.

If you are unable to build your own website, there are many different professional web development companies who can. They may also be able to help you develop optimized content that will be relevant to your Internet home business opportunity. If you are not interested in hiring someone, there are also software programs that can be purchased which will teach you all about website building and website development.

Tool Number Two
Incentives

To be successful in affiliate marketing, you must encourage people to click on links for the products and services that you are promoting. To help build a clientele, create an opt-in email list, newsletter, or e-zine. If you really want to increase the profits of your work at home business, offer incentives, such as free software, services, etc., that will encourage people to subscribe to your publications. As with any Internet home business opportunity, promotion is the difference between success and failure.

Tool Number 3
Links

Affiliate marketing success depends heavily upon the traffic that comes through your website. Your search engine ranking typically determines your traffic level, but another factor is link popularity.

To gain link popularity, you can submit your site’s link to other websites, free newsletters, etc. The more times you submit, the more chances you have to become a popular destination, which in turn, provides you with more chances to make your Internet home business opportunity a success.

Having your own work at home business can be a satisfying experience. If you want to make the dream come true, give affiliate marketing a try. By taking time to learn more about affiliate marketing programs, affiliate marketing tools, and other Internet home business opportunities, you can develop a successful work at home business.

Top 10 Tips For Choosing The Affiliate Program That Is Right For You.

The cherished dream of a lot of people is to own a Home Based Business one day and be their own Boss. Becoming an Affiliate and promoting the product is no doubt one of the easiest and cheapest ways of becoming a Home Based Business Entrepreneur. Choosing an Affiliate Program has never been an easy task for most people. The Internet abounds with all kinds of Scams and the hype is so powerful and tempting that the gullible often fall prey for it.

The question is how do you identify the genuine Program and which one should you choose? Here are top ten tips you may want to look over before choosing an affiliate program that is best for you.

1. You have to identify a product or service for which there is a need. The product should be such that you would love and enjoy promoting it. You could start by searching for Affiliate Programs in the Search Engines.

2. The product or service should be relevant to your website. It will be unwise promoting a product that has no relevancy. Your website visitors will click off the moment they enter your site since they have no interest at all in these products.

3. It is always wise to join an affiliate program that is long standing, safe and secure and has a good reputation in the Internet world. This can be easily verified from the Better Business Bureau or other similar organizations. Visits to Forums and Discussion Groups will also provide you with a lot of useful information.

4. Most affiliate program providers provide a commission of 5% to 50%. The commission you earn for the sale of a product is your main income. So while choosing an affiliate program you should study the commission paid out and decide on a program that pays at least 35% for you to run your business successfully.

5. There should be a proper tracking system in place to record all the clicks and sales made through the text links and banners placed on your website, e-mails and other advertisements.

6. One important factor that is often overlooked is the hits per sale ratio. This indicates the number of hits that have to be made to a Text Link or Banner to generate a sale. This will give you an idea as to how much traffic is needed before a sale is made. You should be satisfied if the product converts at 2% or more.

7. How often are commissions paid? This is another important matter that should be considered. Most reputed organizations pay their affiliates monthly or when they accumulate a minimum commission of $50 to $ 100 or as indicated by you. You should avoid any program that requires too many sales to reach the minimum amount.

8. Affiliate Programs are generally single tier or two tier. A single tier program pays you for whatever business you have generated. On the other hand a two tier program pays you for the business you have generated and also a commission for the sales generated by a sub- affiliate, you have sponsored. A two tier program is always advantageous.

9. Long standing reputed organizations provide a whole range of tools and resources such as Banners, Text Links, Brochures, Websites and training for their affiliates. When choosing look out for such organizations because they certainly make life much easier and helps you grow your home based business.

10. Finally, you must read and understand the agreement before you join as an affiliate even if it happens to be the best organization in the world.

Choosing an Affiliate Program that is right for you might be time consuming but a worth while process. Going through the above process will also be a learning curve for new entrepreneurs who are serious about starting a successful Home Based Business.