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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.

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.

Affiliate Programs an Easier Alternative

Being new to the web and wanting to start your own business, you probably are feeling a little intimidated by the new vocabulary you’ve encountered, not to mention the sheer number of opportunities you’ve got to chose from.
Never Fear! There is an easy Solution.

Starting your business with Affiliate programs might be your best bet. Why? Simplicity.

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Selling a product or service of your own means creating and building a website. Will you hire a web designer or attempt to do it yourself? Learn how to write ad copy or hire a freelance writer to do it for you? Set up a marketing plan, be able to accept payments online and obviously you must create this product or service. If you’re selling a physical product then you’ll either need to make it or buy it.Where will you get it? What will it cost? How will you pay for it? How will you accept payments online? With all these factors to consider, How do you plan on handling the workload?

Getting started in an online business using affiliate programs is a whole lot quicker and easier.You can, In fact, be making money within hours of signing up with your first affiliate program. There are some folks out there earning huge incomes from affiliate programs. Also referred to as “Super Affiliates.” Assuming you are, in fact, New to the Web you’re probably wondering what an Affiliate program is.

Essentially, an Affiliate is a salesman or a subcontractor, if you like. You enter into an agreement with an individual or company, to sell their product or service. They, in turn, provide you with a webpage with it’s own unique we address, which identifies you. The company takes care of tracking your unique address, completes and delivers the product or service to anyone purchasing through your page, and makes sure the sale is credited to you. Your only job is to drive traffic to your affiliate sales page and collect the commissions.

Some companies offer what’s known as a “Two Tier” Program. What this means is, If someone is interested in selling the same product as you. They can sign up as an affiliate from your unique web page and you get a small percentage of everything they sell. Once again, the company tracks it and you get paid.

Picking an affiliate program can be as easy as matching your interests with any one of the thousands of programs available. Whatever that may be, you’ll first need to see if there is a market for it. Go to the Overture keyword tool. located here: http://inventory.overture.com/d/searchinventory/suggestion/ Put the main keyword or phrase into the search box and hit Go. Don’t be fooled into thinking that just because your particular word or phrase has been searched for a Kazillion times that you’ve got a winner. If it has, chances are there are half a Kazillion other people marketing the same thing. You’ll need to make another choice.

Once you’ve found something popular yet not too popular, you can go to your favorite search engine to see what programs are available. When you find a program you feel you’d like to try, don’t forget to read the Terms and Conditions as well as the (FAQ) Frequently Asked Questions. Make sure the payout structure isn’t one that is so high that you’ll never see your money. 50% payout is pretty much the standard. If the cost of the product or service is high enough you can probably settle for less than 50%. Do the math and decide if it will pay you what you can live with.
(Here’s a Tip. It takes as much effort to market a high priced item as it does a low priced item.) If you can comfortably agree with the Terms and Conditions then go ahead and sign up.

Being the smart, savvy person you are it is probably pretty obvious why marketing affiliate programs is great for beginners. All you need to do is Drive Traffic to Your Affiliate Sales Page. Everything else is taken care of by the company!

So, What are You Waiting For? Get Out There and Create the Great Income You’ve Been Dreaming About!