Getting an Affiliate Program On The Internet
Most businesses thrive on referrals. You’re willingness to share a portion of the profit in exchange for new leads and more sales will improve your business a hundred fold. The first thing to do is to set up your affiliate system. Here are some of the things you need to consider when you’re managing your first affiliate system.
Price of Products
Proper pricing is crucial if you plan on splitting the revenue with affiliates. Strike a balance between reasonable pricing and generous incentives. If you are selling digital (information) products this is likely not an issue. If you are selling physical products you will need to determine how much you can affordably offer in commission without cutting too much into your own profits.
Affiliate Incentives
Of course you want to keep as much of that hard-earned money as you can, but you have to remember the target with an affiliate program. The thing is, these affiliates are not employees. They get paid only after they make a sale. If your incentives are not exciting enough, affiliates will go to your competitors.
Affiliates understand that in order to earn, they must promote quality products well. Affiliates will keep your incentive program in mind whenever they refer people to your website. The most aggressive ones pour thousands into advertising just so they can sell your product. Research the exact amount your competitors are giving your affiliates.
Think about your capital and how long before you can break even, even with an affiliate program in place. The average commission for digital products like ebooks and MP3s is 50-70%. If you’re selling software, you can give 20% commission because you may have to hire someone for updates and maintenance. For products that have to be delivered, 10% is generous.
Cookie Management
If you’re running an affiliate program, you should be familiar with cookies . A cookie tells you whether an affiliate made a sale or not. The best affiliates will get attracted to cookies that don’t expire or those that last for six months or more.
Let’s say the potential customer visited the website through a referral link. A non-buying customer may decide to buy only after 20 days. A cookie with a duration of thirty days makes sure that the original affiliate who referred the customer first will get credited for the sale.
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