As an affiliate marketer, it's astonishing to see how many online merchants don't have an affiliate program in place to market their goods.
That's just crazy!
Basically, they're LEAVING MONEY ON THE TABLE… and lots of it.
Who knows? Maybe they're afraid of 'sharing' their profits and 'losing out' somehow?
Again, that's Crazy!
Having hundreds and thousands of affiliates promote your products INCREASES net profits - it doesn't cut into existing income.
Here are the 3 BEST reasons to start your own affiliate program:
I know from personal experience that my affiliates are responsible for the lion's share - around 75% - of sales of my Super Affiliate Handbook.
For still better evidence of the effectiveness of affiliate marketing, here is a letter I received from Tim Knox, a client with whom I first spoke in October 2003:
Hi Rosalind,
It's been awhile since we spoke on the phone and I wanted to give you an update on how much my business has grown in a very short time, due in no small part to the advice I received from you about starting my own affiliate program.
If you recall, we initially spoke in October, 2003. I had just purchased your Super Affiliate Handbook and had a thousand questions about affiliate programs. I invested in an hour of telephone consultation with you and it turned out to be the best investment I could have made in my business because that call sparked my desire to build my own affiliate program.
To refresh your memory, I already had a very successful web site called DropshipWholesale.net (http://www.dropshipwholesale.net ) which sells my own copyrighted line of informational products focusing on selling dropship and wholesale merchandise online. My customers consisted of people looking for dropship information and products to sell on eBay and those looking to start their own online sales business.
The primary reason for my call to you was to get your advice on how to better market DropshipWholesale.net and the related line of products.
Your advice on marketing was excellent, but it was your suggestion that I start my own affiliate program that really sparked the fire.
I launched the DropshipWholesale.net Affiliate program a few weeks later and to say the least, the results have been nothing short of phenomenal.
I now have over 500 affiliates around the world who market my products from websites that I provide to them. The affiliates are paid 50% commission on everything sold. I know 50% is a high commission to pay
affiliates, but as you pointed out it is my affiliates who are helping me build the business, so the thousands of dollars I pay out each week to affiliates truly is money well spent.
I am on track to do over $500,000 in revenue this year with over $200,000 paid out to well-deserving affiliates.
My affiliates and I thank you for you contribution to our success.
Sincerely,
Tim Knox, Founder
DropshipWholesale.net
Just last month, Tim wrote to tell me:
"I did $750K last year and am on track to do $1M this year, all online."
WOW! and Woohoo!
Now, if that doesn't convince you that you need to start your own affiliate program - I don't know what will.
Perhaps it's the prospect of going through all the rigamarole of searching for, and finding, the perfect affiliate program solution, stops some merchants from setting up their own programs.
Well, I dislike 'rigamarole' as much as, (probably more than), the next person, so let me allay those fears.
Setting up an affiliate program is just not that big a deal.
All those merchants with affiliate programs now in place can't possibly be Internet Einstein's, so don't expect starting an affiliate program to tax your gray matter any more than anything else you've done in your online business.
OK, I hear ya, but there's always out-sourcing. And remember, the more you outsource, the more time you have for playing golf or with your kids.
There are basically only 4 different types of affiliate management software solutions. They are:
If you sell a digital product, like an ebook or software, you should definitely consider Clickbank, which acts as a third party payment processor, (say THAT 3 times fast) and has a built-in affiliate program/network.
Clickbank has thousands of affiliates in their network who are always looking for digital products to promote…Nothing but nothing sells like information on the 'net, and Clickbank affiliates know that well!
Clickbank is the company I use to process sales of my Super Affiliate Handbook. Jim Edwards and I also use their services for Affiliate Business Blueprint sales.
Checks arrive like clockwork every two weeks.
It's super cheap to set up with Clickbank too. There's a one-time $50 setup charge, and then a $1.00 fee and 7.5% applied to every order processed. Order fees are split between you and the affiliate who referred the sale.
Sure, Clickbank's affiliate program has its limitations, not least of which is the inability to contact the affiliates who promote your product.
Nevertheless, it is a 'best bet' for getting an affiliate program started quickly, easily and inexpensively.
In many ways, PayDotCom is similar to Clickbank in that it is a third-party payment processor with a built-in affiliate network.
PayDotCom offers a couple of options that Clickbank does not, so you may want to consider joining both.
PayDotCom lets the merchant choose whether or not a customer's purchase should be refunded, whereas Clickbank refunds immediately on customer request provided the request comes within the allowable period.
PayDotCom also uses PayPal and StormPay as payment processors. Clickbank doesn't offer the Stormpay option.
Merchants who sell hard goods and services have many affiliate program management solution options… and I do mean many.
Do you want to have your program introduced to tens of thousands of affiliates… today? Then consider partnering with Commission Junction, the largest affiliate network.
Although CJ is one of the more costly solution - with a one-time fee of $2250 dollars to gain access, and an annual maintenance fee of 250 more dollars - having so many affiliates available to promote your product from the outset, may
offset the initial and ongoing costs of having CJ administer your program.
If you like the idea of having thousands of affiliates on your 'doorstep' by joining an affiliate network, but think CJ's prices are a little steep, you might want to consider:
If you'd want to save money and don't mind finding your own affiliates then a Third-Party affiliate management program solution may be right for you.
They brand themselves as the 'The Original Affiliate Tracking & Management Solution Provider, Since 1997' and claim to 'power over 500,000 affiliates, and 2000 private networks, and continues to hold its place as the #1 private affiliate software and management solution on the market today.'
Indeed, many of the most successful companies with which I do business use the 'My Affiliate Program' to power their affiliate programs.
Although Assoctrac offers a wide array of features, and is reported to have excellent support, as an affiliate, I find the interface just a little on the clunky side. As a merchant however, you'll probably appreciate the very attractive price on this solution.
Last, but certainly not least are affiliate management program solutions which are built right into your shopping cart.
As a merchant just starting out, this may in fact be your best choice, because you won't have to wonder if the software you buy or lease will actually work with your third-party payment processor and shopping cart - it's built right in!
1ShoppingCart is the first choice among merchants who are looking for the 'full-meal deal' or all-in-one solution with all the tools you will ever need to do business online.
The short list of features includes a shopping cart that connects to your merchant account (with support for 60 different payment gateways, including Paypal) and does shipping calculations for your orders. Got a membership site? 1ShoppingCart comes with and Automated recurring billing system, or you can set up recurring billing for individual customers. You can track and split test your ads, and their service also comes with multiple autoresponders and an ebook delivery system.
1ShoppingCart is the system I have chosen to support my next non-digital project.
To save you time, in the previous pages I've discussed only a few of the affiliate program management solutions currently available.
Once you've decided to start your own affiliate program, I recommend that you also pick up a copy of the Super Affiliate Handbook to learn how affiliates think and like to work.
Although it is the industry's standard training manual for new affiliates, it has also become very popular with affiliate managers and owner/merchants who want to make the most out of their affiliate programs.