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When you start an affiliate program
you have the choice of handling the operations yourself
or having it managed by an affiliate network. The costs
for either choice are reasonable and generally start
around a few hundred dollars. Additionally, as a
business owner don’t forget that many of your costs may
be tax deductible. To start an affiliate marketing
program in house, costs will include:
Affiliate management software
Affiliate marketing support including a website that
answers affiliate questions and a means for them to
contact you if any issues arise.
Affiliate marketing materials including banner ads,
copy, coupons, and promotional content.
An affiliate marketing contract agreement
Tracking software to track cookies, click throughs,
payments, etc…
If you choose to hire an affiliate network to handle
your program they generally charge a flat fee or a
percentage of what you pay out each month.
3. How much time will it take out of my workday/workweek?
Most experts agree that it will take you about an hour
and a half each day to manage your affiliate program.
They also recommend you to budget more time in the first
few months of your program, approximately two to three
hours a day. Even the most efficient affiliate managers
spend about 45 minutes a day managing their affiliate
program.
Professional affiliate managers generally spend an
average of 40-80 hours a month dedicated to managing,
tracking and promoting your affiliate program.
4. Should I use an affiliate network?
Do you have an extra 3 hours a day for the next two or
three months? Do you have an hour a day to devote to
managing your program after the initial three month
program is complete? An affiliate network, while it may
be a bit more expensive on the outset, can help you
focus your time on other profit generating tasks.
Additionally, an affiliate network can help expose your
affiliate program to a wide variety of experience
affiliates, which means more money in your bottom line
and more exposure overall.
That being said, there are a tremendous number of
effective in-house solutions including some you’re
likely already familiar with like 1shoppingcart.com and
affiliatepro.com. These programs will help you stay 100%
in control of your affiliate program and are effective
at managing your program.
5. How should I pay affiliates? What type of commission
works best?
This is a very important decision because it not only
affects your profits, the right commission rate will
help you recruit top-notch affiliates. The general rule
of thumb is to set your default commission rate at a
rate you can afford to pay while leaving room for time
limited commission increase offers, promotions, and
private offers. For example, if you can afford to pay
50% of your gross profit margin, pay 25% instead and
tier it so that after a sales goal is reached they earn
30% or you can bump it up to 50% during the holidays or
during typically low sales times.
6. How do I recruit affiliates?
Your customers may be your best affiliates. After all,
they already appreciate and enjoy your products or
services. A simple link on your website is a good place
to start. Here are a few ways to find quality affiliates:
Online forums. These are excellent places to meet and
greet and connect with like minded individuals. They’re
also a good resource for affiliates who are interested
in, motivated, and qualified to sell your products and
services. Using a forum, you can announce your affiliate
program. Be careful to not ‘sell’ on the forum as most
forums look down on this and may kick you off.
Additionally, you can include a link to your affiliate
site in your signature.
Find websites that link to your competitors and approach
them about being an affiliate for you. Likewise, you can
find affiliates using your favorite search engine and
contact them about joining your program.
One last way is to join an affiliate network or become
listed on an affiliate directory. This will ensure that
affiliate marketers who are searching for new products
and services to promote. However, keep in mind that many
beginner marketers also seek products and services to
promote via affiliate directories and they may lose
interest and motivation before they ever make a sale.
This isn’t a strong deterrent because they don’t get
paid unless they make a sale, however it should be noted.
7. What is the best way to communicate with my
affiliates?
Email is the general tool of choice, which makes an auto
responder a fantastic tool for basic emails like the
welcome email, introducing promotions, coupons, sending
links and banner ads, and answering Frequently Asked
Questions. It is also generally advisable to have an
email address, fax number, and telephone number
available for when affiliates have questions that are
not answered by your frequently asked questions web page
or when they simply want to speak with you.
8. How do I motivate affiliates?
Money motivates no doubt about it. That being said,
affiliates are also motivated by feeling that they’re
important to you. This means when they ask for your
time, you give it. Additionally, promotions, bonuses,
prizes, contests, and commission increases are all tools
to motivate and inspire affiliates. Constant
communication, like sending a weekly or monthly Ezine,
will also help remind your affiliates that you’re out
there and invested in their success.
9. Do I need to hire an affiliate manager?
The answer to this question really depends on your needs.
How large is your company? Do you have the time to
manage your program? Do you have the skills to manage
your program? An affiliate manager is the person that:
Recruits affiliates
Communicates with affiliates
Develops, tracks, and reports on promotions
Develops programs to enhance affiliate program
Motivates affiliates
Tracks sales and pays affiliates
Monitors your competition
These are all extremely important functions and if you
have the time to handle them yourself, excellent! If you
do not, then consider hiring an affiliate manager.
10. How do I find/hire an affiliate manager?
Outsourcing an affiliate manager is fairly easy to do.
There are hundreds available with a quick online search.
You can ask associates, inquire at online forums, or
post an advertisement seeking someone to fill the
position. Depending on the complexity of your affiliate
program, you could consider a well qualified virtual
assistant for the job. The skills your affiliate manager
will need are:
Organizational skills
Communication skills
Attention to detail
Knowledge of online business, internet marketing, and
basic ecommerce operations
Basic html and graphic experience are a plus
Because they’re going to be representing you, you’ll
want to make sure they’re personable.
Article Source: http://www.articlesbase.com/affiliate-programs-articles/10-affiliate-marketing-management-tips-259078.html
About the Author:
Jeremy Gislason is a leading expert on membership sites,
marketing and online business. For more Business
Strategies, Resources and Affiliate Manager Software
visit MemberSpeed.com |