How much do I need to pay my affiliates?
As the affiliates are the ones getting you traffic and in the end also the sales they should be well awarded for this. If not, you risk the chance of losing them to another affiliate program. This is something which really should be avoided at any cost (well, almost any cost). As mentioned in a previous article one should start with doing research and have a look at other affiliate programs. What are they offering and how will your business be more attractive to affiliates?
Depending on what segment your affiliate program is active in your commissions will have to vary. For example are the commissions in the poker segment higher than in the dating affiliate segment and it's important for you to stick to the standards (if not offering something better).
If your calculations show that you can pay your affiliates 15% in commission you should set the base commission lower. The best deals should be saved for your top affiliates. A thing which is extremely important to never do is to lower the commission after a while. If you do this you can kiss your affiliate program goodbye! No one likes to feel cheated!
What will my affiliates look for?
In questionnaires there are always two things that reappear as the most important as an affiliate. These two are the commission rate and the conversion ratio. Affiliates will look for programs displaying the best combinations of these two. If you are outstanding on these you won't have any problems attracting affiliates.
Of course there are more factors which are important for affiliates when they choose affiliate program. Often mentioned factors are average order size, cookie life, reliable payment and recognizability & reputation.
Important to think about!
Before you partner up with affiliates it's of great importance you've got a program of agreement. This agreement should state both responsibilities as well as obligations. If you haven't settled on this before starting to work together it isn't unusual for misunderstandings to occur. Be as clear as possible in your agreement, both sides will appreciate it. We really want to stress the importance of a greatly written program agreement. Without one you will have no security. Don't stress things when you're in this phase. Better to let it take some time than to stand there with your pants down.
Promotional tools
The next thing you should start working with is the promotional tools which your affiliates can take part of. These are a must in order to get the attention you want and the responsibility for this is on you and you alone. Various options are banners, ads, links and coupons. Which is the most successful is hard to say and it may take some time to find this out but in polls banners and links tend to get the highest rank.
What type of deal which converts the best is difficult to say but examples of good converting deals are free shipping deals or percentage off coupons. Think through what you can offer and what you feel would suit your business.
Do I need help?
If you need help depends on the size of your business and how much you feel you can manage yourself. If you as if you need help you could hire an affiliate manager. He or she will be in charge of the management and the affiliate program. Everything from recruiting new affiliates to maintain on-going communication campaigns is their responsibility. Help is not a thing to be afraid to ask for if it's needed.
Take all of these points in consideration and get ahead of your competitors. It's better to be well prepared and let it take some time than to knowing nothing about ones future business. It might seem obvious but even though it is many people come unprepared. We wish you the best of luck with your affiliate business!
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