Affiliate Marketing is having Affiliates do your Marketing for you. What I mean by Affiliate is someone who tells people about your product/service and you pay them for a desired response, such as a purchase.
Affiliate Marketing is one of the best ways to get the word out about your product/service.
The best way to pay Affiliates is pay per sale. This means that you only have to pay your Affiliates when they actually make a sale. This reduces your advertising costs dramatically. your Affiliates take on all the risks so you don't have to worry about wasting your money on advertising which may not produce any results.
Using Affiliate is a very cheap way to advertise, however it is very effective. The software required to start up your own Affiliate program can cost only about $50 per month.
Then after that just wait for people to start promoting your product/service for you.
Please remember that 5% of your Affiliates will do 95% of the selling. What I mean by this is that most of your Affiliates will just sit there and do nothing. This can be countered if you teach them what to do, exactly how to do it and providing everything for them so they have to do as little work as possible.
To find out about teaching your Affiliates please see the "How To Super Charge Your Affiliates" article
You don't have to use this form of advertising just to sell your product or service. You can also use it to grow your opt-in mailing list. This is discussed in another article.
How Much Should You Pay Your Affiliates
How much you pay your Affiliates really depends on how much your product/service costs, its profit margin, how much you're willing to give up and what action you want to take place.
Lets say that your product is priced at $100. Lets also assume that it cost you $10 to make it. This leaves you with $90 profit.
How much of this do you want to give away to the person that made this sale possible?
Personally, I believe that you should give a rather high percentage of the profits back to the affiliate (Depending on how many sales they regularly generate), because without them, you wouldn't have made that particular sale at all, so reward them for it.
A fairly decent reward is about 50% of the revenue generated. Your product is priced at $100 so a $50 commission is quite generous. It really depends on your other costs (such as a mortgage) you have, which would help decide on a fair commission to both you and the Affiliate.
Another factor which plays a part is how much additional advertising you do, such as pay per click. For example, if you rely solely on your Affiliates to Market for you, then you may want to reduce the commission you pay to them to help you survive. However, you may want to pay them more, to encourage them to send more sales you way. It really is a judgment call.
On the other hand, if you advertise in other ways effectively, then you can afford to pay higher commissions, because you're not putting all your eggs in one basket.
In the end it's all down to how greedy or generous you are. The best advice I can give you is to pay the affiliate what you think he/she deserves. Hopefully that way everyone is happy and earning their fair share.
That is the key to a successful affiliate program.
By Stephen Warren, the creator of http://www.marketershandbook.com, the completely FREE guide to marketing online, with useful articles and links.
VISUALIZE, STRATEGIZE, ENERGIZE, REALIZE reprogramming is the subject today.Every single... Read More
An affiliate is simply an individual or business who signs... Read More
If affiliate marketing is so lucrative, then why do so... Read More
I often wonder what I was thinking by joining an... Read More
It seems that everybody is into making money online these... Read More
Starting a home-based business on the Internet is easy you... Read More
I have two questions to ask you. One. How much... Read More
If you truly want to generate sales, one great way... Read More
1. View your affiliate program as a partnership between you... Read More
Newsletter advertising has been getting a bad rap lately. Around... Read More
It may sound cliché but it is worth repeating. Affiliate... Read More
Getting your website up, is really just the first phase... Read More
In my search for a presence on the internet, I... Read More
Many seasoned professional speakers agree that you can make more... Read More
Affiliate marketing is one tough business. Everyone online... Read More
If you are an affiliate marketer, then you are in... Read More
We already know about wal mart because of their ads... Read More
Journalist Henk van Ess has caused a flurry of excitement... Read More
I've got a confession to make... what I am about... Read More
Never before has it been easier to find an affiliate... Read More
Many people with the best intentions fail at affiliate marketing... Read More
It has been said that only 2% of affiliate marketers... Read More
Do you participate in chat rooms and message boards related... Read More
Once you truly understand the power of backend profits, you'll... Read More
If you have been a home based business entrepreneur for... Read More
Affiliate Marketing is a large business piece on the Internet.... Read More
There are literally thousands of affiliate programs on the Net.... Read More
You may have heard of joint venture marketing, It's used... Read More
This is how most entrepreneurs become filthy stinking rich! EVEN... Read More
If you have been looking around the internet for a... Read More
Have you ever tried to make money through affiliate programs... Read More
You don't need to buy any "amazing new ebook" or... Read More
Are you looking for a profitable Affiliate Program?When you start... Read More
1. Start your own affiliate program directory. Join a large... Read More
There are many people who log onto the internet everyday... Read More
There are thousands of affiliate programs offering wide range of... Read More
Ok, so after reading many articles on internet marketing I... Read More
Navigating the intricate often tangled network of the worldwide web... Read More
Starting up your internet business as a member of an... Read More
It surprises me that many people fail to grasp this... Read More
So we're looking at E-zine advertising. Just a quick overview... Read More
Throughout the coming weeks, I am going to thoroughly cover... Read More
It has been said that only 2% of affiliate marketers... Read More
Affiliate Marketing (AM) is fast becoming a major trend in... Read More
Substantial opportunities for increased sales and profits are missed by... Read More
Requesting information on an affiliate program is an open invitation... Read More
If you run an Internet marketing web site and sell... Read More
As any business owner knows advertising can be a very... Read More
If you have wanted to find a way to make... Read More
Affiliate Marketing is a brilliant way to begin earning on... Read More
There are literally thousands of affiliate programs on the Net.... Read More
Regarded as one of the choice Internet marketing systems offered... Read More
Affiliates programs are one of the easiest ways to make... Read More
If you ask me, residual (also known as passive income)... Read More
If you have been a home based business entrepreneur for... Read More
Internet Marketing can be an enjoyable and profitable experience, but... Read More
One of the biggest fears new Affiliate managers have is... Read More
Colin McDougall tinkered around with affiliate programs earning a few... Read More
Affiliate programs (also called Referral Programs or Partnership Programs) are... Read More
Affiliate marketing has been around on the Web for quite... Read More
I have seen it a million times, especially from newer... Read More
QUESTION: I am considering starting an ebusiness using affiliate programs,... Read More
"How To Create A Lifetime Income With Affiliate Programs... Read More
'Self-replication' sounds like science fiction but it's not. It has... Read More
There are thousands of affiliate business programs on the internet... Read More
The value of an affiliate is nil in a customer's... Read More
Affiliate Revenue |