SpeedieConsulting

If you are thinking about running an affiliate programme as part of your online marketing strategy, there are a few things you need to think about before you start.

Commissions
What are you going to pay and for what? There are 3 main commission structures

• CPA – Cost per Acquisition
• CPL – Cost per Lead
• CPC – Cost per Click

Each one has a varying degree of risk to your business but you need to think about what works for you. For example, you maybe want to run a CPA deal but your online system can’t transact online so you may need to look at a CPL deal.

How much are you going to pay?

You really need to think about this one carefully. Once you have set a price make sure you leave enough room to move it upwards if you need to. Affiliates like price increases but they will hate price reductions so take the time to crunch the numbers to make sure the price you are offering is sustainable.

In-house programme or Network?
Are you going to run the affiliate programme yourself or are you going to join an affiliate network? There are advantages and disadvantages of both, so think carefully. Of course, there is nothing stopping you running both an in-house programme and a network based programme.

But we would suggest starting with one first. Here are some pros and cons.

These are just a few things you will need to think about before embarking on an affiliate programme. While it may appear daunting, an affiliate programme can be used by any size business and can add a great deal to your marketing efforts. Setup in the right way can also remove any risk as you only pay for completed business.