Speedie Consulting :: Affiliate Programs

Affiliate Programs

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What is an Affiliate Program?

According to WikiPedia , Affiliate Marketing is a widespread method of promoting a website, in which an affiliate is rewarded for every visitor, subscriber and/or customer provided through his efforts. It is a modern variation of the practice of paying finder's-fees to individuals who introduce new clients to a business. Compensation may be made based on a certain value for each visit (Pay-per-click), registrant (Pay-per-lead), or a commission for each customer or sale (Pay-per-Sale).

In essence, it is a tool to manage a remote commission based sales force that is recruited online.

Why should I use an Affiliate Program?

There are many reasons why a company chooses to run affiliate marketing campaigns. Here are a few of my favourites

It is a Low Cost Option
Affiliate Marketing is relatively low cost to start if you already have e-commerce store. Some Shopping Carts will already have affiliate programs built in or as upgrades. This software will then manage all sales tracking, affiliate signups and much, much more….

Low Risk Option
Depending on what your commission payment model is, Affiliate Marketing removes the risk in paid offline advertising as you are only paying the affiliate when the sales has been made.

Acquire a Large Multi-Skilled Sales Force
If you join a large affiliate network to use as your affiliate management program, you will have access to a ready made Army of Affiliates. Some of these networks have over 100,000 affiliates. Imagine these all working to promote your products. I have mentioned that these people are also skilled. Affiliate marketers are some of the smartest people around and know all the best ways to promote a product online. They will also have diverse skills, some will have huge Lists to mail offers too, others will be Pay Per Click (PPC) experts, others still SEO experts. An affiliate program allows you to tap into that market.

Free Branding Exercise
Having your banners, text links, product logos etc all over these affiliate sites, you are getting your business some great free exposure and this should not be overlooked. While you should benefit from this do not exploit your affiliates. Do not add direct urls or phone numbers to your banners. This will cause lots of affiliates to leave your program and also give you a bad name in the industry.

Can develop your Product and Services into International Sales
Your affiliate program can truly turn your local business into an international sales machine very quickly. Larger affiliate networks have affiliates around the world and not just English speaking parts. An affiliate program will also be able to soft launch your product into Asia, or into Europe.

Affiliate Program Setup Options

Once you have made the first decision to run an Affiliate Marketing Campaign you need to decide whether to run it in-house or outsource it. There are several benefits for doing both.

In-House Affiliate Program Management

Advantages

Tight control over approval of affiliates
Tight control over Brand
Control your affiliate base
No cost for running affiliate program (No Overrides to Network Partners)
Can create Second tier program

Disadvantages

Time consuming
Need to spend time recruiting affiliates
Slower start to build Sales
Skills needed in house
Payments need to be managed in house

Outsourced Affiliate Program Management

Advantages

Large Affiliate Sales force already built. Your product is advertised to them and they can join your program.
Using a ready made network service adds credibility.
All tracking and software is provided by third party.
It is quick to implement a program.
No skills needed in house.
Single Payment to Network provider then they pay affiliates

Disadvantages

Costs more (Sign up fees, monthly network fees and Override fees in some cases)
No direct control over affiliates
No direct contact with affiliates (Normally done via Network and in some cases with Costs)
If Network shuts down you have lost your affiliate network

Affiliate Marketing Resources

Affiliate Software

AssocTrac
My Affiliate Program

Affiliate Networks

Commission Junction
Tradedoubler
Buy.at
UK Affiliates (DGM)
AffiliateFuture
AffiliateWindow
Linkshare

Affiliate Management Consultancy

We offer a full consultancy service for Affiliate Programs. We will examine your business and offer a suggested solution that best suits your needs. We will also provide you with all the details on:

What solution to use
In House or Outsourced
How and where to promote your program
How to structure the remuneration package
What creative to offer Affiliates
Landing Page Suggestions
Ongoing Affiliate motivations and Competition Ideas to drive even more sales

Our Consultancy Service Report for Affiliate Programs costs £250 plus VAT for a full written report. For more details please complete our online Affiliate Marketing Enquiry Form