Read Cody Moya’s article titled “Setting Up a Successful Affiliate Program”.


Cody Moya’s article is reprinted here.

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Setting Up a Successful Affiliate Program

So many web site owners these days are setting up affiliate programs as a way to make extra cash that the market is quickly becoming very crowded. When setting up an affiliate program on your own web site, it is important to realize that not all affiliate programs are the same. Some affiliate programs are great sources of extra income, while others are essentially a waste of time. Learning to tell one from the other is essential to your survival in this competitive environment.

It is easy to see why affiliate programs have become so popular with both professional webmasters and casual internet users. Affiliate programs are very easy to set up. In most cases, all the web site owner has to do is complete a simple form and then paste in a few lines of simple HTML code to the web site.

Of course, the ease with which an affiliate program can be set up also means that everyone and their brother is jumping into the fray, often without full understanding what they are getting into. There are some important factors to heed before joining any affiliate program.

Does it fit my web site?

When it comes to evaluating various affiliate programs, it is important to make sure that the product you are promoting is a good fit for your web site. For instance, are the people who already visit your web site likely to be interested in the product your proposed affiliate has to offer? A close match in subject between web site and affiliate will yield much better results.

The commission (or how much do I get?)

The commission should be reasonable in order to make the time and trouble it takes to set up the program worth your while. The commission is the percentage of the sales price that you get as a finder’s fee. A reasonable commission should be at least 20%, and depending on the merchant it can go as high as 50%.

In addition, some affiliate programs also allow for second tier commissions. Second tier commissions are commissions for sales initiated by those you referred to the affiliate program.

Is the product a good value?

The offer of a fat commission, like 40% or even 50% is great, but if the product is overpriced to make up for that commission, it is unlikely that enough sales will take place to make it worth your while. The goal of your affiliate program should be to find products that are priced fairly and still provide a good commission level.

Is the product top quality?

Again, a poor quality product will not bring you commissions, since it will not sell well. In addition, the refund rate on poor quality products will be high, and that high return rate will really eat into your commissions. It is also important not to associate yourself or your web site with poor quality merchandise.

How long does the referral last?

This element of affiliate programs is often overlooked, especially by those just getting started. When initiating an affiliate relationship, it is important to find out how long the affiliate remembers that you referred that visitor. Some affiliates do not remember you at all. That means that unless the visitor to the merchant web site buys on the first visit, you will lose your commission.

A good affiliate program should remember your referred visitors for a minimum of 60 days. The affiliate’s web site will use a cookie planted on the visitor’s computer to remember where the referral came from. It is important to read the affiliate agreement to determine the length of referral duration.

Am I eligible for recurring commissions?

A good affliliate program should give you commissions for subsequent sales made to those you have referred. Some affiliate programs are set up to pay commissions for only the first purchase, so it is important to read the affiliate agreement carefully.

You should be entitled to a commission for each subsequent sales, as well as a piece of any upgrades or accessories the visitor you referred may buy. These recurring commissions can really add up over time, so don’t ignore this important source of extra income.

Does the affiliate provide statistics and reports?

Most affiliate programs will provide the web site owner will periodic reports of the sales activity they have generated. Some affiliate programs will provide a monthly report, while others will provide a link to real time statistics.

Real time statistics are usually a much more useful and accurate way to gauge the effectiveness of any affiliate program. Real time statistics also provide a way for web site owners to tweak the promotional materials on a daily or weekly basis and instantly see the results of that tweaking.

Are payments made consistently, accurately and on time?

It is important also to make sure that the commission payments are made on a consistent basis, and often enough to make it worth your while. The ideal situation is monthly payments, but some affiliate programs pay only every three to six months.

ABOUT THE AUTHOR:

Cody Moya writes about “Affiliate Program Creation And Management” in his Free Courses on Internet Marketing. You can sign up for his free Courses and get additional information at his website: http://FreeInternetMarketingCourses.com

*IMNewswatch would like to thank Cody Moya for granting permission to reprint this article.