One of the sites I run sells Web Conferencing and Teleconferencing services. (www.agilelive.com). As we are just getting started, I would like to augment our sales by having an affiliate program. I don't want to pay too much, but I'm also afraid of paying too little as far as commissions go. The sales for any particular customer can vary widely, as it is all based on usage. So for a payment structure, what would you suggest? A) paying a fixed price per customer (and eating the loss on the ones who don't spend enough), or B) paying a monthly commission for a fixed amount of time (say 15% of the profit for 6 months). Or is there a C) possibility that I haven't thought of? And my next question would be: what is the best way to pick up affiliates? Are there recommended web sites to read for developing an all around strategy?
I know someone that gives 4-5% of the sale for their affilliate sales. I'm not sure what the going rate is but I think this is around the percentage which I've heard a few people using.
Hi nevetS, Commissions vary greatly based on markets and margins. Best thing it to research what your competition is offering and then beat it. Affiliate marketing can be a vibrant part of your marketing mix if done properly. How effective it is can be directly as a result of how much effort you put in, but is somewhat dependent on your market, how you set the program up and which network or software you use. I have doen consulting for sites that went from 500,000 a month in affiliate sales to 3.2 million a month within 6 months and many of my clients are generating over 100,000 a month in sales, so this can be a significant way to increase revenue. However, don't go into it thinking you just set up the program and sit back. It isn't as passive a marketing endeavor as PPC is. Far too many business owners have the mentality that if you just start an affiliate program the sales will come effortlessly. Much like in the "old days" when companies thought if you build a site - "they will come." Most companies have no idea what it really takes to run a successful program. Study and do lots of due diligence before you decide to launch a program and it can be one of the best marketing ecisions you have ever made. Hope this helps and best of luck!
I asked around recently and found ShareASale to be highly recommended, perhaps mostly for the low start-up costs. I think it's only $200 to be set up properly. As an affiliate, I think I would be less excited about the fixed dollar amount per lead, I'd rather have a hand in the on-going revenue stream generated by clients referred to you by my site. I would not put a time-limit on that such as 6 mos. It really is important to offer enough motivation for affiliates. Whatever your competitors are offering, it is too little. Offer twice as much. Also, consider advertising or promoting your affiliate program on web sites where webmasters hang out. Eric _____ God fearing text ads - http://www.linkbliss.com