Like
a gorilla on steroids, there is a powerful way to add profits
to your bottom line -- and that's through actively participating
in the "right" affiliate program. By "right"
affiliate program, I mean the one that's right for you.
For our readers
who are unfamiliar with what an affiliate program is, it's simply
a "no-risk" partnership that allows
you to promote another company's product or service on your
web site to earn a percentage of the sales. As one of the company's
"affiliates" (promotion partners) you earn a commission
each time someone you've referred to their web site makes a
purchase. You might post a banner on your web site that links
to the affiliate program's site, or you might publish an article
about the company and their products in your newsletter.
No matter how you
promote them, though, it's a win-win arrangement for
both of you because:
- The affiliate
program gets "no-risk" advertising (in most cases,
they don't pay you unless one of your referred visitors makes
a purchase),
- And you, the
affiliate, get the opportunity to earn easy extra
income without the hassles of production, packaging, shipping,
or customer service. Generally, there is no fee for
you to join and you can leave the program whenever you choose.
Forrester Research
recently reported that by 2003, 21% of all online sales will
be driven by affiliate sites promoting affiliate products like
this; however, before you become an affiliate and grab
your share of this multi-billion dollar commission income pie,
it's extremely important that you educate yourself on how to
know which is the best affiliate program to join and which are
the most profitable affiliate products to promote.
While it's not
uncommon to find site owners earning $40,000+ per year promoting
just one or two affiliate products (and that's not including
the "regular" income many of them earn promoting their
own products), the fact is that not all affiliate programs are
created equal. For example, while our own Internet Marketing
Center affiliates enjoy commissions upwards of $4,000+ per month
(lower traffic sites typically see $400 - $900 a month), there
are plenty of other affiliate programs out there that are NOT
as generous... or as reputable!
With literally
thousands of new affiliate programs having come online since
my last article on this topic, I wanted to make sure that you
don't make a mistake and waste your time and efforts promoting
a program that will not generate the extra income you
deserve.
So to help you
choose the "right" affiliate program, I've put together
a list of the seven critical questions you MUST ask to ensure
you make the best choice and give yourself the greatest opportunity
for success.
Question
#1: Is the product or service offered for resale by the affiliate
program something you would use and personally recommend?
First and foremost,
the affiliate product you promote should be something that you
truly believe in. It should be something that you would personally
use yourself and be comfortable recommending to your best friend.
Think of your role as a consultant who personally:
- Researches products
available in your specialty,
- Objectively
compares the product to its competitors,
- Ensures that
the one you choose to promote outperforms the competition
by offering a major benefit,
- And then "reports"
your findings to your web site visitors and opt-in subscribers.
Your customers
benefit by saving the time they would have taken to conduct
their own research, by saving money, and by being offered the
best solution for their purchasing dollars.
Look for
products that offer exceptional value and unique benefits
that potential buyers want but will not be able to find anywhere
else. During your research, also watch for new product announcements.
New products can bring in first-time buyers, previous purchasers
who wish to upgrade, and owners of competitive products.
With literally
thousands of programs to choose from, there's no reason for
you to promote an affiliate product that you don't truly believe
in. Money is a great motivator, but you should never let the
lure of "quick cash" cloud your thinking. When you
build your online business around the best interests of your
customers, the money will follow.
Question
#2: Does the affiliate product you are considering promoting
"fit" with your web site's theme?
As you research
various affiliate products, watch for those that fit closely
with your existing web site's theme; any affiliate product you
consider promoting should match the interests, needs, requirements,
and budgets of your current customers and web site visitors.
For example, if
you sell wild bird feeders, you could join an affiliate program
that allows you to earn commissions promoting bird feed, books
on identifying wild birds, audio recordings of birds, binoculars,
and maybe even night vision goggles for late-night bird watching.
Any product that
enhances customer enjoyment, increases personal productivity,
or provides a desirable benefit should be considered. Also,
look for products that can be used alongside your offer, or
that may be needed prior to using your product or afterwards.
You will then be offering your customers a "complete"
solution... not just one component of it.
Pay close attention
to the comments you receive from your customers and subscribers.
Both positive and negative feedback can give you critical clues
about products or services your market is looking for to fill
a need that your product cannot. You can then use this information
to look for an affiliate program that offers more of what they
tell you they want, or that provides a solution to one of their
pressing problems.
SPECIAL
NOTE: If you find an exceptional product that
does not match your web site's theme or the interests
of your visitors, and if it is so exciting that you believe
it has excellent potential for a different niche market,
then I suggest you develop a separate web site, opt-in
mailing list, and promotional campaign just for that specific
product.
You'll earn
much bigger commissions developing targeted niche sites
like this than by turning your homepage into a flea market
that makes you look unprofessional and decreases your
sales. |
Question
#3: Is the company reputable?
Your buyers are
relying on you to make sure that every product and service you
recommend will perform as promised. If you're considering joining
a particular affiliate program, check to see how long the company
has been in business and investigate them as thoroughly as you
would any prospective business partner. See if they offer a
"testimonials" page. Ask questions about their products
in various industry newsgroups and bulletin boards.
When you recommend
another company to your visitors, it's your reputation that's
on the line. Ask yourself if associating with this affiliate
program will enhance your reputation with your online community.
If it won't, then you have a good reason to pass on the "opportunity."
Your reputation is priceless. Only associate with the best in
your industry.
Question
#4: Do they stand behind their product with a solid guarantee
and excellent after-sales service?
A key component
in selling over the Internet is removing as much of the "risk"
as possible for the potential customers -- people will look
very carefully at the guarantee that comes with any affiliate
product or service that you promote. If the affiliate program
you are considering joining does not stand behind what they
sell with a risk-free guarantee, then you can expect to lose
sales and affiliate commissions to their competitors who do!
As you look at
the guarantee, read the fine print. Are the rules for a customer
getting their money back so tough that it becomes discouraging
to even try? Is it guaranteed for 72 hours, 30 days, or a lifetime?
If no refunds are allowed at all, then the company is making
a statement about not only their product, but also their attitude
towards customers.
Phone their help
desk and see how you are treated. If they do not provide a phone
number that clients can call, then try sending an e-mail to
their customer support. Your inquiry should be answered promptly.
Choosing to associate
with an affiliate program that offers "live" support
by phone is important since 57% of online buyers prefer to speak
directly with a "real" person in customer service.
Many of your potential buyers will want to make sure that the
company has someone they can turn to for help before they make
their online purchase.
Question
#5: How good a job does the company web site do of selling their
product?
As an affiliate,
you will be referring your visitors and subscribers to the affiliate
program's sales site. It is the other company's "job"
to provide all the information a potential buyer needs to make
an informed decision and then close the sale.
Your web site should
not have to be a "sales site" for the affiliate product
you're promoting. It should be enough for you just to get visitors
interested with a personal recommendation that links visitors
to the sales site. You may only need a simple paragraph stating
something like…
"I just
recently discovered a new toothpaste that I am sure will interest
all my
fellow Nut-Lover.org members. It is made from a variety of
Amazon rain forest
nuts and rum and it has the best taste I have ever enjoyed
while brushing my
teeth. You can visit their site now at..."
You should be able
to explain the product and its unique benefit to your visitors
in just a few compelling sentences. Once visitors click through
from your site to the affiliate program's site, the potential
purchaser should easily be able to get all the information they
need to make a buying decision.
If the potential
affiliate program's sales site is confusing, hard to navigate,
unfocused, too technical, or overrun with distracting graphics,
then prospective buyers will quickly move on before they arrive
at the order page. If it's a really bad site, your referred
visitors won't be able to find the order page at all!
Before joining
an affiliate program, look at their product pages from the perspective,
knowledge level, and personal interest of a typical visitor
who comes to your site. If you have a lot more technical expertise
or specialized knowledge than most of your visitors, then terms
and explanations that are easy for you to understand could be
mind boggling for them.
Question
#6: How are commissions paid?
There are a variety
of tracking and payment systems that affiliate programs use
to calculate your overall sales and commissions. So before you
sign up, you'll want to make sure you have a thorough understanding
of how -- and when -- you'll be paid. Factors to consider include...
a) How
much commission will you earn on each sale?
Consider both
the dollar amount and percentage of the sale price that you
will receive. If it's a product that you'll sell high volumes
of, a lower commission may be more acceptable than a high-priced
product that you'll make few sales with. Look for products
that you'll be able to sell in high volumes while earning
a hefty percentage of the sale -- this is the ideal combination.
For example,
here at IMC we pay our affiliates $65 for every sale of our
#1 best-selling "Insider Secrets To Marketing Your Business
On The Internet" course. That's over 30% of the total
price…
and a huge chunk of our profits.
However, we're
willing to pay our affiliates such high commissions because
we recognize the "lifetime value" of our customers.
Any affiliate program you join should recognize this, too.
b) Is the
program one-tier or two-tier?
All affiliate
programs are either one-tier or two-tier. With one-tier programs,
you recommend the product to your customers, visitors, and
subscribers, and earn a commission for each sale you refer.
With a two-tier
program, you earn a commission on each sale you refer. However,
you can ALSO recommend the affiliate program to your customers,
visitors, and subscribers. Each person who signs up for the
program through your referral becomes your "sub-affiliate"
-- and you earn a commission on each sale they make!
For example,
the IMC Affiliate Program is two-tier. If you joined our affiliate
program and sold a copy of our "Insider Secrets"
course, you would earn a $65 commission. If, as a result of
your recommendation, a visitor to your site clicked through
the affiliate link we give you and joined our affiliate program,
they would become your "sub-affiliate." Each time
one of your sub-affiliates sells a course, they earn a first-tier
commission of $65, and you earn a second-tier commission of
$20.
Obviously, the
benefit of joining a two-tier affiliate program is that you
have an opportunity to recommend the program to your customers
and subscribers to earn some easy extra income on the sales
they make.
c) Will
you earn a one-time commission or residual income?
Affiliate programs
that allow you to promote products that customers run out
of, use up, or need to renew are frequently "residual
income," which means you receive a commission every time
the same customers come back to purchase more of the same
product -- rather than just earning a commission on the initial
sale.
Good examples
of products or services that might be offered as residual
income through affiliate programs are cleaning supplies, flowers,
web site hosting, newsletter subscriptions, and dating site
memberships.
Commissions from
residual income products can really add up because on top
of the "first-time sales" commissions you can earn
each month, you can also earn more and more "residual"
commissions as satisfied customers you referred come back
to purchase more of the same product!
For example,
"Secrets To Their Success" (the IMC private members'
site that features interviews with successful online business
owners) is offered through the IMC Affiliate Program as a
"residual income" product. We pay our affiliates
a residual commission of $6 per month for each new subscriber
they refer for as long as that person remains a subscriber.
And while $6
might not seem like very much, when you do the math you will
see that your commissions from a residual income program like
this can snowball very quickly:
- 10 subscribers
@ $6/month = $60/month OR $720/year
- 100 subscribers
@ $6/month = $600/month OR $7,200/year
- 500 subscribers
@ $6/month = $3,000/month OR $36,000/year
As you can see,
the biggest benefit of residual income programs is the cumulative
commissions you can earn. Once you've "sold" a first-time
customer, you don't do any more work, but you continue to
rake in the commissions for as long as that person remains
a customer.
d) How
much commission do you have to earn before the affiliate program
issues you a check?
Many affiliate
programs require you to have earned a set dollar figure in
commissions before they will issue you a check. Obviously,
printing and mailing checks is an expense for the company,
so it makes sense that they may not want to issue you a check
for only a few dollars. However, there are some programs that
set this "minimum commission" figure extremely high
($100 and up), which means it can be months before you see
your first check.
Before joining
any program, find out the minimum amount that they'll issue
a commission check for and how frequently your checks will
be mailed. Make sure you're comfortable with these regulations.
Ideally, you should look for programs that pay you monthly,
no matter how much you've earned.
e) What
currency is the check issued in?
This is an important
question if you're considering joining an affiliate program
based in a foreign country or if you want to be paid in a
strong currency.
f) Can
you check your sales statistics online?
Whether your
sales are shown online in "real time" or you are
notified by e-mail whenever you make a sale, be sure to maintain
your own records to make sure your figures match the company's.
Naturally, the
easier they make it for you to track your sales, the more
ways you can test your own promotional efforts (newsletters,
advertisements, offline promotions) to see which ones are
giving you the best response and have the highest conversion
(leads to sales) ratio.
g) Within
what time period do your visitors have to make a purchase for
you to be credited with the sale?
Ideally, your
referrals will buy "on the spot" once they click
through to your affiliate partner's site. Realistically though,
many people hesitate to make a purchase until they have more
information, more money, or feel more confident that the product
or service is exactly what they are looking for.
To track the
sales of those people who click through your affiliate link
but don't purchase the first time they visit the affiliate
program's site, you want to make sure the program you join
uses "cookie" tracking.
"Cookies"
are small files that, in this case, contain the unique affiliate
identification number you should be given when you join a
particular program. This cookie with your affiliate ID# is
saved on the visitor's computer so that if they leave the
affiliate program's site, but come back again later to buy,
you will be credited with that sale.
SPECIAL
NOTE: This is very important! You'll also want
to find out how long the cookies are "set" for.
For example, if a company sets their cookies to 30 days,
then you will be paid a commission for every buyer you
refer who makes a purchase within that 30-day period.
If the affiliate
program sets their cookies for 30 days and your referred
customer buys 31 days later, then you won't earn a cent.
Here at IMC, our cookies are set for three years.
Be sure you have the answer to this important question
before you make your final selection of which affiliate
programs to team up with. |
Question
#7: What advertising and promotional tools do they provide you
with?
The affiliate program
you join should not expect you to reinvent the wheel. They should
have at least a handful of tools that you can use to promote
their products like:
- Banners
- Text links
- Classified ads
- Product photos
- Testimonials
- Articles
Everything they
provide you with should already be tested and proven to generate
the highest click-throughs and sales, so you can immediately
implement them and start earning top commissions. They should
also provide some kind of training... or at least be willing
to speak with you personally about how you might best promote
their products in your newsletter or on your web site.
For example, if
you'd like to see what a highly developed affiliate training
program might look like, check out our IMC Affiliate Support
Center at http://www.marketingtips.com/assoc.
Just sign up as an affiliate (don't worry, it's free to join
and you're under no obligation to do anything) and you'll receive
the username and password you need to snoop around and check
out the resources we provide our affiliates with.
Final Thoughts:
With so many great
affiliate programs to choose from, with a little research you
should have no trouble finding profitable affiliate products
to promote and earn top commissions. Look for products and services
that complement your existing product line, match the interests
of your visitors, and offer exceptional value.
Only deal with
reputable companies who are proud of their products, stand behind
them, and will bend over backwards to please their customers.
With the wide variety of commission pay plans available, choose
one that offers an attractive incentive.
To find top affiliate
programs, you can visit:
No matter which
affiliate program gets you the most excited, use the seven questions
I've provided you with in this article to thoroughly investigate
before you invest your time and effort. Once you join, if you
actively participate, continue to learn, and keep testing, you'll
separate yourself from the pack and soon be well on your way
to earning a serious part-time or even full-time income promoting
affiliate products.
ABOUT
THE AUTHOR: Derek Gehl specializes in teaching real people how
to start profitable Internet businesses that make $100,000 to
$2.5 Million (or more) per year. To get instant access to all
his most profitable marketing campaigns, strategies, tools,
and resources that he's used to grow $25 into over $60 Million
in online sales, visit: http://www.marketingtips.com/t.cgi/892189
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