Affiliate programs will enable a business to generate a lot
of traffic and therefore boost sales through promotion by third party sales or
sites. It's also a cost effective way
to advertise your products and services as you pay only for the efforts that
actually turn into sales.
Setting up your own affiliate system can be either easy or
overwhelming, all depending on how many affiliates you want to recruit, as well
as your payment policy and the type of product that you are offering.
As for your affiliate systems, there are two options for
your business - outsource the entire system or run your own affiliate system
through your own web host. Each one
boasts its own advantages as well as disadvantages.
If you have a small amount of affiliates, then you can run
your own affiliate software. If you
plan to recruit a large number of affiliates, then you will probably need to
outsource. The reason for this, is
because you'll find it easy to deal with large number of sign ups, track
payments, monitor clicks, etc.
Types of affiliates
There are numerous types of affiliates out there to choose
from. There's the pay per sale, there
an individual is paid only if a sale is generated from the affiliate's
link. It's the least attractive to
people, unless the product is in high demand and the most profitable for
business.
Another type is the pay per lead, where you pay only for
traffic. With this type, the affiliate
is paid only if a visitor is generated from the site of the affiliate. It's attractive to affiliates although
costly to web site owners due to the possibility of non-sale visits.
Considerations
When setting up an affiliate, something to consider is
whether or not you'll approve affiliates manually or automatically. It's normally recommended to start affiliate
programs with your established customer sites then progress to new ones.
If you are dealing with pay per clicks, you may have to
control the affiliates, as the quality of visitors will be a huge factor when
it comes to the generation of sales. By
manually reviewing, you'll also be able to judge the website or individual
affiliates to see if it's in the best interest of your company.
If you decide to use your own affiliate system, one of your
biggest challenges will be how to pay affiliates a percentage of what you end
up receiving from customers. To do
this, you can rely on software such as Affiliate shop to help you track and
manage
Commissions.
Telling
Good Traffic from Bad
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