How To Create An Affiliate Marketing Program For Your Business
Learn how to create an affiliate marketing program for your business, setup your affiliate commissions, and tips for recruiting affiliates who will promote your products and services.
Do you want to generate more revenue for your business? If so, then it’s important that you start an affiliate marketing program. Affiliate marketing is a way for businesses to generate more revenue without having to spend money on advertising. In this blog post, we will discuss how you can start and grow your own affiliate marketing program.
You use an affiliate program to draw in partners (known as affiliates) who agree to place links to your business on their websites, blogs or social media accounts. In exchange, they earn a commission whenever someone places an order via that link. This means your business only has to pay for marketing when a product or service is actually sold which is a great deal for business owners.
The process of implementing an affiliate program into your existing business is challenging, despite its seeming simplicity. You’ll need to find affiliates who are interested in the scope of your business and create a commission plan that aligns with their needs, measure their success carefully, and make sure they adhere to whatever guidelines you require.
In this article, I will talk about if an affiliate marketing program is a good strategy for your business, how to get it started, and tips for growing your program.
Is An Affiliate Marketing Program A Good Idea For My Business?
There are a lot of benefits to having an affiliate program in your marketing arsenal. Here’s how it works: you give someone else the rights (usually for free) to promote your services or products on their site and get paid commission when they make sales. This is how most people start with affiliate marketing, but there are different types of programs such as exclusive or non-exclusive that will have different costs associated with them. What this means is that sometimes a company may only want one person out there selling exclusively on their behalf while other times it just needs more people peddling its wares so long as those new sellers don’t interfere too much with current ones.
Whether you sell physical products or a digital subscription service, there’s a good chance affiliate marketing will work for you. Affiliate programs are relatively niche, though – your company must meet several standards for an affiliate program to work.
Based on my years of experience in SEO and affiliate marketing, the niches that seem to have the most success with creating an affiliate marketing program are:
- E-commerce brands
- Beauty brands
- Apparel / clothing
- SAAS / Technology products or services
- Health brands
- Subscription services
An affiliate marketing program is typically a good strategy for business owners because it doesn’t require any upfront cost because you only pay your affiliates after they have sent a sale to your website.
Choosing An Affiliate Network To Host Your Affiliate Program
Choosing the affiliate marketing network to host your program can be difficult. The first thing you want to do is determine how much time and money you are willing to spend on it. These programs will range from $0-$1000 a month depending on how many features come with each plan. If you’re looking for something simple, then we recommend going with ShareASale or LinkShare as they offer beginner plans that are relatively inexpensive (for beginners). However if have an e-commerce store and want more advanced features such as automated commission management, account reconciliation, site filtering by country/language etc., then Affiliates Gateway is great choice but their program can be a bit more expensive.
If you are thinking about starting your first affiliate program for your business, then I recommend starting with a free option such as ShareASale or Affiliatly. Feel free to contact me to get my suggestion and to see how I can help you get this set up.
What Does An Affiliate Network Do?
An affiliate network is a third-party company that manages all the details and intricacies of an affiliate marketing program. They provide merchants with access to affiliates, process commissions, deal with customer service issues, offer online training programs for affiliates (and merchant how-to’s), track statistics such as click rates/conversions/revenue generated etc., manage any necessary relationships with networks or publishers on behalf of the merchant’s brand, and more.
The affiliate network you choose will handle all of the technical tracking of clicks, sales, process commission payouts, and more. This means it is important to choose a trustworthy affiliate network. A few of the most popular networks are ShareASale, Impact Radius, Affiliatly, Commission Junction, and more.
Calculate What Commission You Will Pay Your Affiliates
To calculate how much commission you will be paying your affiliates, you need to understand how the affiliate network handles commissions. Some networks charge a flat rate fee per sale and then pay out 50% of that amount in commission for each sale made. Other networks may only take on average 20-25% in fees, but they also might have thresholds about how many sales an affiliate needs to make before being eligible for payment. For instance, with Commission Junction there are two types of payments: a standard payment and then a tiered payment structure. This means once the affiliate provides a certain amount of sales (sometimes 100 sales), the affiliate will get paid a higher commission.
When calculating how much commission you will pay your affiliates it is important to think about your profit margins as well as the cost of your product or service. For example, if you sell a product or service that costs $1,000 and only costs you $500 to create, then you have the opportunity to provide your affiliate with a much higher commission. And a higher commission will typically make it easier to find interested affiliates to promote your product or service.
A common affiliate commission can range from 10% to 20% of the price of the product or service. But depending on the niche, this figure can range anywhere from 1% to over 90%.
How To Get Affiliate To Signup For Your Affiliate Program
Now that you have you affiliate program set up and you have your affiliate commission created. It is time to invite affiliate to join your program. There are many different ways to invite affiliate to your program but the most popular methods are:
- Recruit affiliates on your affiliate network.
- Use Facebook Groups to reach directly to affiliate marketers. Try the “Affiliate SEO Mastermind” Facebook Group.
- Manually reach out to blogs, social media users, or content creators within your niche.