Affiliate Management

Merchant Affiliate Program Rules to Live By

World of Affiliate Management - Sat, 2006-06-24 21:58

Affiliate programs offer merchants the opportunity to
employ vast armies of sales people who only get paid for the
results they achieve.

The rewards for affiliates are high also, and the skilled
affiliate marketer can earn many thousands of dollars a month.
This win-win situation has led to an explosion in the number of
affiliate programs that are available to the would-be marketer, making
your job of effective affiliate program management that much more
difficult. With this proliferation of opportunities has come many questions;
how do you as a merchant differentiate your affiliate program?

To assist you, we’ll examine the qualities that affiliates look for in an
affiliate program. Good affiliate management dictates that you pay close
attention to the following factors.

1. How Much Commission Do You Pay?

This may seem obvious, but it is very important that you know how
much affiliates expect to earn from a sale. Affiliates will not spend
time and money promoting a product that doesn’t pay
well. Why should they with so many merchants to choose from?
Unless affiliates have found a niche market where they can sell vast
quantities of product, and make substantial commissions on their volume of
sales, they will likely select only merchants that pay a high commision.

2. How Much Traffic is Your Website Getting?

Prospective affiliates will try to discover the amount of traffic
your website is already receiving. Alexa.com could be a useful tool for
doing this research, but only if your primary audience is the internet
marketing community. Otherwise Alexa.com is of little or no use.
If your website is ranked in the top 100,000, you are probably getting a
good volume of traffic, and you may already have many affiliates.
Affiliates will typically research a merchant’s product if their website
has a low traffic ranking. The affiliate just might also buy the product
himself if he you can afford to do so. Otherwise the affiliate can do a
search to find out if there are any adverse comments about it on the internet.

3. How Often Do You Pay Commissions?

Some merchants pay commissions every week; some once a month,
others only pay every quarter. It is important for affiliates to know how
often they can expect a pay check if they are going to have
financial control over their business. Wise affiliates will find out
the minimum commission that they have to earn before getting paid.

Good affiliate program management necessitates a commission pay
schedule that is competitive. After all, cash flow is king to the affiliate
marketer.

4. Do You Use Tracking Cookies?

Many customers do not buy on their first visit to a merchant’s
website. It is important therefore that you as a merchant use cookies
on your site, so that the affiliate can get credit if the customer returns
and buys at a later date. The longer the cookies lasts, the better the
chance of affiliates getting paid. Many cookies last for four months, some
even longer. The longer the period, the more attracted (and loyal) the
affiliate will be to your business.

5. Do You Pay On Subsequent Sales?

Some merchants will only pay commission on sales that come
through customers visiting their site via a direct link from your
site. They pay affiliates nothing for any subsequent purchases that the
customer makes if the customer visits the merchants site directly. It is
important that affiliates get paid no matter what route the customer
returns by if affiliates are to remain loyal to your program.

6. What Promotional Resources Do You Offer?

Look at the type and quality of the promotional material that
you provide to affiliates. Do you provide articles or content that affiliates
can use to promote you on their your site? Or free guides, special offers
or samples? If the promotional resources are good it is likely
that the affiliate will be an effective sales resource for you.

For many affiliates, finding the right merchant can be a tricky business.
As a merchant, you will be well served to address the above questions
as a requisite to ensuring that your affiliate program stands out.

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