By devising an attractive affiliate scheme and promoting and implementing that scheme in a professional manner, it is possible to generate thousands of website visitors using an affiliate of channel online. Today, affiliate marketing is a very well established method of selling online. The main advantage of affiliate marketing is high sales volume with nominal sales effort at an extremely low cost. The main disadvantage is much lower margins, (as affiliates need paying commission to remain motivated).What is an Affiliate Program? It is usually the responsibility of the affiliate to redirect visitors to their website to the merchant's website. Affiliate schemes are normally automated and structured. For instance, Merchants make it a condition that affiliates do not alter the Merchant sales copy to avoid any potential accidental or deliberate misrepresentation (and ultimately customer dissatisfaction). Affiliates usually have a unique tracking ID associated to their registration or website. Types of Commission Schemes - there are various types of affiliate models in use today. Today, textual ads are the primary form of affiliate marketing. 1) Pay per sale - the merchant pays the affiliate an agreed sum of money each time a user visits the affiliate's website, clicking through's to the merchant website, and buys something. Most merchants affiliate programs tend to have a fixed commission schemes on a pay per sale basis. 2) Pay-per-click - this affiliate commission scheme is based on the number of unique visitor clicks from an affiliate website through to the merchant's website. The affiliate benefits from of an instant and reliable source of commission. If the number of click thorough's from an affiliate's site is high and conversion rates of the merchant low, a pay per click model is ideal to maximise commission.Two Tier Affiliate Schemes - a two tier affiliate scheme is a multi tiered program where affiliates in the first level of can also earn commission from the sale was generated from affiliates that they are recruit who sit in the second level or 'tier'. Typically the first tier would earn 10% commission on sales it indirectly generates from Merchant sales. In addition, the affiliate may earn a much smaller percentage e.g. 2% from sales from 2nd tier affiliates they recruited to the Merchant. A two tier scheme is aimed to motivate affiliates to recruit like minded people to also become affiliates. It requires additional sales copy marketing material and a good quality affiliate manager software tool. This tool links affiliates together and details of any sales, in order to calculate potentially vast commission sums. Affiliate Networks - an affiliate network website is an independently run collection of affiliate schemes which allow members of the network to join either one, some or all of the affiliate schemes registered with the affiliate network. It is a club making recruit of affiliates a straight forward process. Affiliate networks charge the Merchant to be part of the network and may even take a large slice of affiliates commission. An example of an affiliate network is Commission Junction.High Commissions - affiliates marketing efforts are directly proportional to the commission they receive (relative to your competitors affiliate commission levels). A successful affiliate business model relies on a sensible amount of available margin to be divided between the website owner and its affiliate on each sale.If your web site is very similar to dozens of other websites, all promoting their own affiliate scheme, why should a prospective affiliate sign up to your affiliate scheme as opposed to your competitors? Therefore, you must really try and sell to the prospective affiliate (via your website affiliate signup page), in order to recruit them as an affiliate. 3) Quality Feedback & Reporting - constant reassurance through online reporting and real time statistics help motivate affiliates. 4) Great Merchant Customer Service - by providing professional and service to your prospects, your sales conversion ratio obviously improves. Prospective affiliate's will be looking for affiliate schemes that provide good quality conversion ratios and have a good market reputation. 5) Merchant Affiliate Recruitment Efforts - patience/ time to recruit the desired number of motivated affiliates is very important.. . 6) Affiliate Management & Tracking Systems - as the merchant you must have a thorough understanding of online affiliate tracking software and services to ensure affiliates are paid on time, sales are allocated fairly and automated new affiliate recruitment can be initiated. If you have no systems in place there are many commercial affiliate services available or software packages to provide an end to end service to manage and track affiliate's leads and sales.
Source by ezinearticles.com
0 comments:
Post a Comment