Affiliate marketing is a powerful tool that can help you take your business to the next level and it is also an effective means of lead generation. If you are interested in implementing your own program, there are a few easy steps that you’ll need to take ahead of time to ensure that it goes smoothly and that it performs well.
Affiliate Marketing: What you need to know.
Step 1 – What do you plan to offer your affiliates? The affiliate marketing industry is very competitive and affiliates are naturally drawn to companies that offer terrific incentives. You may think 5% of a sale is nice, especially since they don’t have to deal with any of the hassles to make a sale, but that’s not enough. Most companies are offering at least 25%, and commonly as much as 75% commission on a sale.
While this may seem excessive, the volume of sales that you can see when you enact this level of commission can be well worth it. See what your competitors are offering, and how much you can afford to offer your own affiliates to make it worth their while.
Step 2 – Automate your system. Managing two or three affiliates is no big deal, but how about two thousand? You’ll need to have a system in place that will not only track sales, but also automate payouts. Today’s affiliates are used to PayPal, but some will accept a check. You’ll need to coordinate with your accounting department ahead of time before you actually start your program.
You will also need to consider that if you have affiliates who make more than $800 per year working for your company they will need to have 1099 forms issued to them. This means collecting information for their W2 and there are some tax implications to think about.
Step 3 – Setting up your program. Are your main goals lead generation or increased sales? Before you can take your program live, you’ll need to come up with a definitive goal. This will help your future affiliates do their job much more effectively and can have an impact on how much you are willing to pay.
Step 4 – Promoting your program. Once you have your affiliate program set up, you will need to actively seek out affiliates. It’s not enough to put a link at the bottom of your page and hope they will come. You can take advantage of online marketing techniques by using services like Twitter to encourage new affiliates to join.
You can also become a member of ClickBank, home to thousands of affiliates, provided that what you have to offer fits their guidelines.
There are many different benefits that running your own online marketing affiliate program can bring. No matter what you plan to sell or what leads you need to gather, having an instant sales force can help you turn a profit in less time and without needing to train a full time sales staff. By following these easy steps, you’ll be well on your way to online marketing success.
