Affiliate Marketing What Is It And Why Use It?


Affiliate Marketing is having Affiliates do your Marketing for you. What I mean by Affiliate is someone who tells people about your product/service and you pay them for a desired response, such as a purchase.

Affiliate Marketing is one of the best ways to get the word out about your product/service.

The best way to pay Affiliates is pay per sale. This means that you only have to pay your Affiliates when they actually make a sale. This reduces your advertising costs dramatically. your Affiliates take on all the risks so you don't have to worry about wasting your money on advertising which may not produce any results.

Using Affiliate is a very cheap way to advertise, however it is very effective. The software required to start up your own Affiliate program can cost only about $50 per month.

Then after that just wait for people to start promoting your product/service for you.

Please remember that 5% of your Affiliates will do 95% of the selling. What I mean by this is that most of your Affiliates will just sit there and do nothing. This can be countered if you teach them what to do, exactly how to do it and providing everything for them so they have to do as little work as possible.

To find out about teaching your Affiliates please see the "How To Super Charge Your Affiliates" article

You don't have to use this form of advertising just to sell your product or service. You can also use it to grow your opt-in mailing list. This is discussed in another article.

How Much Should You Pay Your Affiliates

How much you pay your Affiliates really depends on how much your product/service costs, its profit margin, how much you're willing to give up and what action you want to take place.

Lets say that your product is priced at $100. Lets also assume that it cost you $10 to make it. This leaves you with $90 profit.

How much of this do you want to give away to the person that made this sale possible?

Personally, I believe that you should give a rather high percentage of the profits back to the affiliate (Depending on how many sales they regularly generate), because without them, you wouldn't have made that particular sale at all, so reward them for it.

A fairly decent reward is about 50% of the revenue generated. Your product is priced at $100 so a $50 commission is quite generous. It really depends on your other costs (such as a mortgage) you have, which would help decide on a fair commission to both you and the Affiliate.

Another factor which plays a part is how much additional advertising you do, such as pay per click. For example, if you rely solely on your Affiliates to Market for you, then you may want to reduce the commission you pay to them to help you survive. However, you may want to pay them more, to encourage them to send more sales you way. It really is a judgment call.

On the other hand, if you advertise in other ways effectively, then you can afford to pay higher commissions, because you're not putting all your eggs in one basket.

In the end it's all down to how greedy or generous you are. The best advice I can give you is to pay the affiliate what you think he/she deserves. Hopefully that way everyone is happy and earning their fair share.

That is the key to a successful affiliate program.

By Stephen Warren, the creator of www.marketershandbook.com">http://www.marketershandbook.com, the completely FREE guide to marketing online, with useful articles and links.


MORE RESOURCES:
This morning we see three key reports of economic data for investors to mull over Major U S indexes now have their eyes on a possible ninth straight week of closing in the green but based on more speculation and hopefulness than actual statistics Being Thursday we have new weekly

We remain lacking on normal economic data ahead of today s opening bell not only because Q4 earnings season s deluge has dwindled but because the overhangs of the 5 week government shutdown has continued delays in data such as the January Housing Starts and Building Permits that had

To kick off a shortened week due to Presidents Day Monday we see a much lighter calendar both in economic data and Q4 earnings releases Aside from a report on the February Home Builders Index due after the opening bell and a few key earnings reports so far this morning we re notably

As I have pointed out on many occasions in the last few months, the big move down in stocks at the end of last year wasn’t about anything that actually happened. While Q4 wasn’t exactly a barnburner, it wasn’t a disaster either. Job growth remained strong, wages were starting to pick up as a result and, most

The market surged on Friday, driven by renewed optimism that when the March 1 deadline comes around, the U.S. and China would have already shaken hands on a trade truce. Tariff-related rhetoric and thoughts of an economic slowdown had become a restraint, particularly amid the recent market rebound. Was it a “head

Data collection is no justification for increasing investor

Retail sales for December 2018 showed consumers backed away from the spending trough. Is this a precursor for things to come? Retail sales release for December was delayed due to the government shutdown. To understand graphically how bad the headline data was for retail sales, the graph below adjusts the

Import and Export Prices 160 for the month of January have been released ahead of this morning s opening bell with results much as we ve seen with recent economic metrics coming up short of estimates Import Prices month over month hit 0 5 lower than the 0 3 expected

Gold prices have been down ever since the precious metal hit all-time highs of nearly $1,900/oz eight years ago. That’s quite a long time, and a nice rally appears overdue. Well, one Wall Street punter thinks that time is just right to purchase the commodity. Bernstein says investors should look at gold and gold

Futures have swung to negative levels following three main economic metrics hitting the tape before Thursday s opening bell Happy Valentine s Day BTW everybody Perhaps early traders are still trying to digest what these figures mean and none are cataclysmic though all are worse

Adobe stock A new study has found that a horrifying 530,000 families turn to bankruptcy each year due to medical bills they can’t pay. In the end, it’s easier to declare bankruptcy than to allow oneself to drown in medical expenses. That’s how you know when a country is broken. According to researchers of a

The American political discourse has changed since the 2018 midterm election. Enthusiasm and passion were to be found on the left-wing of the Democratic Party. A new sense of hope and mission replaced the defeatism and cynicism seen in 2016. Some identified with democratic socialism, but in the political rhetoric the

Pre market futures are again trading up today as expectations continue to be favorable for two things that have yet to be officially resolved the U S China trade war where an increase on the current 10 tariffs on Chinese goods is scheduled to increase to 25 March 1st and a budget

Following an optimistic start to the year and the  best January ever  for oil prices, hedge funds and other money managers began the month of February more cautiously as fears about global economic growth outweighed (again) OPEC’s cuts and U.S. sanctions on Venezuela and Iran. In the latest reporting week to

Chinese President Xi Jinping hatched " Made in China 2025”,   it didn’t go down well with many world leader, especially in Western economies. And now Germany has proposed an equally abrasive push. Germany’s economic affairs minister, Peter Altmaier, has launched an ambitious and somewhat controversial industrial

Alopa.com ©