What is Affiliate Marketing Or an Affiliate Site?

Affiliate Marketing Secrets

Today, we can easily create own web site. As long as you have a Computer Access Internet, You will be able to access sites such as Google, using them to provide web site design templates to create a simple personal website. The website will assign you a Uniform Resource Locator (URL) to store the content on your page, while also adding some of these sites want to advertise advertising. In this way, only one or two hours of your pages on the Internet in!

But how to make your site to achieve more function? How to use it profitable traffic to your site? If you are an online affiliate, how do you attract people to your site to buy things? A can simultaneously satisfy the above two kinds of needs and is quite popular method is to Affiliate Marketing (Affiliate Program). This article will introduce what is affiliate marketing, affiliate marketing principles apply to the object and how to use
affiliate marketing to make your site benefit from.

What is Affiliate Marketing or Affiliate Site?

Affiliate marketing is also called Affiliate Marketing Network (Associate Program), the Affiliate Web site (Online Merchant Web Site) and the affiliated Web site (Affiliate Web Site) an agreement reached between. Stipulated in the agreement, the latter providing the former users, the former to the latter to pay a commission for this. The affiliated sites to place links to business sites, and in accordance with the two sides agreed to receive advertising in return for payment of fees. Returns are generally disbursed in accordance with the adoption Affiliates (Affiliate) sites the number of visitors into the affiliate Web site or a purchase or other acts of the number of customers to be calculated.

Some are also in accordance with the affiliated Web site to access the affiliate Web site banner ads (Banner Ad) to calculate the number of people. Basically, as long as the affiliate merchant site members can give to bring passenger flow or earnings, business web site, which will be in accordance with agreement between the parties to pay a certain remuneration. The recruitment of affiliates (Recruiting Affiliate) is not only a good way to conduct online sales, but also is a cheap and efficient marketing strategy. In addition, it is a good choice of site promotion.

Affiliate marketing, at least the following three:
* Customer
* Affiliated sites
* Merchant Website

In 1996, Amazon (Amazon.com), CEO and founder JeffBezos (Jeff Bezos) to make affiliate marketing as a network marketing strategy to spread open. Amazon On-line commitment, in accordance with referral and affiliate sites to purchase books or other commodities, the number of profit-sharing commission, in order to attract affiliate website point to Amazon books for sale online, or link. The affiliated sites help only sold by Amazon’s other things to do online, including: taking orders, collection, shipped to customers. The results of this strategy victory need more than 500,000 Web site to join them.

Currently, affiliate marketing has been an increasing number of website used by a variety of forms. For many none core E-business the websites to become an affiliate member is engaged in a good way of e-commerce.

Affiliate Program, paid model

Affiliate marketing there are three models of payment:

* Pay according to sales (Based on sales to pay): Amazon’s online affiliate marketing program that is paid by sales of a typical example. In such a pay model, only when a customer through the affiliate link to visit the merchant web site members and produce the actual purchase, the affiliate Web site will pay to affiliates. Some merchants, like Amazon, the same line, according to a certain percentage of sales paid; there are also some merchants for each product sold will be paid a certain amount.

* Pay-per-click (The amount of pay-per-click): In this payment model, the affiliate Web site under the affiliate website and click on the link to point to the number of visitors to the affiliate membership fee. Visitors do not need to buy any commodity, but also from affiliate sites log on to the affiliate website and conduct after the act has nothing to do with the Member Web site.

* According to the number of pay-to guide (According to guide the number of payments): Click here to pay-mode operation of the business according to the completion of guidance (i.e., fills out and submits a form) the number of visitors to the affiliate membership fee. This means that the completion of a affiliate site requires visitors to fill out the information, which information can be used as a affiliate Web site sales leads, or as sales leads to sell other companies.

There are also some other payment model. Basically, the affiliate marketing program, merchants will select their best behavior as a basis for payment, and then transfer to their affiliate sites the occurrence of this behavior, the number of clients paid to affiliated members.

Several basic pay in the above model, derived from some other more prevailing payment mode:
* Two-tier affiliate program(Two-Tier Program): two-tier affiliate program structure and Amway, Avon and other companies used in multi-layer direct marketing (also known as “network marketing”, is a development on behalf of salespeople and commissioned salespeople sell and profit from marketing) is similar to the organizational structure. In this payment model, affiliate membership is not only the sales from its Web site, click on or get a commission to guide behavior, but also its development, and point to cascade under the affiliate Web site is a member of sales, clicks or get a commission to guide behavior.

* The residual income affiliate program(Residual Program): This affiliate program provided that if the members from the affiliate web site visitors to enter the affiliate Web site to purchase products at the affiliate Web site or services, a continuous, affiliate members can thus continues to be a commission. Many customers get from regular income (such as monthly service fee charged) of online merchants to use more of this affiliate program.

In addition, there are a few shows by the number of affiliate programs pay. The implementation of these programs (also known as pay-per-view program of visits) companies only in view of its banner ads the visitors visits to the Member to pay a commission. This pattern often does not fully equipped with the structure of affiliate marketing, just as a traditional advertising and marketing to operate. Compared with traditional advertising, affiliate network marketing advantage only when an affiliate member of the business produced the desired results, the merchant fees are allowed.

While the advertisers, the traditional advertising (for example, that you see on television advertising and a number of banner ads on the Internet) and risk is relatively larger. Because in the traditional advertising model, they do the ads cost effectiveness is uncertain. If your ad is greater than the benefits to the company advertising costs, advertising even if successful; but if the benefits of advertising than advertising costs, the company can only resign to fate. In affiliate marketing, online business is only valid when paid in the ad. Thus, significantly reduced the risk of advertisers. It is precisely because of this, one would like to contract for advertising sites, in order to join affiliate marketing is far more direct way of advertising is much easier to find advertisers.

How to manage affiliate marketing or affiliate software?

Conceptually speaking, affiliate marketing, it seems quite simple; However, to ensure its smooth operation, people need to do a lot of work behind the scenes. In order to truly grasp the affiliate members of the commission amount, the need for someone to track websites visited by members of the actual situation of a affiliate website.

According to the different payment models may need to determine:

* Affiliate membership in a particular site and click to enter the number of merchant sites
* Members through an affiliate site links into the affiliate website and on the website shopping or perform other acts of the expected number of clients
* In the affiliate members of the website of a affiliate website published the number of banner ads

In addition, merchants and affiliate tracking between members of the original agreement to ensure that the latter received a deserved commission.

Whether a merchant Web site to recruit affiliates, or affiliates to identify interested in affiliate marketing programs are a lot of work needs to be done. However, there are still many companies that take the time to personally manage members are quite worth it, therefore, as tirelessly as the Amazon, the pro-force into it. Although these companies the entire process of marketing the program and in full control of the commission paid on time, they are still able to attract a large number of franchisees.

Because their conditions of membership in terms of a zero risk or zero cost, that is, affiliates can link to websites to make money just doing a good job. However, for many sites, recruiting members, or join an affiliate business websites are pieces of time-consuming and laborious task. Web site owners and many have little confidence in the commission calculation of the amount of commercial sites.

Are you looking for more information on affiliate marketing? CK Fang’s has been in the business of affiliate marketing websites for over 3+ years. He is the creator of “What is Affiliate Marketing Or an Affiliate Site”, which give you information what is affiliate marketing.

Five Qualities Ensuring Marketing Strategy Success

Marketing is itself a strategy and so no marketing plan is completely fool-proof. There are some qualities that must be met to be able to consider it effective and this will help in converting customers to make marketing successful. A marketing plan is a frame work that must be followed to transform into a killer strategy. Here are five qualities proving its abilities in the marketing strategy.

Focus on the product

Product focus is not simple as it always is focused towards the market. The product varies in demand depending on the age, gender and trend. In case it is about clothing, then women in 50s if they are working would prefer formal, quality and semi formal dresses, while the younger adults may have a different focus on the product. In case you also have shoes to offer, you can help women show how they can look tall and in this way this will include shorter women who would love to gain height, thus your marketing focus widens more effectively.

Focus on the market

The market focus should be defined. It is impossible to please everyone and if you try doing so, you are going to be under severe pressure and eventually result in losses. Focus on the market fashion, but decide first if your focus is with male or female and without fail consider the age factor. By focusing on the market you will see the likes of your target audience. The other factors worth considering are the purchasing power of your audiences. If you find there is a diverse taste, set your goals by dividing, choosing and conquer the market.

Have measurable information

Anything to be marketed should be quantifiable and must be ideally in numbers. Include all the details, major and minor as detail information has a crucial role in marketing. A strategy is a must for any good marketing plan to see success. The plan that is the marketing strategy should be measurable to know the ROI. If your business is new, you can have both marketing plans, short and long. They can be interconnected. However, ensure the goals are attainable.

Accountability and responsibility

Marketing strategy is about being accountable and this in combination with responsibility alone paves way to success and to attain better results. Marketing plan fails to work in groups than individuals. It is best for each individual to have a specific task and to bring good results. At the same time paying attention to individual’s accountability helps you keep a vigilant eye on their handling of responsibilities. Without fail reprimand the failures and do not forget to reward the achievers. A perfect marketing plan requires absolute involvement that one must be committed to it. Each person should know their job and also should be aware of the outcomes.

Reviews

A marketing strategy is a planning process and an effective marketing plan handles everything from tracking performance to setting goals and measuring the units quantifiable. However, regular reviewing and revision is essential. Do not wait until the last day, keep reviewing regularly and change the plans in-between if essential.

How to Set Up an Affiliate Marketing Program – Small Business Guide

If you are not currently doing affiliate marketing then you are really missing a trick.

Affiliate marketing evolved from the simple concept that if another website sends you a visitor and that person becomes a customer of yours then you should say thanks to the other website by giving them a small piece of the pie.

Affiliate marketing has now become a lot more complex but the basics are still the same. You want as many sites as possible to be shouting about you to their visitors so that they come and see your wares, and then in return you pay a suitable reward to that site based on your business profitability and margins.

In this article I will go through a few of the things that a newcomer should consider when setting up an affiliate marketing programme:

1) The best commission/reward structure for your business

2) The best network/s to work with based on their affiliate base e.g. the kinds of affiliates that are with them and that they tend to attract.

3) How to get visibility on the key affiliates websites and with the affiliate network.

4) Working on new promotions and incentive schemes to motivate affiliates to promote you rather than your competitors.

Deciding on an affiliate reward structure for your business The first thing to look at is your new customer recruitment costs, e.g. If over one month you spend £5000 on marketing and you recruit 100 new customers then your new customer recruitment cost is £50. Cross reference this with your customer lifetime value(if you know it) to work out how much commission you can pay your affiliates.

A Basic explanation of how you could calculate this is as follows: The customer lifetime value will be the average top line profit that each customer brings you over their lifetime.

To calculate a customers life time value the best way maybe to take a group of customers that you recruited within a months date range and to track their spend over a few years, you will lose some of these customers, but others you will maintain so you need to have a good sample size for the calculation to be worthy.

e.g.

1000 customers recruited in June 2008.

  • Over the following 2 years they spent an accumulative 1,000,000GBP therefore you have a customer lifetime value of 1000GBP
  • BUT
  • Cost of goods sold were 700,000GBP
  • Business fixed costs were 100,000GBP
  • Variable business costs were 80,000GBP

Therefore a total profit for these 1000 customers of 120,000GBP over 2 years, and a per customer profit of 120GBP/customer.

This is obviously a very rough fag packet example but it is worth doing this exercise so that you can then determine the profitability of all of your marketing channels through looking at what their cost per new business customer acquired is and comparing it to the customer lifetime value.

Anyway, to keep from steering too wide form the point of the post… From this figure you can then determine how much you are willing to spend per customer on your affiliate marketing.

You now know that if you spend 120GBP per customer acquisition then you will break even on that customer so if you build in that you want to make 50% profit and spend 50% of the customer value then you can spend 60GBP per customer acquired.

Now, if you work out the average number of orders of those 1000 customers over the 2 years then you will know your average order size through dividing total revenue by total orders.

Say for example that the average number of orders was 4 then you will have an average order size of 250GBP.

So based on this if you can spend 60GBP per new customer order then your commission level for “new” customers can be just under 25%.

However, not all orders are from “new” customers so you could do one of 2 things:

1) Decide to average out commission across all sales by saying that every 1 in 4 customers is new therefore you can pay 6% commission overall

2) Decide to have a higher level of commission on new business orders and a lower level on other orders e.g. 10% and 5% respectively (although you will need to have the backend website functionality available to track different customer segments).

As well as the cost to the end affiliate you will need to figure in a network cost. As a basic guide this is about 25-35% of the commission paid to the affiliates. Therefore if you pay affiliates £1000/month then you will also need to pay your network a fee of around £300/month so this needs to be factored in when determining commission levels.

Always set your commission levels slightly lower than you can afford so that you have the option of increasing commissions for seasonal promotions and for giving high performing affiliates added incentives etc.

What is the best affiliate network for me? The amount that the affiliate networks are willing to disclose to you will depend on your skills as a negotiator and also the potential size of your business for the affiliate networks.

Approach all of the big networks – Tradedoubler, Buyat, Linkshare, Commission Junction, Affiliate Future and Clickbank, explain that you are going to be setting up an affiliate marketing program and that you want as much information as possible on why you should go with them.

Ask them:

  • How many affiliates drove a sale for them last month?
  • So that you can compare their size and reach with others
  • How many affiliates are promoting merchants in your industry?
  • So that you can see their reach in your vertical
  • How much revenue did they drive for your entire industry last month?
  • To judge the level of bottom line success in your vertical. You should also look (if possible) at the % breakdown of the revenue by affiliate e.g. what % of revenue is made up by the top 5 affiliates? Is there a lot of long tail/small affiliate opportunity?
  • How many new affiliates did they recruit last month?
  • To judge how actively they are growing and how proactive they are.
  • How many new merchants did they recruit last month?
  • Ditto, are they an arrogant and lazy network?
  • How many merchants from your industry are with them? (good to go with the bulk as there will be a good affiiate base ready to promote you if they are already promoting your competitors).
  • Who are the biggest 5 affiliates working with them?
  • Who are the biggest 5 affiliates with them for your industry?
  • How much commission will they charge on sales?
  • Can they run multiple commission rates?
  • Can they do lead generation on a fee per lead basis?
  • What does their management fee include? How much support and help can you expect from them with affiliate recruitment/reporting/problem shooting/industry updates?
  • What technology do they offer that is unique to them?

If you can get a fair bit of detail on all of these questions then you should be in a good position to approach the negotiating stage and play them off against each other. Obviously the amount of leverage you have and how far you can go will largely depend on the size of your business and what kind of revenue you will bring the affiliate networks. Make the networks excited about your marketing and growth plans. Explain your past performance and what your plans are for the next year – if they see you as an expanding and growing brand then they will stretch further to meet your needs.

By the time you have got to this stage you will have your preferences, go with the data, the best deal and your gut feel. If you like and get on with the people on a genuine level and trust that they will take your business seriously and will spend time promoting you then go with them, but only if the commercials and their business proposition stack up too. Getting visibility with the key affiliates for your market Once you have your account set up and you are ready to go the first thing to do is to put together a target list of affiliates that you want promoting you. Rank the affiliates on the list by potential and then work with the networks on getting the best real estate possible on the affiliates sites.

Get the affiliate network to give you a list of every affiliate who has driven a sale for any competitor of yours (that is in their network) within the past 6 months. Ask the affiliate network to rank the affiliates in order of revenue driven (obviously without the sensitive data) if they mess up and give you the sensitive data (unlikely) then all the better. Put together a promotional plan for the first 3 months and make sure that your offers blow the competition out of the water. Affiliates are businesses in their own right so are just interested in promoting the merchant who can earn them the most cash, so if you give them a better % commission and your conversion rate is as good as your competitors or better then you will quickly win them over. Check out the top affiliates EPC (earnings per click). You then need to work out how you can give them the opportunity to earn over this with you – basically calculate: (site conversion rate x (commission rate per sale X Average order size).

Ensure that the affiliate network have agreed to give you featured merchant status for the first month and that you are featured all over their website/blog/twitter/facebook etc and emails.

Email all of the other affiliates straight away introducing yourself as their support at your company, explain your proposition, affiliate program terms (commission rate etc) and explain that you have an unbeatable offer for the first month that is going to have sky high conversion rates.

Save some fat in the promotional spend plan for the top affiliates so that you can offer them something special for a great location on their site.

Once you have the top 10 on board and are recruiting the long tail through the email then get on the phone and work your way down the list getting more and more affiliates on board, there will be many that you cannot get hold of and/or who do not reply; do not be disheartened as this is normal, affiliates are busy people. Just try to think of good ways to grab their attention and leverage all contacts at the network to aid you in getting in contact with the affiliates.

Keep in close contact with the network – let them know that you will make them work for their commission, be thankful and complimentary when they are good but beware of them being more lazy after the initial flurry – you need to hold the pace for at least the first 3 months and then it should start to get easier as you have some secure relationships that do not need too much maintenance. This applies to both affiliates and the networks.

New affiliate promotions to get the affiliates promoting you instead of your competitors This is obviously a tricky one with no clear right/wrong way. There are a few rules that I would stick to though:

Keep things fairly simple – as mentioned above affiliates are busy so if you come up with a highly complex (however fun) promotional idea they may just switch off before you sell it in to them.
Keep things fresh – do not just dole out the same old promos every month to the affiliates, there will be no real incentive for them to keep promoting you and trying new things for you if they already know how it will perform on their site.

If possible base your promotions for the top affiliates around their site and what works well for them e.g. if you sell T-shirts and cushions and one site is flying on the cushions then give them special offers around cushions.

Use the data you have after each promo – see what works for who and try to understand their site use profile so that you can meet their needs.
Show your face at affiliate events, make friends in the industry, do people favours and just generally enjoy yourself as if people see you being fun and positive socially then it will impact the business relationship you have with them.

If anyone has anything that they think could be added to this post then just let me know and I will add it in. All the best with your affiliate marketing!