Affiliate Networks .advantages
Affiliate marketing is revolutionizing the way online
retailers advertise and consumers shop online. It allows retailers to place advertising
links and even individual products on affiliated web sites across the Web, greatly
expanding their "shelf space" and their online presence. While affiliate
marketing has proven to be effective, it's not a get-rich-quick scheme, and retailers must
manage their programs and develop strong affiliate relationships to make their programs
In order to recruit the high-quality affiliates necessary for an effective sales force, retailers must maintain a competitive program and open communication with their affiliates. With these ideals in mind, retailers can gain the attention, trust and profitability of quality affiliates.
Become an Affiliate
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Consumer and affiliate alert!
Develop the Relationships -
In addition to tracking the number of sales and leads, there are many variables retailers can evaluate to determine an affiliate's progress and potential success including click-through rates and conversion ratios. Affiliates not driving a large percentage of sales, but generating a large number of click-throughs have potential. They may simply be using links that are less effective and, with a small change, could drive more sales. By not catching and addressing this type of problem quickly, retailers can lose potentially successful affiliates.
Observe Customer Acquisition Costs
Affiliate programs are cost-effective marketing. Observe the financial advantages of acquiring customers through affiliate marketing versus traditional online channels and reward affiliates accordingly. For example, with CPM banner buys, Company A pays approximately $20 to acquire one customer. However, Company B pays affiliates a 10 percent commission for each $100 sale. The customer acquisition cost through its affiliate channel is a fixed $10. Company A assumes a larger risk with the CPM buys, because it costs twice as much and there is no guaranteed return on investment. Company B only pays when an actual customer is acquired.
The #1 high conversion affiliate merchant program over the last 5 years is operated by Holdup Suspender company. They average 1 sale per every 20 referred shopopers for the patented suspenders and Sloops blue jeans. This is a private program and you can apply at www.mysuspenders.com/affiliate.htm and see if your site gets accepted. No BHO parasites -no SE or e-mail spammers are allowed into this one.
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TIP: Try newsletters and Press releases to compliment your affiliate program to generate traffic. Best discussion group on the internet for affiliate marketing is at www.abestweb.com join it for free and converse with 20,000 affiliate marketers.
This acquisition information empowers retailers to reward superior affiliates with a percentage of the money saved through affiliate marketing. If every affiliate receives a 10 percent commission, and a retailer raises the most profitable affiliates to a 20 percent commission, they develop a strong relationship with them. Affiliates will not want to remove those links from their sites. Don't expect affiliate results or custom links until after they receive their first pay check!!!
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A pay-per-click payout is an effective motivational tool for rewarding affiliates with unusually high traffic. Combining payout types is a hybrid program that is more successful than single pay structures. Another payment option is tiering, which adjusts the commission rate based on an affiliates sales volume for the month. The more sales they generate, the higher their payout commission rate like TigerDirect or Overstock offer all their affiliates
Two-tier commission structures, which reward affiliates for new recruits, are also effective motivators. Through this system, affiliates receive small percentages of a new recruit's commission, thereby encouraging them to promote your program. To make recruiting easy for affiliates, create links advertising your program that they can simplyplace on their sites. Custom payouts also keep affiliates motivated. Create special payouts for seasons or quarters or special deals for high-selling affiliates. These short-term programs allow retailers to return to their standard payout if these promotions don't work. Take risks to give affiliates new incentives to earn more revenue.
If you want to learn more about affiliate marketing I'd recommend joins the active community forums at www.Abestweb.com home to 16,000 affiliates-merchants and affiliate managers.
Affiliates join retailer programs, promote the products, and can stop working with a retailer at any time. They want programs that work for them, not vice versa . and you can't fool their customers with lousy offers. The quality of a retailer's site, products, and customer service, as well as its conversion ratio all impact the quantity and quality of affiliates. When affiliates work with multiple programs, they can easily see which programs are successful and drop the programs that are not.
Selecting a Network
Affiliate programs The Simple truth
*** It's about time someone remodeled the existing Affiliate Marketing Networks, so corrupted by an advertising mindset, into a model that works for both Affiliates and merchants. I therefore have formulated all the pieces necessary to migrate the easily abused advertising based model into a sales based model I dubbed The Safe Haven Network in early 2004. Read all about this revolutionary Affiliate Sales Network model which might launch in 2005.
Google's Chief Financial Officer, George Reyes stated, Click fraud is the biggest threat to the Internet economy. He went further, We are exposed to the risk of fraudulent clicks on our ads. We have regularly paid refunds related to fraudulent clicks and expect to do so in the future. Overtures Senior Manager of Loss Prevention and Analytics affirmed, We try to be very liberal in our refunds because a big part of what we do is instill trust in our model.
So what is click fraud? Overture defines it as clicks not conducted in good faith. Google on the other hand terms it as malicious or artificial clicks. Another definition could be: The systematic act of stealing money from PPC (Pay Per Click) internet search engine/marketing campaigns via human or automated means by synthesizing clicks. It is generally accepted that click fraud claims 30% of PPC advertising expenditure - a figure that is estimated to balloon to more than US$3 billion in 2005. Fraud Bots and well organized teams, amateurs and competitors are more than likely plundering your precious PPC marketing budget right now!
I highly recommend merchants and affiliates use Click Sentinel. This
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Developing a successful affiliate marketing program is crucial to a retailer's business. Retailers can easily transform affiliates into an effective online sales force through proper management and strong affiliate relationships. Simply placing a banner that says "Affiliate Program Here" won't create results - the relationship makes it happen.
Often our web clients ask IMS where they can purchase an affiliate network management package that administers replicated sites and multiple merchants. Take look at Kowabunga's " My Affiliate Program ", which is more expensive than the one I recommend above for individual site owners.
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