If you’re the type of entrepreneur who doesn’t want to venture into marketing ideas that have a lot of financial risks– then affiliate marketing is the right one for you. Why? Simply because you will only pay whoever advertised your product when a sale has been made. Sounds interesting, right? “Pay per sale”, remember that word. If you want to know more about it, and how to create a successful affiliate marketing program, this blog post is for you.
Understanding Affiliate Marketing
Affiliate marketing means allowing people (affiliate partners) to promote or advertise your products or services in any way and anywhere they would see fit. But you will only pay them if they drive a sale with that promotion. If you’re familiar with referral strategy, that’s how it works with the exception of the pay-per-sale rule or commission basis.
What’s also great about affiliate marketing is that you can set the commission rate. And with that, you won’t be wasting any money. Also, most affiliate partners are bloggers, influencers, and basically people who knows how to reach more people. So it’s not just getting more sales, but also spreading brand awareness.
How to Start an Affiliate Marketing Program for Beginners
It may not be a good idea for beginners and small businesses to create their own affiliate program. After all, it requires systems, recruitments, resolving issues, sales tracking, management, etc. It’s best to find your ground first by trusting an affiliate network like Clickbank. Pretty much they will do everything for you when it comes to affiliate marketing. Some networks also have an app for easy access. That way you could begin while also learning.
How to Create Your Own Affiliate Marketing Program
Step 1: Planning your Affiliate Marketing
In business, every action should start with a plan. In creating your affiliate marketing strategy, first, you need to identify how you will be able to recruit partners. You can spread the word through ads, influencer marketing, or you can contact bloggers and Youtubers to create content about your affiliate program. Next, plan your commission rate. Keep in mind that you also need to track this. You have to see if a rate is too much, too low, or effective. Then you also need to set affiliate rules (i.e. no commission for canceled order), promotion instructions, and information that you will require a partner to submit. Lastly, you need to identify how many people you should hire for program creation, maintenance, and management.
Step 2: Get Familiar with the Affiliate Marketing Technology
Even though you may need to hire an expert to create a program on your website for affiliate marketing– you should be aware of the technology that forms it.
- Affiliate Link – This is what partners use to promote your product and drive them to sales. It can be in the form of a link, ad banners (clickable pictures that directs to the affiliate link), etc. Every link should be different to each partner and even products. It is also how your program will track the partner who drove the sale.
- Affiliate Sales Tracker or Report – This will track affiliate partners’ sales so you know how much you’ll pay them. Partners should have access to this, but a different version. It should be a version that will allow them to view their sales, ad clicks, and any necessary features. This section of the program should be clear to understand and is always updated and accessible.
- Affiliate Payment Section – It should be easy for partners to get paid. Ensure that this section of the program is accessible, and has many major withdrawal options.
- Affiliate Products Sales Information – It’s a good way to attract partners by letting them see which products are getting more affiliate sales. Make sure it’s visible and updated.
Note: Keep in mind that your affiliate program should be user-friendly. Partners hate it if it’s too complicated or far from what they are using with other programs. Keep in mind that you’re not the only business that runs an affiliate marketing program.
Step 3: Execute your Affiliate Marketing Plan
Let’s say the system is tested and ready to use. Promotion instructions and rules are posted. It’s time to recruit partners, track performance of every affiliate aspect, and continue improving. Set and record metrics to measure your success.
Affiliate Marketing Tips:
- If you set payment rules (minimum withdrawal amount, payment timeline, etc.) you must fulfill it.
- Sometimes, it’s not a good idea to include top-selling products to your affiliate program. The program can a good opportunity to sell new products or those who are performing poorly.
- In creating your own affiliate program, learn from your competitors.
- Keep recruiting partners.
- Make sure that signing up for your affiliate program is free. Never charge your partners unless it’s for payment processing and applicable taxes.
- Put the effort in making your affiliate program searchable and increase its discovery rate. Keep searching for ways.
Keep in mind that an affiliate marketing program might take time to be successful. You could be on a trial and error journey. But if it succeeds, it could be your way for a booming business.
See Also: RUN A SUCCESSFUL MARKETING CAMPAIGN