Most businesses thrive on referrals. You’re willingness to share a portion of the profit in exchange for new leads and more sales will improve your business a hundred fold. Setting up your affiliate system with a good company is just the start. Here are some of the things you need to consider when you’re managing your first affiliate system.

Pricing

If you’re going to split the profits with your affiliates, you need to go over the prices of your products. Strike a balance between reasonable pricing and generous incentives. If you are selling digital (information) products this is likely not an issue. However, for physical products, you must make sure that your price covers inventory costs and taxes before you think of setting up a generous affiliate program.

Commission rates

Whatever you do, make sure the affiliates will think your incentive offering is worth it. Your goal must be to run a program attractive enough that affiliates will be happy and proud to work for you. If you are too stingy with your affiliate commissions your affiliates will find someone else’s products to promote and you don’t want that.

Affiliates will work hard for you if they know they are being rewarded fairly for doing so. Affiliates will be working for free for your in exchange for a percentage of the profit. The best affiliates set up websites to promote your products, and those things cost money. When deciding on commissions have a look at your competitors to see what is standard in your industry.

Remember to take into consideration the money you spent on product development (and your own ROI) when setting up your incentive system. For downloadables, you can give as low as 40% and as high as 75%. If you’re selling software, you can give 20% commission because you may have to hire someone for updates and maintenance. For products that have to be delivered, 10% is generous.

Tracking Systems and Cookies

Cookies in internet marketing are very relevant pieces of harmless code that gets uploaded in the browser of the website visitor. A cookie acts as a tracking system that automatically reports which affiliate landed a sale. Most affiliates look at the cookie duration when choosing an affiliate program to join.

A cookie with an affiliate’s referral code gets uploaded in a potential customer’s browser and stays there for the duration that you set up. A customer who visited the site once could return in a week or so with the intention of buying something. If the cookie’s duration is 30 days, the affiliate who referred that customer will still get commission for the sale.

If you want to learn Make money online just like Russell Brunson, visit us today.

Tagged with: • •

Filed under: Online Business, Promotion and Marketing

Like this post? Subscribe to my RSS feed and get loads more!