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Franchise Secrets

The seller (advertiser, trading floor, merchant) is a web site selling its products or services and that is interested in expanding of the market through the creation and development of the affiliate program.

Affiliate (distributors, partners, resellers,) is a web site or Internet user who advertises goods or services the seller’s web site in any manner and receives a commission in accordance with the terms of the affiliate program.

Affiliate marketing is an Internet marketing industry related to affiliate programs.

First of all, let us talk about who and when needs the affiliate program. My deep belief is that it makes sense to create the program only for large sites of companies, which are already successful in the market. Otherwise, this idea may not be recouped, and instead of the positive effect a company receives negative PR from affiliates with complaints about the quality of the product or problems with its delivery. Also, you should develop the standard marketing channels before the creation of the affiliate program, so you do not lament the best position of the partner site for the key request in Yahoo (and there have been such examples in the Internet already). In short, the affiliate program is needed in order to expand the business, which has already achieved certain success, and not to develop a new born business with the help of affiliates.

You also need to understand that the affiliate program is not an automatic generator of sales. If the program’s owner is interested in making it function fully and bring a good return, the infusion of financial and human resources are inevitable then. For serious programs of large sites the individual for the post of the affiliate program manager is recommended to be put into operation. His responsibilities will include attracting new partners, increasing the efficiency of existing partners, so as to modernize and improve the conditions of the program.

Let us say a few words about the aspects of relations between the owners of the programs with affiliates. The program should be planned in such a way that it was beneficial not only for site, which is a seller, but also for affiliates. Do not be afraid of making additional concessions toward partners to the detriment of your interests for the first period (for example, set a higher percentage of commission for an initial period of participation in the program). As a result, every dollar and every penny earned by partners will bring profit to your site, so that the program’s success is directly dependent on the income of partners and their attitude to you. If you decide to start the affiliate program, be mentally prepared to take care of your affiliates and support them in every way.

There is another point that should be taken into account before planning the program. There is no need to join as many partners as possible- most of the partner is passive and does not provide any significant level of sales. A well known rule “80 : 20″ says as follows: 80 percent of sales are provided with 20 percent of the best partners. Quality of partners is much more important than their quantity. This fact must always be borne in mind when developing a strategy for promoting affiliate programs and building relationships with affiliates.

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This entry was posted on Thursday, December 24th, 2009 at 4:18 pm and is filed under Make Money. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.