The success of an affiliate marketing strategy depends on how many referrals you’re able to send to merchant sites and how well these referrals convert (hence the bolding of these factors above). The more relevant and appealing the offers you highlight on your site, the higher both your click and conversion rates will likely be. If you’re running a travel blog, you probably don’t want to be featuring affiliate offers for baby products; replacing them with affiliate links to cruise packages would probably result in a higher referral rate.
You need to work with your affiliates closely especially in the beginning to ensure that they’re successful. By giving them the right tools to succeed, you can generate more revenue for your business. You might have affiliate newsletters, competitions, and a leaderboard so that your affiliates can get excited to promote your brand. It also gives the social proof that success is possible. Affiliate programs are not for the faint of heart. This isn’t a set it and forget it model. You need to stay in touch with your affiliates to make sure they keep reaching their financial goals through your program.
Most businesses require startup fees as well as a cash flow to finance the products being sold. However, affiliate marketing can be done at a low cost, meaning you can get started quickly and without much hassle. There are no affiliate program fees to worry about and no need to create a product. Beginning this line of work is relatively straightforward.
Most affiliate networks are known to have various payout models but the two most popular ones are Cost-Per-Sale and Cost-Per-Action. The former payout model usually pays a particular commission to an affiliate marketer after they refer a lead which converts to a sale. Most marketers like this model because they will only pay a small percentage after they are paid by the buying customer. Cost-Per-Action, on the other hand, pays affiliates after a specific action has been taken by the lead or referral. This payout model does not necessarily entail a direct sale and some of the most popular actions include opt-ins, registrations, sign-ups, impressions, form submissions or clicks.
The easiest thing to do is to sign up for an affiliate marketing network like Commission Junction. They provide a marketplace where your affiliate program will be advertised to other affiliate marketers. They also provide the tracking software for your affiliates so you don’t have to build your own tracking system. In some ways this is better because it takes care of the trust issues. Affiliates are always suspicious of whether or not they’re getting credited for the sales they generate. By having an intermediary take care of transaction tracking and payments, the fear of being cheated is alleviated.
Previously Buy.com, this is yet another huge affiliate network for e-commerce and which mostly focuses on physical products. While this network is relatively smaller compared to some of its rivals in the business with close to 1,000 partners, they are among the oldest affiliate programs and are fully dedicated to premium technology. This network offers hundreds of creative and as such, optimizing sales becomes easier through the use of technology like flexible linking options and rotating ads. This network deals with more than 90,000 products from close to 38,000 shop owners and has a staggering 18 million customers.
Thanks for a nice job. I am currently promoting some of the affiliate programs listed here and making a few dollars from them. But I must say that making money from affiliate programs is not rocket science; it requires hard work and perseverance. Affiliate marketing keeps evolving daily and any serious affiliate should be ready to change tactics and invest time and money in order to beat the competition.