Affiliate
Marketing Program
Definition: A way for a company to sell its products by signing up individuals or companies ("affiliates") who market the company's products for a commission
There are two ways to approach affiliate
marketing program: You can offer an affiliate program to others or you can sign up to
be another business's affiliate marketing program. As the business driving an affiliate marketing program,
you'll pay your affiliates a commission fee for every lead or sale they drive
to your website. Your main goal should be to find affiliates who'll reach
untapped markets. For example, a company with an e-zine may make a good
affiliate because its subscribers are hungry for resources. So introducing your
offer through a "trusted" company can grab the attention of prospects
you might not have otherwise reached.
You should also make sure you aren't competing
with your own affiliates for eyeballs. Any marketing channels you're using,
such as search engines, content sites or e-mail lists, should be off limits to
your affiliates. Put marketing restrictions into your affiliate agreement and
notify partners immediately. It's your program--you set the rules. Or, if you
prefer, you can let your affiliates run the majority of your internet
marketing.
Once you've protected your prospecting pool,
maximize your affiliate marketing programs by working with the best and leaving the rest.
As the old 80/20 adage implies, most of your revenue will come from a very
small percentage of your affiliates. Because it can be time-consuming to manage
a larger affiliate network, consider selecting only a few companies initially,
and interview them before signing them on. Affiliates are an extension of your
sales force and represent your online brand, so choose partners carefully.
And
what about joining another company's affiliate marketing programs? It's all about extra
revenue. Think about your customers' needs: What other products or services
would interest your site visitors? Join those affiliate marketing programs. Affiliate
programs can increase your sales with no upfront cost to you. It just takes a
little time to plan your strategy and select the partners that will have the
greatest impact on your business.