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No matter what business you are in, the largest investment you make will be
customer acquisition. If you have your own product, and have acquired a base
of satisfied customers, then single product affiliate programs could work very
well for you. However, if your business is acquiring customers for other
businesses, that is, purely affiliate programs, then a better choice for you
could be affiliate programs with multiple products or services. This will help
you to capitalise on your investment in customer acquisition.
The key to choosing successfully is to ensure that the affiliate program
offers products that meet the needs of your potential customers. Coupled with
this is the need for the products to be high quality and for the supplier to
provide excellent customer service. Remember, your credibility is on the line
every time you refer someone to buy through your affiliate relationship.
Some of the other factors I consider when evaluating affiliate programs
include:
+ Is the affiliate program a reputable business? You can check out a business
you are considering a relationship with in variety of ways. Talk to the Better
Business Bureau in your local area or a similar body. In addition, I find web
sites that monitor affiliate programs to be worth looking at. The best I have
found is Associate Programs http://www.AssociatePrograms.com. Allan Gardyne
pulls no punches and tells it as it is.
+ Does the program enable you to share in the lifetime value of the customer?
Great programs will give you commissions on all future purchases of the
customers you introduce. This is where the real profits are. These types of
programs, in effect, allow you to partner with the supplier.
+ Does the program reward you for introducing other affiliates? This type of
program is commonly referred to as a two-tier program. Often your customer may
become an affiliate also and you will be rewarded for this.
+ Is the supplier interested in your success as an affiliate? The top
affiliate programs engage in a process of coaching or information sharing to
help you succeed. Affiliates are provided with regular newsletters outlining
what is working for successful affiliates and providing updates and details on
new products.
+ Is the commission reasonable? Commission rates on commodity products such as
books and CDs are low. This is because there is very little margin in the
products due to competition. Look for products that have a commission rate of
15% or more that are not commodities - that way you will be better able to
recoup your customer acquisition investment.
+ Are statistics provided? The higher the level of statistics provided, the
better off you are. This will enable you to measure the success of your
marketing efforts and to determine the best places to invest your marketing
dollars. Insufficient statistics is a sign that the affiliate program is not
sufficiently interested in your success.
+ Are new products being developed regularly? To get the full value from
lifetime commissions, new products need to be introduced on a regular basis.
Without this, lifetime commissions can be worthless. Also, look for consistent
high quality in new products introduced.
+ How frequently are commissions paid? The more frequently commissions are
paid, the better off you are. Good quality affiliate programs will pay you
monthly. In some situations, commissions are not paid until a certain level is
reached. If the program you are considering has this requirement, check how
many sales need to be made before the level is reached.
+ Have you read the affiliate agreement? This is a key area that you should
look at. Some affiliate agreements are totally in favour of the supplier.
Others are more balanced. Some agreements restrict your ability to promote
similar products from other suppliers. Most agreements have anti-spam
provisions. Look for agreements that are fair and that do not stack everything
against you as the affiliate.
While there are other factors that can be considered when choosing an
affiliate program, following the suggestions above will help you to make
superior business choices that will lead to long-term success.
About Author:
Article by Kevin Sinclair, CPA, of Personal & Business Success Resources.
Visit his website at http://www.business.ksinclair.com/ .
Article Source: http://www.BharatBhasha.com
Article Url: http://www.bharatbhasha.com/affiliate-programs.php/41445
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