Wednesday, October 3, 2007

7 cosmic steps to creating your own affiliate program

Here is an idea that is not being discussed as much as I think it should be. Most Internet Marketers are happy to promote existing affiliate programs instead of creating their own. Why reinvent the wheel? Because the rewards are much more lucrative this way. The facts look like this. It is possible to increase site revenue and site traffic by a significant amount if you start your own associate or affiliate program. In order to do this you will need to choose or develop your software, decide how and how much to pay in commissions and set up jv partners with associate agreements.

You will need to write effective ad copy and be able to track accurately all activity on your program when it is available for use. Then you will have to figure out how to provide excellent reporting data to your associates.

To be successful at this you will need to research existing affiliate networks in order to understand how they work. It will also help at this point if you decide that this is the best outlet for your marketing skills. You will have to decide what your target market will be, get out the word about the opportunity, and be able to manage the payment and selection of your affiliate sites. You will have to consider outsourcing opportunities, what products you will offer and business models for your products. This is a lot of work, but keep your eye on the reward. Just ask any Yahoo executive.

If you have come this far, then you will probably be asking yourself if you should create an affiliate program. However, if you have done your research, and you understand the basics , you will want to evaluate whether it will be a worthwhile investment to have one. This means you need to find a demand for your program, find enough money and staff to help you get it up and running and of course, your return on investment.

There are quite a few different types of programs out there, with different commission structures that you will have to understand before you can launch one of your own. Just keep in mind that it is an excellent way to boost revenue, increase your market reach and find new partners.

There are two main ways to implement an affiliate program. You can outsource by joining and affiliate network or you can go the independent route. If you have enough money, any of the large affiliate networks , such as commission junction or linkshare can handle the basic development and implementation of your program. Those of us with smaller budgets will probably opt to do the development in house. I think the independent route is the best .

Going the Independent route means you will be developing the entire program yourself. You will get to decide which off your product offering s will be included in the program and choosing a program model. Drafting legal agreements and figuring out which type of criteria for membership is acceptable will be an important at this time. Doing research to discover what other programs already exist in this space and what your target market will be looking for is important here.

We are getting close to launch time now. Here's how it works. The associate program has been developed and now we want to know what types of affiliate sites to target. Then the marketing plan has to be figured out to attract your relevant target market. The network applicants websites will be visited to determine the level of appropriateness for inclusion in the network. At this time the links and graphics will need to be disseminated so the members will be able to promote the network.

Now comes the payoff. If the associate program is rewarding enough and it has been marketed properly, you should have a number of sites and links to track fairly quickly. Dependable tracking methods such as webtrends, will ensure accurate measurement of each affiliates website effects on your sales and traffic. There are also affiliate management software solutions available to help you with this.

Paying timely commissions and having good administrative and technical assistance when needed will keep your affiliates producing and happy. So there you have it. Start developing your program today.

No comments: