Log-in:
Download Software
A savvy helpdesk software
|
 |
 |
|
|
What is an Affiliate Program?
An affiliate program - also known as an Associate Program - is an
increasingly popular form of online marketing, in which a website that
refers business to your website is paid a small commission. Referrals are
steered to your site via a specially coded banner or link, which appears on
sites that have agreed to send business your way.
The marketing concept has captured the imagination of marketers, because it
represents an unrivaled opportunity to base advertising on a
pay-per-performance model. Instead of paying advertisers and "hoping for the
best," merchants using affiliate marketing programs pay only when
advertising results in an actual sale.
In a phrase, affiliate marketing is single-handedly redefining the way
advertising is done.
As you might imagine, many merchants see this new paradigm as a license to
print money, and have devoted a great deal of effort to sign-up as many
affiliates as possible. Indeed, in many cases, merchants with successful
affiliate marketing programs boast hundreds - if not thousands - of
affiliate websites, which continually feed them potential customers on a
daily basis.
Moreover, the concept has also given rise to a new brand of entrepreneur:
the power affiliate. Such referral websites have become extremely adept at
attracting high quality traffic representing true sales potential to their
own sites, and then spiriting that traffic along to the appropriate
merchants. In many cases, these power affiliates have created entire
careers and businesses for themselves, simply with their ability to deliver
high quality traffic on a regular basis.
With the AffPlanet service, you'll be able to offer a full-featured
affiliate marketing program on your own site. Hosted on our servers as a turn-key solution, the service does not
require any software for you to download, or any installation details to
fret over.
Instead, AffPlanet will handle all the program management details for you,
including:
- Processing of new affiliate sign-ups
- Tracking of all traffic and sales referred to your website
- Calculating commission totals for every affiliate
- Automating the payment of commissions to all your affiliates
Plus, the AffPlanet service also offers you the flexibility to
pick-and-choose among a number of commission structures. You'll find that
flexibility extremely valuable, since the "right" commission structure or
structures for your business is a key criteria that power affiliates use in
deciding whether or not to join an affiliate program.
No matter what commission structure you choose, you'll have the peace of
mind knowing you can rely on AffPlanet to correctly sort out who gets paid,
and how much they get paid. And you'll know that AffPlanet will be doing
this for you flawlessly, each and every day.
The service achieves this reliability by placing a snippet of individualized
code in every banner and link that is posted by an affiliate. Essentially,
any time a visitor clicks on this coded banner or link - whether it's on an
affiliate's website, in an e-newsletter, or included in some other form of
email - AffPlanet automatically identifies the source of the click, and
attributes it to the appropriate affiliate.
Even if the referred visitor makes a purchase days or months later,
AffPlanet "remembers" click's source, and rewards the appropriate
affiliate.
Obviously, you'll want to carefully evaluate the full spectrum of AffPlanet
commission structures - also known as campaigns -- before choosing the
structures that will work best for your business. Here's detail on each:
Campaign Types
Payouts (commission types) are together with the quality of your products/services and trustability of your website and company
the most most significant factor evaluated by affiliates when choosing whether to join your affiliate program and promote your products.
Therefore, it is important to consider which types of payouts you will be offering when developing an affiliate program.
There are basically three payment structures to consider for an affiliate program – Pay Per Click, Pay Per Lead and Pay Per Sale.
Except these three there are also additional types like CPM (payment for thousand banner impressions displayed), payment Per Referral of new affiliates.
CPM (cost per thousand impressions)
This is a reward that pays affiliates a commission for every one thousand
banner/link impressions they generate. Under this structure, affiliates
only have to refer traffic - they don't have to generate sales from that
traffic. Some merchants offer this commission structure in combination with
other types of commissions to ensure their affiliates remain enthused about
their affiliate program.
Per Click
Also known as Pay Per Click (PPC) or Cost Per Click (CPC), this is a
commission affiliates receive every time a visitor clicks through to your
website via a banner or link. Per Click fees are usually quite low, since
the clicks by potential customers do not need to result in a sale. Depending
on an affiliate's click-through-ratio (CTR), commissions generally range
between $0.02 and $1.00.
An added bonus: AffPlanet enables you to create your own, custom Pay Per
Click campaigns, as well as Pay Per Click campaigns similar to those used by
Google AdWords and Overture (Yahoo Marketing).
Per Sale
Also called revenue sharing, a Per Sale commission offers affiliates a fixed
percentage of a sale when a referred visitor actually makes a purchase.
Such commissions, which are tracked by AffPlanet via cookies, IP tracking,
or PHP sessions, generally range between 5%-60%.
Per Lead
Similar to a Per Sale commission, Per Lead commissions reward affiliates for
leads that feature detailed contact information from potential customers.
Per Lead is often used to reward affiliates for referring new affiliate
website to an affiliate program. Other uses include rewards for sign-ups
for services offered at a website, and rewards for sign-ups for more
information on big ticket sales.
In practice, Per Lead rewards are generally linked to forms, which pop up on
an affiliate's website when a potential customer clicks on an advertisement
there. Each time a completed form is sent to you, the referring affiliate
site is paid a fee. This commission is usually a flat rate, although some
businesses do offer a percentage of a lead's value.
Recurring Support
Websites offering recurring subscriptions and/or services often offer a
Recurring Support commission to their affiliates. For example: if your
website sells a service with a recurring charge, such as a subscription for
content or a monthly web hosting plan, your affiliate websites are given a
recurring commission each time a customer makes a recurring payment under
this scenario.
Sign-Up Bonus
Merchants use this commission to aggressively promote the spread of their
affiliate program across the Web. Under this plan, existing affiliates who
are successful in signing up other websites for your affiliate program are
given a small fee.
Sign-Up Referral Commission
Some merchants looking to add as many affiliates as possible often use a
tiered commission structure as a reward to existing affiliates. With this
design, an existing affiliate gets a small percentage of every sale that is
generated by a new affiliate that he or she signed up for your program.
Many merchants prefer the tiered system, since they are not required to pay
for sign-ups of new affiliates until those newcomers actually begin
generating sales.
Tiered systems can become quite complex, and some merchants offer a number
of reward tiers to encourage even more new affiliate sign-ups. Under such
plans, an existing (parent) affiliate gets a percentage of sales from any
new affiliate (child) he or she signs up - plus a percentage of sales from
any affiliates that affiliate (child's child) signs up, and so on. In rare
cases, such programs feature as many as ten tiers.
Tracking
In addition to offering a wide spectrum of commission structures, AffPlanet
also offers merchants robust tracking capabilities. Using the service, you'
ll instantly be able to see how many visitors your affiliate program is
generating on a daily basis. More importantly, you'll also be able to
quickly identify which of your affiliates are referring the clicks that are
actually generating sales.
With such insights, you'll be able to quickly identify your top performing
affiliate websites, and reward and nurture those sites accordingly.
All told, the AffPlanet service offers you a way to "hit the ground
running" with an extremely powerful affiliate marketing program at a very
aggressive price.
|
|
 |