Online Affiliate Programs

Everyone wants the best online affiliate programs: how to evaluate what's on offer.

Setting Up Your Own Online Affiliate Programs

Affiliate solution providers offer an excellent way of selling products, but how do you find what's best for you?

Recall the principles. You want your products sold. Another company would be happy to sell your products on a commission basis. Affiliate solution providers bring the two parties together, charging a fee for the matchmaking, and for keeping tabs on sales.

And that's the beauty of the system. Traffic from other sites is redirected to yours, but you only pay commission on sales made, plus a share to the affiliate solution provider. Whatever the link type employed – and it may be a banner ad, a storefront, email or a simple text link – an embedded piece of code identifies the originating site, allowing automated records to be kept for inspection and settlement. Some large and very small outfits still run their own affiliation programs, but the majority of companies have handed over the task to an affiliate solution provider. Running your own affiliates program means you can:

• cut out the affiliate solution provider's share of the commission.

• set your own commission rates, which is commonly:

  • a percentage commission,

  • a flat fee, or

  • a combination of flat rate and commission.

• Set your own terms and conditions for payment:

  • dates when commissions are paid.

  • minimum to be reached before accrued commission is paid.

• decide how many tiers of commission you will pay.

• better control the affiliate site content:

  • ban adult and antisocial material.

  • exclude competitors.

  • limit participation in other affiliate programs.

• dictate affiliate site performance:

  • minimum traffic.

  • Minimum up time of your site.
• eliminate the affiliate directory charges, commonly a setup fee plus a monthly charge.

The disadvantages are equally obvious: you have to

• write or purchase the software needed to create links and track sales.

• maintain extensive records.

• handle queries and difficulties originating at the affiliate site.

Finding Online Affiliate Programs

Affiliate solution providers will generally provide the affiliate software required — to create links, store records of purchases, calculate commissions, allow commissions to be viewed, and to automatically send out payments. In general you'll have to check out the providers individually, to ensure that they do indeed offer the best affiliate programs for your business.

If you want to run your own affiliates, you must either write your own programs or buy something off the shelf. Our resources page provides a good listing of affiliate management programs available, and a more detailed treatment is found in our product comparison table. Here you will see what the best affiliate programs should cover.

Finding Suitable Affiliates

It's the job of affiliate solution providers to supply you with a list of suitable candidates, and these will have signed up to common terms and conditions. Making your own list is more problematical, but you can:

• research the rates, terms and conditions applying in your market sector.

• use search engine and directories to identify possible candidates.

• visit the websites of companies concerned to suitability.

• approach the companies with details of your products, traffic and trading history.

• negotiate an agreement.

What will you look for in an affiliate? Probably:

• a popular and professional-looking site that enhances your reputation.

• complementary interests: the site has to endorse products readers want or need.

• good customer service: sales may be clinched at your site, but the affiliate should engender a sense of community and trust – they answer faxes and emails promptly.

What will your affiliates be looking for? Much the same:

• a fair contract.

• quality products or services.

• free offers and/or newsletter.

• content sharing.

• in-depth information on your products and services.

• regular supply of market-tested copy that really sells.

• proper backup for your products.

• prompt payment of commissions.

• transparent accounting procedures: industry-standard software that allows them to sales and commissions.

Working with an Affiliate Solution Provider

Dozens of affiliate solution providers exist, some very small and covering only a narrow range of products. Terms and conditions will vary, but all employ an editor to check that your product(s) and company are suitable. Therefore do your homework first, noting in particular:

• client list. Ask for testimonials, and permission to approach clients.
  
  
• fees. Three sets of fees are usually levied: a setup or initiation fee, a monthly maintenance charge, and a commission on sales. All three vary widely, from nil in some categories to charges in the thousands of dollars per month. Find someone who won't break the bank if sales really take off.
  
  
• exclusivity. You are not generally tied to using the one affiliate solution provider, but check should you ever expect to complicate matters.
  
  
• tiers of commission. Affiliates will want to know if they can introduce others to your product and earn a share of the extra commission.
  
  
• specialization. Is the provider likely to find you the right sort of affiliate? Check their client list.
  
  
• setup details. Your affiliates will probably be given a few lines of code to simply paste into their websites, but again ask: anything complicated, involved programming expense, will not be popular.
  
  
• terms and conditions. Ensure you understand the regulations and can live with them. Your terms and conditions have to match those of the affiliate solution provider — e.g. you can't offer a "lifetime guarantee" if the provider limits the warrantee to 3 months.
  
  
• your site. The better providers can be choosy, so make sure your site is looking its best before applying. And get that product page up to scratch. It is to this page that affiliates will link, and the provider will go through its details with a fine toothcomb.

Payment Service Bureaus

Most payment service bureaus have referral and partnership schemes. Some merely pay you a commission for attracting new customers to their service or to products of their other customers. A few do provide something close to affiliate programs, however — either by finding you affiliates among their customers, or providing software to handle the affiliates you find yourself. The service bureau handles transactions in both cases, including commission payments.

Affiliate Solution Providers

Affiliate solution providers are widely listed on the web. Our resources page gives a good number of the larger directories. But since not all provide the online affiliate program of choice, you may wish to investigate sites providing advice and preferred listings.

Truth Behind the Hype

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