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Recruiting Affiliates for Your Affiliate Program
by Thom Schlip
There are many ways to recruit affiliates for your
program. You can purchase advertising space, you can list your program on
affiliate directory sites, you can dedicate an area of your own site to
recruiting affiliates, you can purchase mailing lists, you can surf
targeted categories, use an email campaign and you can implement a 2-tier
referral program. Affiliate directory sites offer a very targeted audience
to promote your affiliate program. These sites act as guides to affiliates
that are looking for quality programs to apply to. You should submit your
affiliate program to every directory site. There are about 40 top
directory sites and most of them do not charge to list your program. You
can also use these sites as a reference for yourself, because you can find
a break down of your competition by category. So if you're selling books,
you can see exactly who else is selling books using an affiliate program
and exactly what they pay affiliates.
Advertising on directory sites offers increased
exposure as well. Find some quality sites that will really work with you
to promote your program. They're out there and they know the industry.
They can provide you not only with ad space, but offer a wealth of
information and support to you. Try to secure ad space through a
combination of a flat rate/revenue share or cpm/revenue share. Advertise
on the sites and in their newsletters. Remember in a revenue sharing
relationship, your success is also their success!
A company that has an affiliate program should have a
separate area of their site specifically dedicated to this subject with a
link that is accessible from their main page. This page should include
information on your program, an application form, service agreement, an
FAQ's page, A sample of links you provide, an example of one of your best
affiliate sites and some merchandising tips. Any advertising you do,
whether paid or through revenue sharing should be linked directly to this
page. If you're not willing to host an affiliate sign up page from your
site, you shouldn't even consider having an affiliate program.
Purchasing an opt-in email list is also a great way to
recruit affiliates. There are companies who provide a database of
affiliates who are looking to join new programs like yours and this is a
great way to capture their attention, because the focus is totally on you
and your program. Many directory sites have a mailing list available as
well.
You can also recruit affiliates yourself by doing some
online surfing. You can find potential affiliate partners by surfing
categories of items that you sell. You can also take a look at who is
linked to your competition using a neat little trick at Alta Vista. Go to
the Alta Vista site at http://www.altavista.com and
use their search key. Type in link:www.mycompetition.com. Make sure you
type in the word link: and then just add your competition. The results
will show you exactly who is linked to your competition. Many of these
could be potential affiliates for your program. After you've found some
potential partners, send them a personalized email telling them why you
chose them and what you have to offer or pick up the phone and chat with
them Many companies use this approach very successfully. Be careful when
using email marketing not to cross the SPAM border.
A 2-tier program can be the most productive and
cost-effective way to increase your affiliate sales base. A 2-tier program
offers a second commission schedule for your current affiliates to recruit
other sales partners for you.
Let's look at an example. ABC.com offers a 20%
commission on all sales and pays a 2% commission for recruiting
affiliates. The 2% is based on sales of the affiliates recruited. For
example, say an affiliate refers 10 other affiliates to your program, and
each makes a $100 a month in sales. You've just increased your sales
revenue by $1000. Now come the payouts. 20% of the $1000, equaling $200
goes to the 2nd level affiliates who actually made the sales. $20 goes to
the 1st level affiliate who referred these sales producers to you. So
you've increased your sales revenue by $1000 and paid out $220 in total
commissions, and you've done it all without any up front costs.
Up to 50% of your affiliates can come through a 2-tier
program. Think about it, if you have good salespeople and they know other
good salespeople they can recommend, your program has a better chance of
being successful. You can find a variety of 2-tier programs at http://www.2-tier.com .
Again, take a look at what your competition is doing.
Whatever avenue you use in promoting your affiliate
program make sure you track it so you see the results and try to revenue
share as much as possible!
Thom Schlip is the CEO of PlugInGo.com, a leading
affiliate program provider, specializing in small and medium size
businesses.
For
more information on PlugInGo.com, visit the website at: http://www.plugingo.com/ |