How To Start An Affiliate Program With Success Rate In 2021?
- 1 4 Most Important Marketing Hacks For Starting An Affiliate Program
- 2 Necessary Stuff To Start An Affiliate Program” & Stand It Out!
- 3 CPA Vs. CPL Vs. CPM
- 4 Challenging Part To Start An Affiliate Program:
- 5 What Is Best Running An Affiliate Program Or Working With A Network?
- 6 Advantages And Disadvantages Of Dealing With The Affiliates On Your Own:
For small businesses to start an affiliate program is a quite profitable and successful venture.
The very first reason it does not involve many risks. You pay when the results are obtained/received.
When running/starting an affiliate marketing program, you pay a referral fee for lead/sales generation to your affiliates/ affiliate partners.
It is also common to refer to it as partnership marketing.
This is the program that you use to partner with others who are helping you with selling your services/products.
To start an affiliate program is quite easy nowadays.
Many marketers are ready to run/start an affiliate program that pays the highest paycheck. Well, it’s not wrong to think this way.
However, considering it, some sort of magic formula that can make you rich overnight is the real deal-breaker.
Affiliate marketing is not a one-night making a multi-billionaire scheme.
It is a little more complicated plan that needs strategies somewhat just mere luck or some quick marketing hacks.
In actual sense, affiliate marketing for the long term means good marketing practices that ask you dedication and hard work.
This industry has four players into play:
It is not mandatory that all these four players take part simultaneously.
Some brands have their own affiliate program, and they directly deal with their affiliates.
However, the market also has different networks that manage affiliates.
The chances are that this whole model seems too simple.
However, its successful execution can be a real challenging task, even for the most experienced players if the right steps are not in place.
Well, we are not saying that you have to become a vampire to run/start an affiliate program (pun intended 😉 ). Having a few legitimate tactics can make your venture successful.
We are going to reveal 4 of these marketing hacks here.
Well, these are not the only hacks but surely the proven ones to have a better survival rate in the affiliate marketing world.
4 Most Important Marketing Hacks For Starting An Affiliate Program
i. Say No to Compromise On Quality
- To start a successful affiliate marketing program is not only about having high commissions for your partners.
- It is crucial to have a product that can have high conversions.
- High converting product means that quality has to be top-notch. It is the only sure way to beat your competition.
- Try to target an audience that is relevant to your product.
- Remember you cannot sell one product to every individual no matter how great or revolutionary your product is.
- Thus, have a narrow focus.
- Design or make your product while keeping your audience in mind so the relevancy factor can increase.
- You can design/ launch something that can add real value.
- For having a better UX, it is vital to have an easy to navigate and user-friendly website.
- For cutting cost on web hosting or due to lack of creativity/ technicalities, do not compromise on UX of your site.
- Have a website design that…
- Focuses on every product properly
- Have appropriate product reviews (visitors can easily reach them)
- Add testimonials of genuine customers; Make sure people agree to add their names, testimonials, and details on your website for marketing purposes
- You can add relevant niche content that can increase knowledge of your visitors
iv. Offer Free Stuff
- Not every visitor that visits your site is going to be your client.
- It does not mean you cannot increase your website engagement or conversion rates.
- The best way is to offer valuable/ helpful FREE stuff.
- This free stuff can be anything that resonates with your services or products.
Necessary Stuff To Start An Affiliate Program” & Stand It Out!
- Thousands of Affiliate programs are present today online.
- Thus, it should be your primary task to make your affiliate program attention-grabbing and something that the professional affiliate marketers want to join willingly.
- Once you are done with that, you are certainly heading in the right direction with your program campaign.
Tips To Improve It Even Further:
- Stick to one niche at a time, do proper niche research.
- Don’t even think about venturing something that you have no idea!
Look For Right Partners:
- Find the right niche partners.
- This means to locate websites and affiliate marketers that already have the audience of your niche.
- Have a plan or program that can be a win-win situation for both you and your affiliate partners.
Facilitate Your Program Members:
- Facilitating your partners with excellent and creative promotional material is also a great opportunity.
- Try to make their marketing and promotion activities as easy as possible from your end.
- The lesser efforts they need to put in and still have better conversions will automatically convince them to promote your stuff more actively.
Expand Your Team Of Partners:
- Increasing your affiliate partners should be a natural process.
- Don’t just settle as soon as you have got some partners.
- It is business; you never know when they leave your program and join another similar or better plan.
- Play save and keep adding more affiliates.
Communication Is Mandatory:
- Care about your partners.
- Communicate and learn about their opinions, feedback, and suggestions.
- Give tips, ideas, and valuable advice on how they can improve the marketing of your products/services.
Be Punctual In Payments:
- Have a good track record of paying the commission/referral fee on time.
- It can really make or break your relation with your program partners in the long run.
99.99% times success can never be an overnight story.
So, your affiliate program success will take time too. Affiliate program success pays off well so you can put your hard work and efforts and know that it will turn out well.
CPA Vs. CPL Vs. CPM
Look at the whole scene this way!
If you are running an affiliate marketing program:
- Your program is your product, and here your affiliates are the customers
- No matter how high the commission percentage is, the affiliates are always eager to get the best deal.
- For brands, CPL (cost per lead) and CPA (cost per action) are good risk-free options.
- However, for the affiliates, the situation is not much ideal because CPA and CPL are performance-based. Affiliates much prefer CPM (cost per mile/ cost per thousand).
- Affiliates can easily earn revenue by just counting impressions rather concerning sales or leads.
- Every conversion funnel has impressions, the lesser leads, and the least sales.
- Here come your negotiating skills and convincing power through which you have to convince affiliates to go with your plans and not with the impression count model of revenue.
- Moreover, watching CPA and CPL of competitors should be part of your competition analyses.
Challenging Part To Start An Affiliate Program:
Every marketing program has its own challenges and hurdles. Affiliate marketing programs come with theirs.
Some Challenges Start An Affiliate Program:
Getting Valuable Affiliates:
Anyone can set an affiliate program but getting quality affiliates who believe in your program and promote is the really challenging task.
Affiliates will only consider programs and services that they trust, so having a strong bonding or good business relationship is a must.
There have been frauds/ scams/ failed affiliate programs in the industry.
Therefore, experienced affiliates usually work with the chosen programs that they can trust.
Remembers having the right affiliates can actually make your program a success or a disaster.
Having an advanced mechanism and tracking is a must.
Moreover, this technology or system that you have should be easy to use.
If this is not the case, your affiliate might not waste their time on your program.
Running an affiliate program is not a 100% passive business at least at the initial stages.
If you have a team to look after things, this might not be the case.
However, if you are doing it on a small scale, you have to invest proper time in it.
Most Of The Time Will Be Spent On
- Resolving problems
- Recruiting new affiliates
- Managing necessary operation to keep the program steady
- Most importantly keeping your affiliates happy
Have Clear And Straight Business Policies:
From day one, be clear about your policies and tactics to avoid any future conflicts.
For example: If you are not okay with them using your branded terms to rank their marketing promotions, tell them in the very beginning.
Underestimating Mandatory Skills:
Brands fail because they tend to underestimate the power of persuasion and negotiation.
A brand should know or at least should have someone who can convince affiliates that they can earn better via CPA instead of CPM.
Having an effective reward system is crucial.
Reward your affiliates as per their performance to keep them motivated and stay connected.
What Is Best Running An Affiliate Program Or Working With A Network?
No one answer can fit this question. It mostly depends on some other questions like…
- Do you need proper reporting?
- Is it the 1st time you are looking for affiliates?
- Do you require a tracking system/technology?
- Do you have no prior experience regarding commission rates or other relevant stuff?
If your answers are “Yes” to all or most of the questions, you should go with the option of working with the affiliate network.
However, if you still want to try, the next section of the article will be for you.
You May Also Like: Niche Marketing Myths
Advantages And Disadvantages Of Dealing With The Affiliates On Your Own:
Networks charge you a commission.
Thus, not only you pay to affiliates, but also your profit gets shrunken because you have to give a percentage to networks.
Knowing Of Product:
You know your product well, but networks are not much aware of it so they can never understand the customer as you do.
At times, you might offer time-sensitive offers, and in those situations, saving time can be crucial, and speedy marketing is the need.
Involving a network can cause a delay in this process.
You have complete control over your program, and you can manage things properly.
Networks/ agencies measure weekly/ monthly/ yearly reports, but if the whole process is in-house, you have to do things, and it can be time-consuming.
Networks can be handy.
Firstly, they can give you instant excess to thousands of affiliates, but when you are dealing with things in-house, recruitment is nothing but time-consuming.
Networks deal payments/ commissions and invoicing, but when the things are in-house, you have the complete responsibility of the process.
When you are running things in-house, you have to have an eye on affiliates that they promote products/brands with ethics.
In short, you have to monitor appropriately.
Lack Of Experience:
Running things or Start An Affiliate Program for the first time might get you into situations that need nothing but a bit of experience.
You can resolve those issues, but time consumption is there.
Therefore, if you need a time-saving process, running program in-house will do it another way around.
Start an affiliate program while keeping these points in mind.
We don’t claim it to be the ultimate guide for starting your affiliate program.
However, it will certainly give you some leverage if this is the first time you are going to managing things.
Do remember, it is not a type of business model that you can start and then just a stream of money will start pouring out but instead it is much a try and test kind of model where you experiment different stuff to find the best system possible.
Best of luck with your Journey.