What is an Affiliate Program?
An affiliate program is a mutually beneficial relationship between a website and a company (you). The company seeks to either generate more web traffic, sell more products, or seek out potential customers through leads. The website seeks to make a profit by sending traffic to the company and getting paid a percentage of successful transactions or lead submissions that are generated from that traffic referral. Affiliate programs come in many shapes and forms.
How does an Affiliate Program work?
An affiliate program advertising campaign offers a monetary incentive for webmasters to drive traffic to the advertiser’s website. This eliminates the necessity for the advertiser to find websites with related content to list their banners. It also increases the response rate by giving the “affiliate” websites a stake in the response rate. Affiliate programs are a great way for the companies offering them to increase their sales, sometimes dramatically. A “successful” affiliate program will generate around 30% of your total revenue, and you will often pay much less per sale then you would with Pay Per Click (PPC) advertising. Typical “commissions” paid are between 2%-10% of each sale that is proven, through link analytics, to originate from the registered affiliate’s website.
Why do you need an Affiliate Program?
An affiliate program is what we call a “Pay for Performance” online advertising model. Whereas with Pay Per Click (PPC) you are paying for each click even if the visitor doesn’t buy anything or submit their lead information, with an affiliate program you are paying only for a successful transaction. The monetary risk with an affiliate program is among the lowest out of all online advertising models.
An affiliate program dramatically extends your reach. Affiliates are most often owners of websites that are directly related to your market niche. Sometimes they run “comparison shopping engines” (think shopzilla.com) that have very high amounts of traffic. They take on all organic and paid advertising costs in the hopes that they do start to drive successful transactions and get paid appropriately.
Get Started Today
Sound appealing? It should because nearly every successful online retailer has some sort of affiliate program, and for good reason…it just makes sense! We have managed several affiliate programs, with one online retailer having generated over 300k per year through this exciting channel. We work with all the major Tier One affiliate networks such as Commission Junction, Google Affiliate Network and Linkshare. We have attended training at the Commission Junction CJU event in Santa Barbara, CA, and we are well-versed in affiliate program best known methods.
Let us help you evaluate this program for your business needs, and get you started right away! Click here to get started!