There has been plenty of news regarding affiliate marketing and many have hailed its benefits in recent years
There has been plenty of news regarding affiliate marketing and many have hailed its benefits in recent years. But how truly effective is it? And how can a new affiliate member use available resources in order to maximize success and minimize failure? Here, we take a look at what it would take to make it with affiliate programs.
Understanding Affiliate Programs
The key to succeeding in affiliate programs is to truly understand how this industry works. Affiliate programs are built on affiliate marketing concepts. This type of marketing refers to the method used in the promotion of businesses, particularly web-based enterprises. An affiliate program operates simply. An affiliate (sometimes referred to as the publisher) joins an affiliate program in which he will be paid to promote products and/or services exclusive to that program. The affiliate will be compensated for every sale, customer, visitor or subscriber he attracts.
Due to the nature of this business, most affiliate programs are run online, particularly because it is the most efficient and cost-effective means to promote products and earn money at the same time.
Succeeding in Affiliate Programs
If you expect to make serious money with online sales, there are a few key items to consider when joining any affiliate program. They are:
1. An established or reliable affiliate company: Although there are many new affiliate programs available today, it is always best to go with well-established affiliate companies. For one, there’s the advantage of name recognition, whose benefit you will be able to appreciate when attracting your market. There is also the assurance that you will be dealing with a company you can rely on.
2. A feasible product: The product you will be promoting through the affiliate program is the key to your success. Solid business acumen can do little to sell a product that has no value or market. Try to do some research on the product or service you will be selling. Understanding how useful it is and how well it will fit the needs of your market will make a huge difference in how well your affiliate program will fare.
3. A high-traffic website: There is money in traffic. Otherwise, how else can people find the platform with which to do business with you? Put effort and if necessary, money into creating a website that will host your affiliate program. And then work overtime to build traffic. Advertise if you have to, build links and promote your program, even if it is already well-known. Remember that there are dozens, even hundreds or thousands of other websites out there that probably belong to the same affiliate program as yours.
Having multiple websites can also raise your chances of success in affiliate marketing. Most affiliates prefer this route because it opens up plenty of opportunities for potential subscribers and customers to learn about their program.
4. A real market: The availability of the market and their willingness to buy or participate in the program is also an important consideration. Many a product has been launched in the past that failed miserably because the market just wasn’t around.
5. An effective compensation scheme: Try to translate your efforts into figures. Wouldn’t you rather be paid $1 for every subscriber you find than 60 cents for every five you attract? Don’t waste time on affiliate programs that offer peanuts for your business. Look for affiliate programs that give high commissions. Depending on which program you join, you could expect from as little as 30% to 70%.
What are the chances of success in affiliate programs?
If you look at the figures reported from affiliate marketing programs; over $6 billion in commissions in 2006 alone, nearly twice the figure during the past year, you probably would think twice about not joining. There is a variety of products covered by these programs, from retail to gaming to telecoms and publishing to personal finance and education.
The unique characteristic of an affiliate program is that as an affiliate, you will get paid for your performance. There is little to no capital expense involved and the generally, the harder you work, the more you’ll earn. However, success and failure in affiliate programs will depend on the type of choices you make after much consideration of the factors involved in this business. It will also help if you treat your affiliate program as a business, which means it will require a lot of work, maintenance and follow up. This is a growing industry and highly competitive. To survive, you don’t only have to be noticed by your market, you have to be trusted as well.
