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Last week we talked about how you, as a merchant, could set up an affiliate
program to bring in more leads and hits to your site, thereby increasing your
sales. This week, I'd like to look at affiliate programs from the flip side, and
analyze how you, as an affiliate, can use other merchant programs to increase
your monthly revenue. These programs are a viable way to generate income for
your site, but there are four basic steps you should take in order to insure
that you reap the most income for your efforts.
Make Sure You're Compatible
As in any business relationship, it's important that the program you choose will
enhance your site's image and credibility. For instance, if you run a financial
site, you'd want to look at merchant programs like Compubank, Nextcard, and
LendingTree. All of these merchants would probably fit into your
profile, and
are sites that your customers may truly be interested in. However, if you posted
a banner ad for a dating service, you'd not only be wasting your time, but you'd
hurt your credibility as well.
Make Sure You're Paid Enough
If there ever was a time to be choosy, it's when you're evaluating the various
commission plans. The plans are as varied as there are sites on the Internet,
and which one you choose will determine whether or not a program will just cost
you time, or bring in a decent amount of income. For instance, some affiliates,
like Amazon.com, pays 15% for every sale resulting from your site, but others,
like LendingTree, pays a flat commission (in this case, $14.00), for every
qualified application resulting from your site. Some straight commissions are
5%, while others are a whopping 25%.
After you've narrowed down your search to a few programs, it's time to negotiate.
The program rates aren't set in stone, in fact, there is usually a lot of leeway.
If your site gets a lot of visitors every month, use that to negotiate a higher
payout from the merchants.
Make Sure You Don't Overload
Another key point and negotiating factor is the number of programs you plan to
sponsor on your site. By having too many programs, you'll decrease the feel of
your site and lose credibility for you and your merchants. You should select
only a few programs, and then work hard to promote them. Also, when you're
negotiating for the best payout rate, tell the merchants that they'll be one of
only a few displayed on your site, and they'll be more likely to negotiate.
Make Sure you Stand Behind Them
We've talked about credibility a lot in this column, and we know that
it's a
major factor in a site's success. The same holds true for affiliate programs.
Pick only the merchants that you can truly stand behind, and then tell your
customers about your experience in dealing with them. (Be sure to test them
yourself.) Estimates vary wildly, but most experts agree that if the
site's
owner can give a personal referral, the click-through rate improves dramatically.
Make Sure Your Income Keeps Up
Once you start earning good, consistent commission checks every month, it's time
to re-negotiate. The merchants are making money from your leads, and they're
more likely pay you a higher rate to keep those leads coming in, rather than
risk losing your business to a higher paying merchant.
Remember, affiliate programs, if managed correctly, can improve your
site's
image and increase your monthly income. The key is to choose your programs
wisely, negotiate the best possible commissions, promote your
partners, and you
should soon be collecting fat commission checks every month.
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