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Home::Online Promotion
Using Affiliate Programs to Supercharge an Online Business
Author : Jim McCabe
Recently while surfing the internet, I came across a very
interesting website that teaches people how to setup on online
business. One aspect to increase sales is to establish an
affiliation program.
An "affiliation" is a relationship (an agreement) between two
parties in which one party sells the products or services of the
other in exchange for a commission. A good affiliation program,
even with a competitor, can supercharge online sales. The
product owner wins with additional sales and the affiliate wins
by receiving a commission.
The affiliate does not have to create or transport the product
that is sold, or even collect the money. This is all provided by
the owner of the product. This is a huge advantage for the
affiliate because startup costs are low. The beginning affiliate
only needs to primarily focus on product promotion. In many
case, the owner even supplies the affiliate with marketing
information.
For sale of goods over the internet, the affiliate provides a
URL hyperlink for the customer to click on. This hyperlink links
to the website of the owner of the product and has a special
code so that the affiliate will get credited when the sale goes
through. The credit can range from 1 to 50 percent (or higher)
commission, depending on the affiliation agreement.
Some ways for an affiliate to increase sales include:
1) Offer something for free in exchange for the email address.
People love to get free stuff and if they like what they get,
they may reciprocate at a later time with a purchase.
2) Capture the email addresses to an "opt-in" list. From that
list, send repeated emails to increase product awareness and to
eventually trigger sales.
3) Market unique products with unique web sites. This provides
product focus.
4) Include testimonials from real customers. (Be sure to get the
customer's permission first.)
Advantages for the affiliate include:
1) Low startup costs. The other party develops and produces the
product.
2) No inventory. The other party manages that.
3) No handling of the product. The other party transfers the
product to the customer.
4) No order processing. The other party sets up the merchant
accounts and collects the customer's money.
5) No shipping costs. The other party gets the product to the
customer.
6) No downstream warranty costs. The other party handles all
customer commitments.
7) If the product doesn't sell, dump it and move to something
else.
The main advantage for the producer (the other party in the
affiliation relationship) is increased sales through increased
product exposure.
An properly implemented affiliation program really is a win-win
for both the producer and the affiliate.
Jim McCabe
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