Part 2: The 80/20 myth, good service and payments
What are the benefits to submitting your site to all the affiliate directories?
The affiliate directories offer one of a number of methods you should implement to promote your program and recruit new affiliate partners.
There are more than 40 such directories that provide a searchable database of affiliate programs available. These directories are very popular, some with loyal subscribers exceeding tens of thousands.
Each directory will list your program details free of charge and if a directory likes your program and features it editorially within their newsletter, then they will provide a great boost to your affiliate numbers.
To list your program with these directories you can simply enter their site and submit your details. Alternatively if you would rather not spend a day or two 'form filling' then my Affiliate Announce service will process your submissions on your behalf. I also have an article on how to increase your chances of a listing.
What is the truth about the 80/20 rule?
The 80/20 rule is really a bit of a myth. The ratio refers to the fact that 80% of sales are typically generated by the top 20% of your affiliates. From my experience and talking to other program managers I'd suggest the active affiliate rate is closer to between two and ten per cent.
This helps emphasize the fact that it's quality not quantity that counts when it comes to your affiliates.
And it "counts" to have a strong tracking system in regard to your affiliate programs?
A reliable tracking system is essential to enable both you and your partners to check your program's performance and commissions due. Your affiliates need to be assured that your tracking system is reliable. After all, they only get paid as long as you're correctly tracking click thru's and sales.
What are factors to identify when you are looking at a program or a site as as a potential affiliate?
If I'm looking at a program as a potential affiliate there are a number of factors I'll examine, including:
- The product, is it any good? Does it fit with my site's visitors' needs?
- Does your site do a good job of selling the product/service? If your site is apparently lacking in the ability to convert any of my hard won traffic, I'm not going to waste my efforts by referring them to a site that can't close the sale.
- Do your commission payments look profitable? What would be my estimated CPM equivalent?
- How long are your cookies (also known as 'return days') set for? This still pays a commission if a customer doesn't purchase on the first visit but shops around and comes back a few days later to make the purchase.
- How frequently do you pay? If you only pay quarterly, it might not prevent me joining your program but I'd much prefer monthly payments.
- What is your minimum amount due before you cut an affiliate check? The lower the better; making me wait until I have accumulated US$200 is too much!
Can you give us some good examples of strong programs?
There are some great programs out there. Examples include Clubmom. Their program manager, Shawn Collins (see our interview), offers excellent affiliate support and help. Shawn has created a real community amongst his affiliates.
The One and Only Network offers another very successful program. I know their top affiliates earn a considerable income through ongoing residual commissions.
And if our readers need more information, they can always find your eBook - what does it cover?
Solid, practical information as to how to set-up, promote and manage a program simply wasn't available. Every week my editorials would create a barrage of queries from webmasters trying to create a program and so I decided to write the 'Practical Guide' to answer their questions.
It actually took me a lot longer than expected to write the book but it looks as though the effort was worthwhile as customer response has been very positive. Free extracts from the book are available online.
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