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What
is affiliate marketing?
Networks
How
do you get started in affiliate marketing?
How
to choose an affiliate program to promote?
Affiliate
Networks
Indies
or In-House affiliate programs
Commission
Junction (CJ)
How
to choose a CJ merchant
Linkshare
ShareASale
What
is affiliate marketing?
This is not MLM or Network Marketing.
Affiliate marketing is usually only for people who have
their own websites. In rare cases, merchants or networks will allow
affiliates to join without a live website, but these are few and far in
between. You'll see this more often with in-house programs.
Merchants offer to pay commissions for
affiliates to put links to their products and/or services on their websites.
When a visitor clicks on one of your links and buys something, you get
credited for the sale and you make money. Commissions are ONLY paid when a sale is made. These programs are completely free to join and they will never ask
you to pay anything. There is no membership fee to pay and you don't
have to upgrade. It is strictly "get paid when you make a
sale".
If you've ever bought anything online,
chances are that you purchased something from an affiliate site and
you don't know it. Affiliate websites are often much better than the
merchant site itself because affiliates promote several merchants at one
place. It gives the visitor many choices and they can compare prices
for the same or similar products.
Is there a website that you particularly enjoy visiting? A
special store where you buy on a regular basis? A special service or
product that you're very fond of? Look to see if they have an
affiliate program. If they do, apply to join their affiliate
marketing program and promote it on your website with your own
testimonial. Nothing sells better than personal experience.
Networks
There are numerous independent networks
that handle affiliate
marketing programs for merchants. By joining as an affiliate, you
have access to hundreds of participating merchants who
offer affiliate programs, such as:
LinkShare
Commission
Junction
Share
a Sale
Reg
Now Computer software only
Affliate
Window - UK
Site
Link - Australia
Clickbank.com
(read the fine print!)
LinkShare Referral Program
Share
a Sale
Affliate
Window - UK
If
affiliate marketing is an area that interests
you and you're not familiar with the ins and out of affiliate marketing, we would strongly suggest to
visit the Affiliate Marketing Forum
. You will learn everything you need to know about the best and
worst sources for affiliate marketing and merchant partners. It's
free to register and you'll learn plenty there! If you want to be
successful, surround yourself with successful people.
Indies
or in-house affiliate programs
Networks charge a fee to their merchants to
be promoted via their networks to their affiliates. These fees vary
from network to network and many merchants cannot justify the expense
because they're just too small, or just don't want to pay these extra
expenses. So they choose to have an in-house program that they run
themselves.
Is an in-house program better than a
merchant through a network? Sometimes yes and sometimes no. It all
depends on the affiliate reporting program they use. Some are very
good, others really need to be improved and are very limited. The
majority of my merchants are in-house programs. I find them more
trustworthy than working with CJ or Linkshare. But that is just my
opinion.
Some of the cons you can, not necessary
"will", encounter in in-house programs
- access to fewer merchants
- fewer options to promote the merchant
- access to banners and text links only
- no creatives, no dynamic links, no
datafeeds
- link to any page or product on merchant
site with a text link only; generally speaking text links work
better than banners or images, so this is really a problem, it just
limits your promotions on your website.
- Many have inexperienced or unresponsive
affiliate managers (this also happens in networks)
- many user ID's, usernames and passwords
to remember, not to forget all the sites where to log in
- no consolidated payment, so you have to
make enough sales to reach the minimum payment of the merchant before
you get paid
Some of the pros of in-house programs -
not ALL
- easier to communicate with the merchant
or affiliate manager - more responsive and eager to help
- commission rates are often higher
- tracking of sales and clicks is often
more trustworthy, many offer phone, fax, email, and mail tracking
- depending on the program, a customer
could be your customer for life, meaning you get a commission every
time they place an order even if they go straight to the merchant site
or call them to order (example: TheraBreath)
- the majority don't work with parasites
- can offer very high quality links,
pictures, creative designs, articles
- you can find products and services that
appeal to a smaller niche that you won't find anywhere else
- in many cases you don't need a website
to join them
- some will offer free hosting if you
choose to get your own domain name for the pre-made website (GrowerFlower
is one of them)
- 2 tier programs are common with in-house
affiliate programs
- many have their own discussion board and
forum
How do you get started?
First, you need to know how to build a
website. It doesn't have to be expensive, and in most cases, you
don't even need to know any HTML or other programming to get
started. If you've never built a website before, this program offers
a 10 day Free Trial .
I tested this one for the full 10 days, that's how http://www.exquisite-gardens.com
was born. I found it fairly easy to get around and build pages, the
support is very good, they answer your questions in less than 24
hours. You can also call them. They are located in Vancouver,
BC, in Canada, but their prices are in US funds.
If you're Canadian, dotCanada.com
offers very affordable web hosting and it also has a built-in website creator
if you need it. They have great discounts if you pay for
several months or a year at the same time. Prices are in Canadian
funds.
Register.com
also provides a website builder and cheap hosting, starting at $4.95 per
month.
These tools are great to walk you through the steps of
building websites. Take advantage of free trials, don't be afraid to
make a few mistakes. That's how you learn! You have
absolutely no reason not to be able to build your own website.
If you already have
a website and need a good web host, we strongly recommend HostSave .
I have two websites hosted with them with more to come. My-biz-world
has been hosted with HostSave
since April 2001 and I couldn't be happier with their service and
support. Extremely reliable host that provides more than enough
options at very low prices. No set up fees!
Ok, now you know where to go to build your
own website. What's next?
Now you need products and/or services to
promote. So where do you find them? These are established
Affiliate Networks:
LinkShare
Commission
Junction
Share
a Sale
Reg
Now Computer software only
Affliate
Window - UK
Site
Link - Australia
Clickbank.com
(read the fine print!)
LinkShare Referral Program
Commission
Junction
Share
a Sale
Affliate
Window - UK
It's 100% free to join any of them and you
don't have to pay anything to join any merchant programs. You can
join all Networks and promote several merchants from one or more networks
on the same website. Or you can choose to promote only one merchant
per website. At your discretion.
Browse the merchant directories in every
Network, see what type of products and services they have, look at their
links. Then pick a subject that you'd like to talk about, join
merchants that offer related services and products, and start building!
How do you choose a good
affiliate program to promote?
Depending on the product or service you
choose to promote. Is it something that people only buy once?
Software, computers, web hosting would fall in this category. There
is no residual income (very rare in affiliate marketing) or a chance for
multiple commissions from the same customer with these programs, you get paid on new sales
only. If that's the case, then look for merchants who offer the
highest commission for your chosen product and the longer return
cookies. All this information is available on the merchant page in
every network.
If you're building a shopping mall, or
promoting something that people would buy often or on a regular basis,
such as clothing or jewelry, choose merchants that allow unlimited sales
versus those that only pay once on the original transaction. Again,
look at the cookie duration, and pick those that last longer. You
could be making commissions on several purchases by one customer, or get a
one time commission regardless of how many times a customer buys from one
of your links. This is very important to understand. There are
some merchants, either as part of a network or totally independent, who have ways to track phone orders, while
many don't. If you can find one that does, you should do
well since you won't lose commissions on offline orders.
An example of that is a Bad Breath
affiliate program which is an independent program. NO cost to join,
and they provide the website with a link generator to link to the page you
want to link to. Those who call the company to order have an
extension number which is your affiliate number. Once a customer has
ordered through your page, they are your customer for life. Your
affiliate number is included in the database with the customer's
information. Every time the customer orders, you get a
commission. If you want to know more about bad breath, you can download
the free e-book here.
Now look at the commission structure of the
merchant.
Some merchants pay a fixed amount per sale, others will pay a percentage
on each sale. If the percentage is low, 3-5%, it may not be
worthwhile to promote. On the other hand, if the products are
expensive, or if it's something that can be sold regularly, it may be a
very lucrative merchant. Do some quick math to see if it's worth
your time. Selling products that give you 3%-5% commission is
still better than selling NO products from a merchant who offers 20%
commission. YOU are the only one who knows if it's worth your time
or not.
Some merchants automatically approve you on the
spot as soon as you click "join program", while others want to review your website first and
then decide whether it is appropriate for their products and/or
services. It takes anywhere from a few hours to several weeks to be
approved or declined depending on the merchant.
Should a merchant decline you for any
reason, you can email them and put a personal note to let them know why
you are applying to their program and why you think they would be a good
fit for your site. In some cases, affiliates who don't have a home
address in the US get turned down by merchants who only cater to the US
market. This is the internet, the WORLD wide web, so a quick note to
the merchant can usually reverse their decision.
Another reason to be declined by a merchant
is if you have several websites listed with the network and the merchant
doesn't look at all of them, they only look at the first site that pops
up. If that site is not something that is relevant to this
particular merchant, you will be declined. Again, a quick email to
the merchant should reverse their decision and approve you.
You can drop merchants at any time in any
network. But be careful, read the agreements FIRST. Just
like you can drop a merchant, merchants can also drop you as an
affiliate. You are there to make sales for them. If you don't make
any sales, and/or you don't send them any targeted traffic or not enough,
they can terminate your affiliate agreement with them. Since there
is no costs involved, and you're not making any money with them anyway, it
isn't a big deal.
How do you choose a Network?
First of all, all networks have their own
forum at Affiliate Marketing Forum.
Each network has a representative who answers questions and responds to
problems or concerns. Some merchants also have forums there for
their own programs. Many Affiliate Managers (AM), people who
represent merchants and your number one contact for your merchant(s),
answer affiliates' questions and are also quite active in various
discussion forums. Some are more helpful than others, and some AM
never answer emails from affiliates. It's up to you to decide which
merchant you want to promote regardless of their interaction.
Commission
Junction (CJ)
CJ
is an established network with a lot of merchants. However, CJ is
HIGHLY pro-parasite and strongly recommend parasites to merchants.
What are parasites? They are companies which display popup, pop under, or side/bottom
scrolling ads on your website(s) without your approval or the approval of
the customer. These ads have the ability to overwrite your cookies
on the customer's computer and set their own cookies in the place of
yours. In other words, they are stealing your commissions without
your permission! Before joining merchants at CJ, visit Affiliate Marketing Forum
for more info on parasites. Look for merchants who have the
"Trusted Merchant" seal of approval. This will save you time and possibly a
lot of money. Another reason I highly recommend Regblock
, the best parasite blocker of its kind and the least expensive.
Where AdAware and Spybot highly target cookies and see everything as
dangerous and only remove it AFTER it's in your computer, Regblock
stops it from getting installed in your machine in the first place. On
the bright side of CJ, not all merchants use parasites. That's why
reading the merchant agreements is very important before you join or start
promoting them.
CJ
has a consolidated payment structure, which means that once you reach the
$25 minimum payment from ALL merchants combined, you get paid. This
means that if you joined 10 merchants in CJ, and you made $5 with one, $10
with another, $3 with another, etc., CJ, not the merchant, will pay you
once you reached the $25 minimum from all commissions earned from all
merchant programs. You can set your minimum payment to any amount as
long as it's over $25. This is especially useful for affiliates who live
in countries other than the US and have to pay a bank fee to deposit
foreign cheques in their bank account. With CJ, if you haven't made a sale in 6 months,
they will suspend your account and you have to email them to reactivate
it. If you can't make a sale in 6 months, you really need to take a
good look at what you're doing and the merchants you're promoting because
there's definitely something wrong somewhere.
How
to choose a CJ merchant?
The
following explanation was posted by Leader,
who is a Moderator on the Affiliate Marketing Discussion Board. She
has been working with CJ for several years, in fact it is the main network
that she works with to choose merchants. She understands their
structure better than most people. I thought this would be helpful
and useful for new affiliates who would like to join, or have joined, CJ
but don't understand how it works. You can find this post on the
board here.
If you want to register for ABW (registration is free and will allow you
to view many more threads), you can do so by clicking
here. Remember that a discussion forum can generate heated
debates, arguments and flaming remarks!
*General*
guidelines to working with the CJ "rating system" (bars and EPC)
for picking per-sale merchants.
Your
site, and your marketing skills, have a lot to do with what will work well
for you. It is possible to do well with a 2-bar merchant, and it's also
possible to do 0 with a 5-bar merchant.
I
use this system in conjunction with other things, like whether I
can sell a particular item or my overall opinion of the merchant (I won't
sign up for known clods, for instance).
"Map"
Legend-->Roughly speaking: Low EPC = under $5, Medium EPC, $5-10, High
EPC = over $10.
This
guide does not apply to low-paying Lead merchants (contests, etc).
1
bar + high EPC = not many people want that merchant's products, but the
few who do look for that will convert well. Result, once in a blue moon a
sale happens.
1
bar + really low EPC (under $2)= The merchant stinks! People come, but
they don't buy.
1
bar + low EPC = The merchant stinks, but a sale may occasionally fluke in.
Still a waste of clicks.
5
bars + lousy EPC = The merchant stinks. But enough flukes happen out of
their outlandishly huge traffic stream, that they make money despite a
lousy CR. Ebay's one of these.
4-5
bars + high EPC = A probable winner. Exception: Some things, like
mortgages, have such a high commission that they can get 5 bars even with
relatively little action going on.
2
bars = a probable stinker.
3
bars = Iffy. It may be good, or it may be a stinker in disguise.
Vast
gaps between 7-day EPC and 3-month EPC amounts/oddball trend graphs: These
are BIG warning signs.
The
breakdown of the fish visibly a' jumpin' is this:
HIGH
7-day and LOUSY 3-month EPC = Reversal Maniac. The sales are coming in
fine, but are being taken away before the payment happens. Believe the LOW
figure.
ROTTEN
AWFUL 7-day EPC with GOOD 3-month EPC = Tracking has recently become
messed up (or, probably more accurately, messed with)! Or, the
merchant has died! A check of the 7-day trend graph will often show
recent, multiple $0 EPC days. Run away from these like the plague that
they are. EXCEPTION: Batching merchants (those who report sales for a
certain period all at once - once per week, biweekly or monthly).
Things
bouncing all over in the trend graph, when it's not a batching merchant =
a red flag. Be wary, it may be a twitchy hand on the Switch causing those
spasms...
Share
a Sale (SAS)
Probably
the smallest network with less merchants than CJ or LS (Linkshare). The
best part of SAS is that they are 100% PARASITE-FREE! Merchants
AND affiliates at SAS are not allowed to use any type of software, coding,
programming, or anything else that may steal commissions from legitimate
affiliates. SAS have their own forum also on the Affiliate Marketing Forum
and they have SAS representatives and other Affiliate Managers who answer
questions and help others. SAS also has a consolidated payment structure,
which works exactly the same way as CJ. The minimum payment with SAS
is $50. When your commissions don't get stolen by spyware, it's a
pretty easy minimum to reach!
LinkShare
(LS)
Linkshare is also a large network with many
merchants. Linkshare also allows the use of parasites and
promotes them to merchants. You can read about LS and some of their
merchants on the Affiliate Marketing Forum
. Linkshare's payment structure also works differently than CJ and
SAS. Each merchant has a minimum
earned commission requirement before you can get paid. Some
merchants choose to send you a cheque directly while other commission
cheques are sent through Linkshare. So what this means is if you
joined 10 merchants with Linkshare and all have their own minimum payment
requirement, if you earn $5 with one, $10 with another, $3 with another,
and so on, you won't get paid until you have reached the merchant's
minimum payment. If one of your merchant has a $25 minimum, you will
have to earn a minimum of $25 in commissions with that merchant alone
before you get paid. It's not a combination of commissions from all merchants like
CJ or SAS. So when you join merchants through Linkshare, take this into
consideration. Don't join Linkshare merchants for the fun of
it. If you don't think you can sell enough of their products to
earn the minimum commission payment before you can get paid, don't join
them! If
you drop a merchant before you reach their minimum payment, in most cases
you also forfeit any commissions earned.
There are many more networks available, but
those are the main ones. Some only have merchants in
certain categories (computers, software). Others work mostly with
parasites. Really read the TOS and all agreements BEFORE you join a
network and merchants.
Next step... promote your website: test, test, test, and test
some more. Then submit to search engines and start promoting!
If you need help with search engine
optimization for your website, visit our SEO page.
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