| As a long time affiliate program | | | | 6. You will be able to offer a |
| manager, I have been faced with the | | | | competitively priced retail product. You |
| good, the bad and the ugly. In order to | | | | don't have to be the cheapest for sure. |
| manage the customer's expectations, I've | | | | But if your competition is less |
| come up with 10 benchmarks they must | | | | expensive and you don't have a value |
| first meet before I take them on. While | | | | proposition to support your pricing |
| I'd like to be a miracle worker and help | | | | model, you will have trouble getting |
| everyone that approaches me, some | | | | affiliate sign ups. |
| situations just can't be helped without | | | | 7. You know the average price per sale |
| some fundamental changes in their | | | | on the site. Low priced items are not |
| business model. | | | | affiliate favorites as they have to |
| If your business meets these criteria | | | | drive lots of traffic to earn any money. |
| you will be able to attract and sign up | | | | A retailer with at least a $60 average |
| affiliates. | | | | sale is a bare minimum. Many times it |
| 1. You are able to sell the product | | | | may be a packaging issue, but if the |
| nationally or internationally. Localized | | | | retailer hasn't figured it out by the |
| products do not sell well in affiliate | | | | time I show up... it can be really heavy |
| programs. Affiliates come from | | | | lifting to get them to package their |
| everywhere. Limiting the affiliate to a | | | | products correctly. |
| local market does not work. This means | | | | 8. You know the conversion rate of the |
| many kinds of retail product | | | | visitors to buyers on the site. |
| distribution models limited by | | | | Depending on the conversion rate and the |
| territories do not work. | | | | average sale price I can give the |
| 2. You are able to sell a unique | | | | retailer a pretty good idea if he is |
| product. This goes to the competition. | | | | going to be successful in attracting |
| When I hear the phrase: "Well... there's | | | | affiliates. A 1% conversion rate can be |
| really nothing quite like it on the | | | | good depending on what you sell, and I |
| Internet", I know the prospective client | | | | have some customers that run at 4% as |
| has not done any online research. There | | | | well. |
| is competition in virtually every | | | | 9. You know and understand what kind of |
| segment of every product type on the | | | | ecommerce solution the retailer uses. If |
| web. Get used to it. There is | | | | your conversion rates are abnormally low |
| competition for every dollar out there | | | | for the category you are in, I may pass |
| regardless of how unique you may think | | | | because this may mean your ecommerce |
| your retail product is. | | | | solution or customer service is not up |
| 3. You have a brand name or sell brand | | | | to par. |
| name products. Having brand names does | | | | 10. You have a website that is |
| make it easier to sell online. Having a | | | | attractive and compelling. So often |
| branded category name is even easier. | | | | overlooked as a determining factor, in |
| Does that mean you have to have a brand | | | | many ways it is a major factor in the |
| name to be successful... no. | | | | affiliate's decision on whether to add |
| 4. You will be able to offer an | | | | your site links to his site. While he |
| aggressive affiliate payout. Brand names | | | | wants to make money, if he sees poor |
| many times prescribe low payouts to | | | | quality design work he is unlikely to |
| affiliates. This makes getting affiliate | | | | add you. He knows if its ugly to him, it |
| buy-in difficult. I launched a national | | | | will be ugly to the people he refers to |
| brand company with a really low payout | | | | the site. |
| after suggesting a much more aggressive | | | | So how did you do? If you met at least 9 |
| customer acquisition number. The program | | | | of the 10 you are in good shape. What |
| started out well and then fell off | | | | happens if you are lower than 8? Most of |
| dramatically after 60 days as affiliates | | | | these are fixable so fix them. If it |
| tested the program and didn't make | | | | can't be fixed then you may want to get |
| enough money to justify their ad spends. | | | | a second opinion or look for alternative |
| They were gone. I was able to keep them | | | | ways to drive free traffic to your site. |
| by raising the commission, but almost | | | | If you scored a perfect 10 you can do |
| lost them entirely because the program | | | | well with an affiliate program if you |
| was not priced right coming out of the | | | | execute it right. |
| gate. | | | | Durk Price is a professional affiliate |
| 5. You know the retailers customer | | | | manager. He has managed large retailers |
| acquisition number when I launch an | | | | like LimitedToo, Beauty Trends and |
| affiliate program. Hard to imagine, but | | | | others. He has launched affiliate |
| many retail merchants have no idea what | | | | programs and had affiliate sales account |
| they could or should be paying to | | | | for 27% of total online sales within 90 |
| acquire customers. If they don't know | | | | days of launch. His primary focus is |
| and seem to think the number I quote | | | | managing affiliate programs for retail |
| them is too high, I go looking for other | | | | companies. |
| opportunities. | | | | |