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