Entries Tagged 'Partnership' ↓

Affiliate Marketing at Full Throttle

Affiliate marketing consists of two crucial definitions: “affiliate” and “marketing”. The synergy of these terms creates new sub-form of marketing activity that more or less differs from well-known “conventional marketing”.Taking closer look at affiliate marketing or, should I say, marketing with affiliates gives us new understanding of the fact that your marketing takes place in the field of many affiliates promoting the same product/service, what by itself creates direct competitive business field.

Furthermore, this affiliate marketing takes place in the Internet, where, as we all know, one should not take a round-trip train or plane ticket to get the same product from other merchant. Such surrounding may be beneficial for customer and technological progress, but becomes a nightmare for an unestablished entrepreneur.

This is, no doubt, the toughest competition ever existed from the advent of economics as a science, because you sell exact same thing for often the exact same price at “the same street” to the same “targeted customers”. As the result, all your struggle and efforts will be rewarded in 20-50% of the sales price only, so, at best case of 50% sharing affiliate program, you will need to persuade customer to pay, say, $50 in order to earn $25 only without ability to profit from “back-end” sales stream and other. Yes, you can subscribe this customer to your ezine and advertise your other offers, but this is not “back-end” sales for one simple reason – this customer is not yours, but the affiliate product owner’s.

If you want me to continue, let me add to this affiliate marketing “picture” one final touch – you as an affiliate will compete not with just one, but with hundreds or even thousands of affiliates. The more powerful and beneficial your affiliated product is the more competition you will get, so, to some extent, and, as strange as it may seem, marketing unknown and even mediocre-quality products may be more lucrative for your short-term affiliate marketing success, simply because of weak competition.

This picture was designed on purpose to revolutionize your view of doing affiliate marketing and mobilize your efforts to drive at the full throttle, otherwise you are doomed to occupy the 90% share of no-sales affiliates that is common statistic for any affiliate program owner.

First you need a powerful engine that can move your affiliate marketing vehicle at full speed and under any “alien environment”. Your engine is your promotional materials, that whether or not:

  1. have built-in viral marketing engine, popularizing your offer beyond your marketing horizon;
  2. efficiently pre-sell your affiliated product;
  3. provoke reader’s desire to further deal with you.

If your affiliate marketing engine implies viral marketing strategies, efficiently pre-sell and encourage readers to subscribe for your email list, bookmark your page and refer to you in future as a reliable source of information then you have about 300 horse power engine capable of driving you off the “toughest crisis pit”, where others “low-power” marketers would stuck for good and simply go bankrupt with their affiliate promotions.

Second vital engine part is fuel supply and injection system. Reassure you have constant flow or, at least, access to enough gas supply or you risk to stuck somewhere “in the middle of the desert” with no hope of getting out. In other words, you need to have the sources of targeted traffic and make your offers exposed to your niche market. Needless to say, no matter how good your marketing engine or promotional materials are, without fuel or traffic you will move nowhere.

Keep an eye on all machine parts working smooth without breakdowns, some of them are out of your control to fix like problems with “weather” around your 3rd party hosting server, but the most of them are related to proper functioning of your site, customer service etc. and are totally your responsibility.

Keep your head up and drive your affiliate marketing fast, but watch for pitfalls.

Pavel Lenshin is an Internet entrepreneur, web-developer and marketer. Learn how you can maximize your online profits and get a free access to special profit opportunities and thousands of dollars of ebooks, reports, software, email courses, audio interviews, exclusive programs, resources and enjoy advanced Internet services. Register now free at http://anesbo.com

Affiliate Program as It Should Be

Every off- or online business has a target of growing its market share. Under all other equal conditions the percent of the market, occupied by a company, means certain level of recognition, brand, exposure and, therefore, sales and income.For small business owner a shift from 0.01% internet market share to 0.04% may result in tremendous four times income growth, the problem is in the limits of resources this particular owner has access to. Usually they are weak enough to allow such expansion at their own cost.

Help may come from two massive marketing instruments:

  • viral marketing;
  • business partnership based on outsourcing necessary resources.

Today we are going to speak about latter instrument of gaining exposure you deserve.

Business partnership is an agreement between two or more legal entities to cooperate together in order to reach mutually beneficial results.

By extrapolating such statement into a framework of gaining market exposure, we can narrow this meaning down by focusing on uniting promotional efforts for reaching mutually beneficial results.

In practice the owner of affiliate program with the aim of gaining extensive market exposure attracts fellow marketers to promote the owner’s(s’) product(s) for a reward usually in the form of commission from retail price per sale. A commission for popular info products may vary from 5% to 70%.

Promotional materials (like, endorsement letters, reviews and articles) can greatly assist your partners in promoting your product as highly effective pre-selling tools.

The dilemma of joining affiliate programs

The most common mistake beginners do is registering with all possible and impossible affiliate programs they see in hope to promote them all and collect all the money they were promised to get on the page of respective affiliate program owners.

In dominating majority of cases they end up with wasted time and money. The reason is simple, they don’t have necessary resource – a database of consumers, subscribers, business partners – people who may be interested in such type of offers. Instead, those newcomers decide to start their online businesses by promoting other people’s products, what is extremely hard, because you will build client database and credibility for the company products of which you promote, not for yourself. The only thing you can do is to grow the subscription database, unfortunately, the most valuable asset – loyal clients – won’t be accessible in any case.

Some well-known internet millionaires, making fortunes cross-promoting 3rd party products may truly support the idea of “easy income with affiliate programs”, but they tend to forget that all their profits were possible due to huge subscriber databases, thousand of affiliates and customers a newcomer does not have!

That is why start wise by creating your own product, grow your credibility, circle of loyal customers and then join and promote as much 3rd party products as you consider necessary.

Setting up partner program

Every partner program you will create or setup should have, at least, basic must-have features:

  1. Database driven registration of affiliates.
  2. Tracking affiliate sales in order to count commission.
  3. Admin control panel to support affiliates and track their sales.

There are 3 basic methods of having fully functional partner programs application, not going far into science, they are “do it yourself”, “setup 3rd party application”, “use 3rd party service”.

The first method is for those, who are knowledgeable programmers and fortunate enough to invest a lot of time in creating such a solution for personal needs or those, who are lucky to have a lot of money and hire those knowledgeable programmers. Responsibility for taking under control all support and function-related issues would lie on your shoulders.

Setting up 3rd party affiliate program solution requires much less time or money, if any. The result will be the same as above – fully functional partner program and inevitable support problems. The only difference is that you won’t be able to develop that partner application the way you need and like.

The main advantage of 3rd party service is the ability to stay unaware of how your partners sign up, track sales, receive checks and so forth, because in this case servicing your partners or affiliates will be the headache of independent company, not yours. For such “reluctance” 3rd party affiliate program provider would charge you on monthly or per sale basis, slightly decreasing your net profit at each sale.

Having your own affiliate program in place enables you to expand your market boundaries exponentially.

Pavel Lenshin is an Internet entrepreneur, web-developer and marketer. Learn how you can maximize your online profits and get a free access to special profit opportunities and thousands of dollars of ebooks, reports, software, email courses, audio interviews, exclusive programs, resources and enjoy advanced Internet services. Register now free at http://anesbo.com