Find out the answer to the 10 most common questions about affiliate marketing management

1. Is affiliate marketing right for my business?

Affiliate marketing is one of the most powerful and effective means of gaining new customers, regardless of your product or service. Affiliate marketing exposes your business to new customers and can take you out of your marketing rut. Also, when you start an affiliate marketing campaign, you are in control. You determine the commission rate you pay and you pay only when your affiliates make a sale. It is a no-loss trade for you because you only pay when a sale is made.

2. What are the startup costs?

When you start an affiliate program, you have the option of running the operations yourself or having it run by an affiliate network. Costs for either option are reasonable and typically start at a few hundred dollars. Also, as a business owner, don’t forget that many of your costs may be tax deductible. To start an affiliate marketing program internally, costs will include:

affiliate management software

Affiliate marketing support which includes a website that answers affiliate questions and a way for affiliates to contact you if a problem arises.

Affiliate marketing materials, including banner ads, copy, coupons, and promotional content.

An affiliate marketing contract agreement

Tracking software to track cookies, clicks, payments, etc…

If you choose to hire an affiliate network to run your program, they usually charge a flat fee or a percentage of what you pay each month.

3. How much time will it take from my workday/week?

Most experts agree that it will take you about an hour and a half each day to run your affiliate program. They also recommend that you set aside more time in the first few months of your program, about two to three hours a day. Even the most efficient affiliate managers spend about 45 minutes a day running their affiliate program.

Professional affiliate managers typically spend an average of 40-80 hours per month managing, tracking, and promoting their affiliate program.

4. Should I use an affiliate link?

Do you have an extra 3 hours a day for the next two to three months? Do you have an hour a day to spend managing your program after completing the initial three-month program? An affiliate network, while it may be a bit more expensive at first, can help you focus your time on other profit-generating tasks. Additionally, an affiliate network can help expose your affiliate program to a wide variety of experienced affiliates, which means more money in your results and more exposure overall.

That said, there are plenty of effective in-house solutions out there, including some you’re probably already familiar with, like 1shoppingcart.com and affiliatepro.com. These programs will help you maintain 100% control of your affiliate program and are effective in managing your program.

5. How should I pay affiliates? What type of commission works best?

This is a very important decision because not only does it affect your earnings, the right commission rate will help you recruit top-tier affiliates. The general rule of thumb is to set your default commission rate to a rate you can afford while leaving room for limited-time commission boost offers, promotions, and private offers. For example, if you can afford to pay 50% of your gross profit margin, pay 25% instead and scale it up so that after you hit a sales target they earn 30% or you can increase it up to 50% during the holidays or during typically low sales times.

6. How do I recruit affiliates?

Your customers can be your best affiliates. After all, they already appreciate and enjoy your products or services. A simple link on your website is a good place to start. Here are some ways to find quality affiliates:

Online forums. These are great places to meet, greet, and connect with like-minded people. They are also a good resource for affiliates who are interested, motivated, and qualified to sell your products and services. Using a forum, you can advertise your affiliate program. Be careful not to ‘sell’ the forum, as most forums look down on this and can mess it up. Also, you can include a link to your affiliate site in your signature.

Find websites that link to your competitors and approach them to be an affiliate for you. Similarly, you can find affiliates using your favorite search engine and contact them to join your program.

One last way is to join an affiliate network or get listed in an affiliate directory. This will ensure affiliate marketers who are looking for new products and services to promote. However, keep in mind that many beginning marketers also look for products and services to promote through affiliate directories and may lose interest and motivation before making a sale. This is not a strong deterrent because they don’t get paid unless they make a sale, however it should be noted.

7. What is the best way to communicate with my affiliates?

Email is the general tool of choice, which makes an autoresponder a fantastic tool for basic emails like the welcome email, presenting promotions, coupons, sending links and banner ads, and responding to frequently asked questions. It’s also generally a good idea to have an email address, fax number, and phone number available for when members have questions that aren’t answered on your FAQ web page, or when they just want to talk to you.

8. How do I motivate affiliates?

Money does not cause any doubt about it. That being said, affiliates are also motivated by feeling that they are important to you. This means that when they ask for your time, you give it to them. In addition, promotions, bonuses, prizes, contests and commission increases are tools to motivate and inspire affiliates. Constant communication, such as sending out a weekly or monthly ezine, will also help remind your affiliates that you are out there and invested in their success.

9. Do I need to hire an affiliate manager?

The answer to this question really depends on your needs. How big is your company? Do you have time to manage your program? Do you have the skills to manage your program? An affiliate manager is the person who:

recruit affiliates

Communicate with affiliates

Develop, track and report on promotions.

Develop programs to improve the affiliate program.

Motivate affiliates

Track sales and affiliate countries

Monitor your competition

These are all extremely important features and if you have the time to handle them yourself, great! If you don’t, consider hiring an affiliate manager.

10. How do I find/hire an affiliate manager?

Outsourcing an affiliate manager is pretty easy to do. There are hundreds available with a quick search online. You can ask associates, check online forums, or post an ad looking for someone to fill the position. Depending on the complexity of your affiliate program, you might consider a well-qualified virtual assistant for the job. The skills your affiliate manager will need are:

organizational skills

Communication skills

Attention to details

Knowledge of online business, internet marketing and basic e-commerce operations.

Basic HTML and graphics experience are a plus

Because they will be representing you, you want to make sure they are likeable.