What are
Affiliates? They're one big mass of people that have the same kind
of site, same kind of visitors, the same needs and deserve the
same commission - right?
Well, of course
not. But - if you think about it, that's how most Affiliate
Programs treat their Affiliates. They give all Affiliates the same
commissions, the same linking methods, the same incentives, same,
same, same! They fail to recognize that Affiliates have a variety
of needs, diverse reasons for joining, visitors from all walks of
life, different marketing styles and varying degrees of interest
in making a sale.
The hardest
part of administrating an Affiliate Program is deciding what your
Affiliates need to help them make the sale. But, by carefully
categorizing your Affiliates, you can easily determine what their
needs are and how to accurately meet them.
Here is a
six step plan designed to help you accurately categorize your
Affiliate Members:
STEP ONE:
Pick at least
three types of Affiliates.
Take a look
at your Affiliates and try to determine one outstanding
characteristic that can easily be compared across the board and
choose at least three types of the characteristic. Here are some
examples:
Level
of Sales: You may find that your Affiliates are so
completely different or so alike that its hard to find something
to classify them by. Try classifying them by the level of sales
they've reached with you. You'll most likely find that you have
a few forerunners that lead the pack with a number of sales,
quite a few Affiliates that have sporadically made a sale or two
and some that have yet to make a sale. Right there you have
three types: High Sales, Med Sales, Low/No Sales. Just determine
the levels at which each type begins and ends.
Products: If you sell a wide variety of products for
specific interests/needs you may be able to classify your
Affiliates by product. A pet shop owner can easily pick several
types: Dog, Cat, Bird, Reptile and Fish. A financial site could
classify types like Personal Finance, Small Business Finance,
Corporate Finance.
Industry: If you market commodities like office supplies,
health and beauty products, housewares and so on, you may find
that your Affiliates come from a wide variety of industries. You
can most likely classify your Affiliates according to their
industry. For example, if you sell Health and Beauty products,
you may find the Affiliates in the following industries:
Home-based, Vitamin outlets, Fitness, Self-Help, Fashion,
Women's Organizations and so on.
Profile:
If you sell a product that relies on recommendations from
high-profile individuals - you may consider classifying your
Affiliates by their profile. Your three types could be
High-Profile, world-known names, Med-Profile, industry-known
names and Low-Profile, average Joes!
STEP TWO:
Determine the needs of each type.
Each of your
Affiliate Types will have different needs -- some of their needs
will overlap, but you should find a distinct difference in many of
their needs. If you find that they all have the same needs, go
back to step one and re-think your Types.
Here are
some basic things to look for:
Linking
Methods: Different Types of Affiliates will need different
linking methods. Let's use the example above where we had the
Types: High Sales, Med Sales, Low/No Sales. Your Low/No Sales
group may be satisfied with a banner or two to place on their
site -- maybe in an extensive directory of "Online Resources".
Your Med Sales Type may be interested in an article or two for
added content on their site. Your High Sales Affiliates will
probably pass up banners for articles, guestbooks, email ads and
signature files.
Visitors: Capturing visitors is what you want. In order to
do so -- you have to know what they want. Visit your Affiliates'
sites to see what visitors are looking at and looking for. Ask
yourself, "How does my product relate to what I am seeing?"
Commissions: Different Types of Affiliates may expect
different commissions. You'll have some Affiliates that have
joined your program "on the side" and others that plan on
earning a substantial income from the program. Determine what
effort they are putting into advertising, how much other
programs in your industry are paying, the amount of time they
devote to your program and so on.
Affiliate Support: When dealing with a large number of
Affiliates, you're going to run into some support issues. "How
do I place a banner", "When are commissions paid", "Can you
write me a different article" and so on. Take a look at your
Affiliate Types, determine which Types will need the most
support.
STEP
THREE: Create and compile Linking Methods for each type.
Based on the
needs you identified in Step Two, create and compile linking
methods for each type. Here are a few linking methods to think
about:
Banners:
Though they aren't as effective as other linking methods,
banners are still widely used and expected. Make banners in a
variety of sizes to fit tops of pages, bottoms, toolbars,
sidebars and other miscellaneous areas.
Articles: These are great for Affiliates that need content
for their websites and newsletters. Be sure that your Articles
are Articles and not ads!
Email
Ads: Your active Affiliates may be interested in placing ads
in e-zines or their own newsletters. Try writing a few ads in
different lengths.
Signature Files: Dedicated Affiliates may even add your tag
to their signature line. Give them a few witty lines to choose
from.
Guestbooks: Let your Affiliates help you build your Opt-In
email lists with guestbooks. Offer them a commission for each
email address they send you, or each resulting sale from the
subscribers they send you.
Product
Images: Give your Affiliates images that show and link
directly to specific products. They'll be able to choose an
image specific to their site, or choose several images to
display.
Review each
Affiliate Type and match them up with your new linking methods.
You may have some linking methods that overlap Types -- this is
okay. Just be sure you are concentrating on the Affiliates' needs!
STEP FOUR:
Decide on compensation for each type.
Your ideal:
0% commissions
Your Affiliate's ideal: 99.9% commissions
Since
neither you or your Affiliates live in a perfect world, it's up to
you to decide on a fair commission level. Your first decision will
be to determine whether you want to pay a flat rate or percentage
of each sale.
Percentages: A percentage pay scale is easy for your
Affiliates to digest -- the bigger the price tag, the more they
make. This type of commission structure can work well for you if
the same holds true for your company -- after the Cost of Goods
Sold, the bigger the price tag, the more you make.
Flat
Rate: A flat rate commission will work well for you if your
profit after Cost of Goods Sold is roughly the same across the
board. In other words, if you aren't making considerable more by
selling higher priced items - neither should your Affiliates.
Based on the
needs you identified above for each of the Affiliate Types, decide
on a commission amount for each Type. If you have a two-tier
program, consider the possibility of different second tier rates
as well.
STEP
FIVE: Develop a plan for effective yet painless management.
This could
be one of the most difficult parts of your categorization process.
You have your Affiliate Types, the linking methods for each and a
fair compensation plan for each. Now, how do you manage it all?
Most
software programs aren't set up to handle Affiliate
Categorization. So, you may have to develop a database or a
spreadsheet to keep track of your Affiliates and their Types.
There is one
Affiliate Program Solution on the market that handles Affiliate
Categorization called
MY
Affiliate Program.
My Affiliate
Program Software will allow you to manage an unlimited amount of
Affiliate Categories. The software makes customizing commissions,
click-through pages and linking methods fast and easy. You simply
set up an Affiliate Type, name it and choose its characteristics
like commission rate, linking methods and so on. Then, as new
Affiliates sign up, tell the software which Type you'd like them
included in -- that's it. The software handles the rest.
STEP SIX:
Develop Promotions for your Affiliate Types.
Once you
have your Affiliates properly categorized and your system under
control, consider developing promotions for your Affiliate Types.
Give them special incentives to sell more during a certain time
frame, move seasonal products, or increase business during your
slow months. Offer them additional commissions, or even bonuses
for reaching a specific amount of sales.
Whether your
Affiliate Categorization strategy is complex or simple -- just
keep in mind that your Affiliates are not clones of one another.
They have different vistors, different backgrounds and different
needs.
For More
information about MY Affiliate Program Software, visit:
http://www.myaffiliateprogram.com/u/a/t.asp?id=10726.