39 replies to this topic

[bilal_zd]

I agree this is a very interesting topic and I hope to hear more...Can I ask how have you all gone about ACTUALLY FINDING YOUR AFFILIATE team? This is just for the os Affiliate program.....I am also interested in using this as I have just started up, and am looking for a start to bring in sales and then word of mouth really does a great job. I look forward to the replies.......

[joeker]

So let's say an affiliate refers a customer who purchases something from my site. Is it standard to give the affiliate a commision just on that one sale or on recurring sales form that customer?

Thanks in advance

[Mediajuggle]

Just on the sale

joeker, on Jul 19 2005, 03:29 PM, said:

So let's say an affiliate refers a customer who purchases something from my site.  Is it standard to give the affiliate a commision just on that one sale or on recurring sales form that customer?

Thanks in advance

<{POST_SNAPBACK}>

[Mediajuggle]

You should watch your affiliates closely to make sure they aren't spamming because at least in the US it could cost you your business. I just read an interesting article in Practical Eccommerce that stated.....

Quote

The Federal Trade Commission has recently filed a major lawsuit against a merchant based upon third party spamming, seized its assets without notice and effectively shut down the business, all at the very beginning of the case...

...In an enviroment in which a relatively small-time alleged spammer was hit with a $1 billion judgement by a federal court in Iowa, and a spammer operating out of a house received nine years in prison in Virginia, this expanded notion of responsibilty carries with it huge implications. These legal actions are being brought against employees, shareholders, executives and even board members, often with little consideration give to the extent of the personal involvement in the management of the affiliate program. What's more, courts have already held that spam judgments are not dischargable in Chapter 7 bankruptcy, so a civil judgment could follow a defendent for a lifetime.

interesting eh...?

Edited by Mediajuggle, 19 July 2005, 23:19.

[fut]

What about for those out there who work on a low profit margin - (e.g. 33% per sale) - how much percent of TOTAL price for each sale would you suggest is viable? I don't know whether to offer 10% or 20%, really.

[h2oguyofnh]

Tough decisions....

I think that you need to figure out if the new customer is likely to return for repeat sales or refer others. If so, you can afford a higher percentage.

[Mediajuggle]

fut, on Jul 28 2005, 05:09 AM, said:

What about for those out there who work on a low profit margin - (e.g. 33% per sale) - how much percent of TOTAL price for each sale would you suggest is viable?  I don't know whether to offer 10% or 20%, really.

<{POST_SNAPBACK}>

Well remember, the price that you're paying to acquire that customer through an affiliate sale is pretty low compared to other methods. Consider that a one time fee for that customer who will now return directly to your site to make their next purchases.

[hubcat]

Thanks for all the posts. I am completely new to shop ownership (opened on July 22nd) and am just now researching affiliate programs. In my case, I am selling environmentally friendly clothing, so I have a very targetted marget.

I want to get involved with some companies that take affiliates, but I would approach them and they are all "passive" affiliates. For example, PETA has a shopping mall of affiliates that I would like to get into and so do a few green online magazines. Essentially, if they were directories I would just pay them to get listed. But I've heard mediocre things about banner ads, so I would rather get listed in their affiliate shopping and pay commission than pay a flat rate for a banner ad on their site.

Given this, can anyone tell me - Is it standard practise to solicite a site to become an affiliate for you? Keep in mind some of these are non-profits. Since they're all passive sites (these are sites that will NOT be out there actively trying to sell my products), can I reasonably offer 5% or 10% commission (and hope to have them agree)?

Since I only plan (at least initially) to have a few affiliates, can I get away with using the OSC affiliate module? I've heard a lot of you saying going with an external is better, but I'm not sure what the benefits of an external provider are, and my budget is busted.

Any help appreciated!
Adrienne

http://www.faeriesdance.com

[FalseDawn]

Personally, I think for a small store (especially when just starting out), it's more cost effective to do your own marketing and leave affiliates till you are more comfortable with what's involved.
Affiliates may be a good source of inbound links, but is the risk of having them spam and screw you worth it?
Also, you will have to analyze your profit margin and figure out just how much you are prepared to give to an affiliate, too. Most expect 20% plus.
Soliciting a site to act as an affiliate for you sounds like a waste of time to me, and smacks a little of desperation...

I have had good results with google adwords - plus it's a lot of fun tweaking the ads for better results.
For a niche market, your costs should be pretty low (on a per-click basis), and if you make your keywords specific, you can pretty much guarantee that click-thoughs are interested in buying.

I would also consider listing at shopping.com, nextag.com, bizrate.com (although they want $100 deposit which pays for click throughs).
Generally around 25-35cents a click, but highly targetted.

And of course, froogle submission is a must - I get a shedload of free traffic from them...

[homewetbar]

FalseDawn, on Aug 10 2005, 02:42 AM, said:

Personally, I  think for a small store (especially when just starting out), it's more cost effective to do your own marketing and leave affiliates till you are more comfortable with what's involved.
Affiliates may be a good source of inbound links, but is the risk of having them spam and screw you worth it?
Also, you will have to analyze your profit margin and figure out just how much you are prepared to give to an affiliate, too. Most expect 20% plus.
Soliciting a site to act as an affiliate for you sounds like a waste of time to me, and smacks a little of desperation...

I have had good results with google adwords - plus it's a lot of fun tweaking the ads for better results.
For a niche market, your costs should be pretty low (on a per-click basis), and if you make your keywords specific, you can pretty much guarantee that click-thoughs are interested in buying.

I would also consider listing at shopping.com, nextag.com, bizrate.com (although they want $100 deposit which pays for click throughs).
Generally around 25-35cents a click, but highly targetted.

And of course, froogle submission is a must - I get a shedload of free traffic from them...

<{POST_SNAPBACK}>

Just based on personal experience NextTag really was unprofessional and I had alot of difficulties with them, I would watch myself when advertising with them.

[DoctorMason]

OK, we learned in school that with a TEAM, Together Everyone Achieved More. So we seek info from all you readers while we try building a successful Affiliate program.

First, we're a local television advertising store NOT exactly seeking non-local clients for some of our "services".

What we're trying to do is recruit people (Affiliates called Official Talent Scouts) with a camcorder or portable DVD player who will show our company video to prospects. This video describes our 7 "viewer supported" TV shows. As of today none of the shows are on the air, but could be when enough sales have been made to make it feasible. We currently have a 1/2 hour promo describing these TV shows and a number to call if you want to participate. It will likely be what is aired a couple of weeks while waiting for word of mouth to draw paying clients.

We need 57 people (sales) each week to reserve one minute (60 seconds) on a local cable show called "Name Here" and pay a fee of "X-dollars". The client provides us with a home made DVD or videotape that we then play during the weekly TV series.

Because we have only enough $ to pay for one half-hour show, we have decided to use that money to purchase 20-30 30 second TV commercials to promote the show.

To get the most from our ad budget we decided to recruit "Official Talent Scouts" who will be in the field soliciting customers long after our TV ads budget has been used. Nobody can be on TV unless he/she signs up via one of these scouts.

Their unique selling proposition is they can guarantee you a spot on one of these TV shows. While you can't get on American Idol for example, you can get on our Karaoke Superstars if you pay the fee and if time has not been sold out for that week.

All of these planned TV shows involve our local citizens, a niche market, on local television and so may not appeal to national players.

The challenge is how to set up the Affiliate software so that as reservations are made time is deducted from the total hour involved for that week. And also anything else we should know about, including keeping track of our sales crew (Official Talent Scouts).

Expansion? Yes, our cable company has offices in several other states and cities so we plan to offer the same "services" in those areas once it has been perfected locally.

Additionally, we will be soliciting show ideas from others able to pay the fees to have a local show in their areas. Our osC store will handle as much of the overhead as possible.

[kitchenniche]

Hi there,

I have installed the OSC-Affiliate contribution and I am wondering how do you guys actually get the affiliates? Do you send e-mails to other sites asking them if they want to join your affiliate program or are there some kind of affiliate directories?

Thanks a lot

Sandra

[DoctorMason]

kitchenniche, on Sep 17 2005, 06:27 PM, said:

Hi there,

I have installed the OSC-Affiliate contribution and I am wondering how do you guys actually get the affiliates? Do you send e-mails to other sites asking them if they want to join your affiliate program or are there some kind of affiliate directories?

Thanks a lot

Sandra

<{POST_SNAPBACK}>

Well depending upon your situation, you could start off with late night cable TV commercials. They can cost as little as $2 for a 30 second ad. And if you make it up yourself, as we have done, you save even the costs of having it done for you. You will find lots of cable channels nationwide with low cost rates, where spending $100 will get you a good return.

[homewetbar]

DoctorMason, on Sep 18 2005, 11:38 PM, said:

Well depending upon your situation, you could start off with late night cable TV commercials. They can cost as little as $2 for a 30 second ad. And if you make it up yourself, as we have done, you save even the costs of having it done for you.  You will find lots of cable channels nationwide with low cost rates, where spending $100 will get you a good return.

<{POST_SNAPBACK}>

How do you find out about these low cost cable deals?

[kitchenniche]

Well, before i start with a tv commercial i'd like to see my affiliate program in action... but thanks for the idea

Any ideas about how to find affiliate partners besides tv commercials?

Edited by kitchenniche, 19 September 2005, 00:05.

[DoctorMason]

homewetbar, on Sep 18 2005, 03:42 PM, said:

How do you find out about these low cost cable deals?

<{POST_SNAPBACK}>

That's the business our group is in, so it comes naturally to us. I'd be willing to assist you if you'll tell me your cable company name, and your approximate zip code.

[DoctorMason]

kitchenniche, on Sep 18 2005, 04:03 PM, said:

Any ideas about how to find affiliate partners besides tv commercials? 

<{POST_SNAPBACK}>

You could advertise in the tabloids seen in supermarkets. And I'm thinking you could find mailing lists online where your prospects may be located. Or in magazines your prospects would likely subscribe to.

What are you selling, anyway?

[DoctorMason]

kitchenniche, on Sep 17 2005, 06:27 PM, said:

Do you send e-mails to other sites asking them if they want to join your affiliate program or are there some kind of affiliate directories?

<{POST_SNAPBACK}>

Sandra,

I put "affiliate directories" into google and came up with the following:
http://www.google.com/search?hl=en&q=affiliate+directories

I'm sure you've already checked into that one but you didn't mention it in your post.

[kitchenniche]

DoctorMason, on Sep 19 2005, 02:42 PM, said:

You could advertise in the tabloids seen in supermarkets. And I'm thinking you could find mailing lists online where your prospects may be located. Or in magazines your prospects would likely subscribe to.

What are you selling, anyway?

<{POST_SNAPBACK}>

I'm selling over 900 kitchen related items. Here's my site: http://www.kitchenniche.ca

thanks for your ideas

[kitchenniche]

DoctorMason, on Sep 19 2005, 02:46 PM, said:

Sandra,

I put "affiliate directories" into google and came up with the following:
http://www.google.com/search?hl=en&q=affiliate+directories

I'm sure you've already checked into that one but you didn't mention it in your post.

<{POST_SNAPBACK}>

I was looking for "affiliate program" in google but i ended up with lots of affiliate networks and that's not what i am looking for. I'll give it a try and search for "affiliate directories". thanks a lot, i didn't think about that.

Sandra