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thebirdguy
Joined:
04 Feb 2004
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6
Location:
Idaho USA
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Posted: Wed Feb 04, 2004 4:39 pm
Post subject: How to set up a new affiliate program for my business...
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Hi,
We are in the process of setting up a new affiliate program for my business and wondered what the consensus was as far as what the most critical parts needed to be in order to be successful. ie. commission level etc..
We were planning to pay commission to the affiliate plus two levels of override.. I had been told that this set up was two tiered but if I understand a lot of the posts on this forum, it would actually be three tiered... Which would be better? What percentage should we pay on each level? Please be realistic as we still have to make this work from our side but I thought who better than affiliates to give input on the ideal program...
Without any promotion, the products we just signed an exclusive worldwide licensing/marketing agreement on yesterday are products that fill a need for practically every household and a good percentage of businesses in the country (will only be released in the US to start with)
I promise if you will give me good advice, I will make the first official announcement of our program on this forum in two to three weeks.
Thanks in advance for the advice.
Shawn |
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edburdo
Joined:
14 Jul 2003
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1760
Location:
Bangor, Maine
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Posted: Wed Feb 04, 2004 5:21 pm
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The percentage rates depend on what you are selling. eGoods have very high percentags... 50% or more. Physical good are much lower.
Also, there is a good thread about competing with your affiliates that Allan started... I don't remember the exact URL though...
DOH! It was just below this... here is the URL anyway: http://www.associateprograms.com/discus/viewtopic.php?t=2691
The multiple tier is nice in some cases, but annoying in others. If your only paying like 1 percent by the third tier, is it worth the hassle of tracking sales and comissions?
Also, are you going to do lifetime payouts, or just once?
_________________
Eric D. Burdo
They Made $6,513 a day With Clickbank Doing This... |
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Debs
Joined:
16 Aug 2003
Posts:
4296
Location:
NY
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Posted: Wed Feb 04, 2004 10:17 pm
Post subject:
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There are several comprehensive threads on this topic you may want to search for and check out ... if you can't find via search, try browsing. They have similar titles to yours.
Debs
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Learn how to turn keyphrases into quality, well-targeted articles your visitors and SE's will love with Gary Antosh's new ebook "Web Content Made Easy!" |
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thebirdguy
Joined:
04 Feb 2004
Posts:
6
Location:
Idaho USA
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Posted: Thu Feb 05, 2004 2:46 am
Post subject: update
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We have a physical product that will be shipped.
We are tentatively planning a 25% commission with a 10% 2nd level commission and a 5% 3rd level commission. It would basically be a lifetime commission as we will be using a web replicating system where affiliates actually have their own website so buyers that bought from their website would come back to their website not ours ie... it wouldn't be a click through, cookie based or anything like that, they would be purchasing from the affiliate's own website. I hope that makes sense, I will post a website address as soon as we iron out a couple of details for anyone who would like to check it out.
How does that sound to everyone?
Thanks
Shawn |
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AllanGardyne
Site Admin
Joined:
02 Jul 2003
Posts:
6326
Location:
by the beach, Australia
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Posted: Thu Feb 05, 2004 5:12 am
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One disadvantage of a three-tier program is that many (most?) of the affiliate directories will regard it as multi-level marketing and won't list it.
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Allan Gardyne
AssociatePrograms.com - You're here. Explore it! |
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Guest
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Posted: Thu Feb 05, 2004 1:41 pm
Post subject: Re: How to set up a new affiliate program for my business...
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| thebirdguy wrote: | | products that fill a need for practically every household |
I must admit this sounds a bit like the old problem of a product that is suitable for everybody. The problem is if it's marketed at "everybody", will anybody buy it?
| edburdo wrote: | | The percentage rates depend on what you are selling. eGoods have very high percentags... 50% or more. Physical good are much lower. |
I think most successful affiliates will not only realise how much you can afford to pay based on the physical nature of the product, but also consider three more things...
what is the $ commission?
what is the sales page CR? (and other follow up)
what is the market, and how easily/cheaply can they reach it.
In other words, how much will it cost them to send you a visitor, and how much will they earn for each one the send (on average)?
The emotional appeal of percentages will be most strong with "underperforming amateurs", though as Eric says, there are market expectations to consider.
Hope this helps,
Charlie. |
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thebirdguy
Joined:
04 Feb 2004
Posts:
6
Location:
Idaho USA
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Posted: Wed Feb 11, 2004 7:23 am
Post subject: site is live
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Our affiliate site is up, all the details are in the blatant forum
Thanks for all the help |
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