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mccloud
Joined:
23 May 2010
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Posted: Sun May 23, 2010 2:13 pm
Post subject: closed vs open affiliate program
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Hello. Web developer here. I do have some experience with affiliate marketing, but I could use an opinion from someone who does this fulltime.
We've developed a strong product, large niche and the conversion rate is excellent. It's unique and we have no competitors (yet).
My dilemma at this stage is whether the affiliate program should be closed or open. By closed I mean, the user would have to purchase the product, whereby if it is open, anyone can come along, create a free affiliate account, and start promoting it.
open - more people like to promote it... but not as intensively, and our link and ads might end up sitting next to some pretty crappy stuff
closed - the marketers will probably be more intense and focused in the way they promote it, as they have to recoup their investment. fewer people might become affiliates, but more people might sign up.
The core question, i guess, is whether the loss in potential affiliates is offset by added revenue from affiliates who sign up just to be able to join the program. Do people actually sign up to join closed programs to become affiliates of the product?
FYI the product costs just $24, commissions can be as high as $20. It's single tier only. (Is this a mistake?)
Nick |
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AllanGardyne
Site Admin
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6326
Location:
by the beach, Australia
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Posted: Tue May 25, 2010 12:46 am
Post subject: Re: closed vs open affiliate program
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| mccloud wrote: | | Do people actually sign up to join closed programs to become affiliates of the product? |
In this particular case, by "sign up", I assume you mean pay for the product. Many affiliates wouldn't want to do that. They'd just look elsewhere for a program that didn't cost them anything.
If you had a closed program, I think you'd probably have to identify and contact potential affiliates and give them a free copy. That's what we did when we first launched SpeedPPC. Top performers these days expect to get a free sample to review.
As you probably already know, a lot of affiliates promote a product only once in an email blast and then move on to the next product. Ideally, you want to attract affiliates who will write reviews or buy PPC advertising and keep selling your product day after day for years.
In a closed program, top performers will be attracted by the fact that they're not competing with many thousands of other affiliates, and may be be prepared to put more effort and money into your promoting your product.
A big advantage of having a closed program and having only invited affiliates is that you don't have to spend time training newbies, teaching them how to put a link on a page, etc. And you shouldn't have any problems with scumbags who ignore your affiliate agreement. So you have more admin and training with an open program.
I've seen a few companies that started with a by-invitation-only affiliate program and eventually switched to an open program. I suppose it's always tempting to think that if you make the program open, the newbie you attract could one day turn into a high-performing affiliate.
| Quote: | | It's single tier only. (Is this a mistake?) |
No. One tier is fine these days. Most successful affiliates are going to be more interested in achieving sales than trying to sign up other affiliates. That's because program loyalty is such a fragile thing. Affiliates can put a lot of work into attracting sub-affiliates who then switch to the new latest and greatest product.
So, open or closed?
If you make it a closed program, you're always going to wonder what your results would have been like if you'd made it open.
If you keep it closed, it will be tidier, good for your branding, easier to manage and you should have happier, more experienced affiliates. If it's a roaring success, you'll find that more good affiliates will find you and ask to join, even if there's no obvious affiliate link to your program. You can't hide good marketing.
_________________
Allan Gardyne
AssociatePrograms.com - You're here. Explore it! |
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Tryme
Joined:
09 Apr 2007
Posts:
15
Location:
Tennessee
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Posted: Fri Jun 25, 2010 5:13 pm
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I'm sure Allan gave you good information and I think it's like throwing a hand full of rocks straight up in the air and wonder how many are going to hit you on the head.
It all depends on how hard the wind is blowing.
I associate having to buy the product with MLM and don't like it. If I think the product will benefit me I will buy it if not, no. I would never buy a product to have the opportunity to sell it. But on the other hand I can't really sell a product I wouldn't buy unless I had
good reason to think the product wouldn't benefit me.
| Quote: | | "open - more people like to promote it... but not as intensively, and our link and ads might end up sitting next to some pretty crappy stuff" |
You have a $24 product. I have seen some $197 crappy stuff. It doesn't matter where your product find itself as long as prospects are looking at it. You could probably set a bicycle on a caddalic show room and sell it and vise versa.
The main thing is get the rocks in the air. |
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