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: myaffiliateprogram.com.