Setting Up An Affiliate Marketing System
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By :
Software Ultimatum
Submitted
2010-06-29 19:37:23 |
Setting up your own affiliate system can be either simple or overwhelming, all depending on how many affiliate marketers you want to recruit, as well as your transaction policy and the type of product that you are offering.
As for your affiliate systems, there are 2 solutions for your business - outsource the complete system or run your own affiliate system through your own web host. Each one features its own advantages as well as disadvantages.
If you have a little amount of affiliate marketers, then you can run your own affiliate software. If you plan to recruit a big number of affiliate marketers, then you will almost certainly want to outsource. The reason for this, is because you will find it easy to deal with a huge number of sign ups, track payments, monitor clicks, etc.
There are many types of affiliates out there to choose from. There's the pay per sale, there an individual is paid only if a sale is generated from the affiliate's link. It's the least attractive to people, unless the product is in high demand and the most valuable for business.
Another type is the pay per lead, where you pay only for traffic. With this type, the affiliate is paid only if a visitor is generated from the site of the affiliate. It's attractive to affiliates even though expensive to web site owners due to the possibility of non sale visits.
Considerations when setting up an affiliate, something to consider is whether or not you'll approve affiliates manually or automatically. It's normally recommended to start affiliate programs with your established customer sites then progress to new ones.
If you are dealing with pay per clicks, you might have to control the affiliates as the quality of visitors will be a gigantic issue when it comes to the generation of sales. By manually reviewing, you'll also be able to judge the site or individual affiliates to see if it's in the best interest of your company.
If you choose to use your own affiliate system, one of your biggest issues will be how to pay affiliates a percentage of what you end up receiving from customers. To do this, you can rely on software such as Affiliate shop to help you track and manage commissions.
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