As you build your business, you definitely need to attract more customers to grow. I mean that's why you're busy building sales marketing relationships and creating content for social media, but what you're not doing is letting other people bring new customers to your store for you and in this article I'm going to do that. I'm going But I'll remove the curtain, that's just how to do it. [ Affiliate Marketing Program ]
I would be you if you had the tools and knowledge to build and grow your own business. In this article I am really excited to share with you the ins and outs of affiliate marketing, one of the most effective ways for you to have a complete sales and marketing team of real people who are on your online store without any upfront costs and complications. Drive traffic. is driving. Hiring employees.
What is Affiliate Marketing ?
If you have clicked on this article then you probably got an idea of what Affiliate Marketing is, but to put it in a nutshell, Affiliate Marketing is an incentive structure that encourages people to engage with the content. Usually social media influencers. Encourages creators and website owners to recommend you to their audience. Instead of earning a percentage. In other words, any actual sales you bring in will make money unless they help you make a lot of money first.
That means affiliate marketing is based on mutual incentive bidding, you want people to drive your business and products to you and those people want to earn extra money by making a percentage of the sales that they generate in practice,
You provide a way for people who sign up to receive a special link so that they share that link. When their visitors click on it and make a purchase on your website, the sale is recorded for both you and them in one dashboard so that everyone knows the result and commissions are automatically paid periodically Is. Is. People don't need to sign up and share links and filled in affiliate links do a lot of work in their favor. The program is set up so that you don't have to spend much time looking after the kids and the best part is that you don't pay your partner a dime, you pay them only when they understand you. But because affiliate marketing is commission based, first of all you have to be sure of your price and more importantly your profit margin is big enough that you will remain profitable even after paying the commission.
There is a concept called the double keystone that you can use to evaluate your pricing. A double keystone means that the minimum value of each of your products doubles at every step between manufacturing and the customer receiving it. Now it can only double if for example you are making a product that you are making a dining room table and selling directly to the consumer on your website, double the keystone if it costs you ten dollars to make the product. The rule means you need to sell each for at least twenty dollars and that is the minimum.
But let's say you have found a manufacturing partner to make your products and you not only want to sell directly to consumers, but you also want to wholesale to other stores. that they can sell for you too. If it cost you five dollars to make a partner it will at least double and you'll be charged at least ten dollars less what you pay other stores to sell wholesale to them. At least twenty dollars and they in turn at least double and sell to your customers who buy from your store for at least forty dollars. As a cyborg this means you quadruple your cost when people buy sweets directly from you. Not reducing your wholesale customers By considering the double keystone rule as the absolute minimum you ensure that your margin is sufficient to be able to support an affiliate marketing program.
How to Make Affiliate Program
Now that you have priced your products in a way that can support an affiliate marketing program, let's get into the good stuff of how to actually build a successful affiliate program. Since the incentive for your army of future allies is to make money, the first step is to make sure you create the conditions to make it attractive to do so.
Designing the Bare Bones of An Affiliate Program
Put yourself in their shoes. What they want is to earn more, so it stands to reason that you want to start structuring your program to promote the highest-grossing products for them because if that's what they promote. The commission in return for the value will also be higher.
You can have a hundred different products in your store for between five dollars and five hundred dollars if we use the example of a ten percent commission that is paid to your future associates for a five dollar item or fifty cents per sale of fifty dollars. will be more attractive to earn. Five hundred dollar item. Of course you can absolutely enable affiliates to earn your commission on everything in your store, but this first step is all about creating a program that will be attractive to people who want to become one of your affiliates. want to sign up for.
Here's a dig into some psychology. As humans are easily paralyzed by choice, we want things to be frictionless, so in terms of building an affiliate program we're looking at the ability to be one of our partners quickly and effectively. want to be able to communicate, so this is the first step about making the program jump out of it. Eh potential affiliates are creating communication materials so that it is as possible for them to sell to you.
I'm talking about being able to have a landing page that communicates things like hey you love our products and earn up to fifty dollars for every sale you bring us to the best you can. Can download or get started fast which includes gorgeous product shots and copyable messaging that includes the ability to offer your audience first order discounts and freebies.
Shipping on orders over a hundred dollars. Because of the way photos of download packs can showcase your high ticket items, these affiliates are psychologically anchored to earn more.
You are also making their promotional work flow easier by creating copy paste double messages. Finally, with customer incentives like free shipping and first order discounts, you're increasing the likelihood that their audience will soon place an order for both you and your affiliates to earn money.
So to summarize step one you are designing the bare bones of the program itself and want the communication material to be engaging and engaging to your future army of allies and more importantly proactive Would like to continue promoting our products. audience.
Step two is about building the actual commission structure and validating it with some math.
Building Commission Structure
Of course the more commission your future affiliates can earn, the more likely they will be more focused on promoting you, but you need to make sure the money makes sense.
For example let's say you are selling a jacket that costs you twenty dollars to get it from your manufacturer and you are selling it for one hundred dollars. When it technically sells you have eighty dollars left. But you need to cover your overhead costs like when you send it your salary and other expenses like yours Jackie will go to your office in packaging. There were paid ads and your year and accounting costs are taxed on all of them.
After your calculations you determine that all of them combined account for forty dollars from each jacket sale, so you have an additional forty dollars left over from that initial one hundred dollar sale.
You also determine that you want to keep another twenty dollars from each sale to the bank and invest it back in your business to help it grow, which means that you have money from that hundred dollars of sales. There are twenty dollars left to play with which you can allot twenty dollars or in this case twenty cent with such a convenient number. Things like discounts and affiliate commissions.
Since you are already planning on offering a ten percent discount to first time buyers, which means at the end of the day you can offer a ten percent commission to your future associates and you'll still be profitable, this That way the phantom example I just gave is a very simplified version and shouldn't be used as a baseline for you, you'll have to crunch your own.
Track ten percent commissions is a great place to start compared to popular affiliate programs in general, such as Amazon offering commissions as low as just one percent. However the best option for you is to search to see which of your competitors already offer an affiliate program and see what percentage they are offering their affiliates so that you need to be competitive. Get a basic idea of what needs to be offered.
And you can get really creative with your commission structure for example creating a tier system that rewards your future associates as much as they bring it in. For example you have five percent off for brand new affiliates. Silver can have a commission rate and once they mention five sales they get the gold commission rate jumps up to seven percent. And once they make twenty sales they rise to a diamond commission rate of ten percent.
Even though, in essence, you are essentially doing the math to see the maximum percentage you have to offer your affiliates and then decide on the commission structure that you will offer them and remember that the more you offer. The more likely people are to devote their energy to helping you promote your business.
Step three is when you really put things together as you will choose your affiliate management platform, Engine Deluxe keeps track of your program run and pays your affiliates.
Choose Your Affiliate Management Program
And we will not go through a detailed set up in this article as it is just an overview of building a successful program and there are a few different platforms to choose from and they are set up processes, albeit a little different all are intuitive to rise. and to run.
Basically all these management apps enable you to define your commission rates of the products you want to allow to earn commission creature sign up and approval process for new affiliates upload and store images and Affiliates write what you can download to promote so you can build affiliate links. They get credit for the sales they bring to it. And of course track the results.
Some of the popular ones include Up Promotion Reference and Lead Titles but there are many more that you need to know that all centrally do the same thing. Some distinguishing features are different tears which is up to you to decide. Whether you are or not, they all offer at least a free trial period while there isn't a free tier to start with. And how many more affiliates have signed up based on your needs.
Regardless, if I join then it is very easy to create and manage an affiliate program because many of these affiliate management companies have built robust apps to install in your shop or i store.
Generally once you really start getting affiliates you can expect to pay between around twenty dollars a month, but of course the veil scales in direct proportion to how well your affiliate program is performing. In other words what you end up paying monthly is a drop in the bucket compared to what you are actually earning through your sales. is bringing him.
It's definitely worth checking out when you've made it to step three of creating your own affiliate marketing program to help you make the best decision for you.
Start actively recruiting associates
Stepping up here is where things get exciting because now is the time to start actively recruiting your ally you want to start by determining who you want to be as an ally want to allow. This may sound strange because being new entrepreneurs the better we can understand ourselves. Let everyone join.
Do what you want the right people because the wrong ones will give you the best yield, which can result in you occupying a slot in your management but in the worst case can cheap or damage your brand reputation if for example The Internet is spam or doesn't align with the value of your brand. Some businesses choose to only allow people who have a social media clout.
There is a minimum number of followers or subscriber required on social media platforms to join their affiliate programs. Other businesses only allow people who have previously purchased their products and both love and truly understand their goods and values, so the message they are sending will be more genuine and trustworthy.
Ultimately it's up to you to decide, but once you do, here are five average ways to recruit associates.
The first way is via email. I mean you must have built an email list from your existing customers or those who signed up for updates and this is a great free and effective way to go about recruiting because everyone on your list either bought from you or very. At least has shown your brand interesting enough to sign up for the email
Way through Social Media
Another way is through social media. If you've ever had a business page and Instagram account, a Tik Tok page, a YouTube channel or anything else that already has eyes, you can create an entire campaign of posts to share the compelling reasons you're with. You came all the way. I can take a step. Social media is free and just like your email list there are people who have chosen to follow you, which means they are already interested in your products.
The path is right on your store's website
The third way is right on your store's website, whether you have a banner dedicated to a page that you linked in your navigation menu or footer or better displayed at the end of your check out sequence, so the moment you People buy your products, they are informed that they can make money by sharing what they have bought with their friends.
Specializing in Affiliate Network Sites is the Way
The fourth way is to specialize in affiliate network sites. There are a group like Sheriff's Sales and Rocker Ten Marketing, but inevitably these sites are flocked to people who are already doing affiliate marketing for dozens of brands. These sites enable you to post your affiliate program by product category, for example when a tube or someone who already specializes in affiliate marketing for your product category, on one of these affiliate network sites. Make your monthly visit, they'll catch wind of your new program and hopefully the fascinating program that you created in the first step. forces them to sign up.
Active Effective Recruitment
Finally there is active influencer recruitment, it takes research and will usually also require that you send product samples at your own cost, but inevitably you can scour social media channels like Tube and Instagram and already Can find mass manufacturers with future products. Access what you offer. Offering to send them some free products in exchange for reviewing them or featuring them in their content and enabling them to earn money through affiliate links that their visitors click,
By using any or all of these five strategies, you will be recruiting well-qualified brand alliances and passionate people on your way to optimizing this fourth step of the journey. Will earn money only if they have enabled you to earn money earlier.
How to Build a Successful Affiliate Program
The final step five to building a successful affiliate program is to track, manage and optimize your program. Although you can technically say it and forget it somewhat, the most successful Philly programs consistently measure the results they see to see which of their Phillies are bringing in the most sales and maximizing reach and profits. to constantly change its programs.
Maybe you learn for some reason I don't know why your colleagues who are women based in South America are consistently producing better results. Now imagine how much more you can bring in if you start building affiliate attraction landing pages and sign up sequences in Spanish.
Or maybe you find out that for some reason your colleague has increased income over the winter. Imagine how much more sales you generate if you give a small free gift with a purchase between November and January. Even an affiliate program can be tremendously powerful when you get extra commission bonuses on specific products for a limited time. Launch new products by offering Period you will encourage you. Or an army of collaborators to promote the exits of your new product launch to actually create some hype.