Establishing an affiliate program is a powerful way to expand your reach and increase sales. However, creating an effective program requires careful consideration of key elements. Here are four essential tips to guide you in building a successful affiliate program:
1. Choose the Right Cookie Length
Cookies play a crucial role in tracking affiliate-generated sales. The cookie length determines how long the system will recognize an affiliate’s influence after a potential customer clicks their link.
While standard options include 7-day or 90-day cookies, consider offering lifetime cookies. This means the tracking code has no expiry date, benefiting affiliates by ensuring they receive commissions on sales made at any time in the future. Communicate the chosen cookie length clearly to your affiliates to manage expectations.
2. Set a Motivating Payment Threshold
Decide on the threshold an affiliate must reach before receiving commission payouts. While $50-$100 is common, offering a lower threshold, such as $25, can motivate affiliates by allowing them to access their earnings more quickly.
A lower threshold provides a sense of accomplishment and encourages affiliates to remain active in promoting your products or services.
3. Determine the Affiliate Attribution Model: Last or First Affiliate Wins?
Choose between the “last affiliate wins” and “first affiliate wins” attribution models. In the standard last affiliate wins model, the affiliate whose link was most recently clicked before a sale receives the commission. On the other hand, the first affiliate wins model awards the commission to the affiliate whose link was clicked first.
Clearly communicate your chosen model to affiliates, ensuring transparency and preventing misunderstandings.
4. Decide on a Competitive Commission Percentage
The commission percentage you offer plays a significant role in attracting and retaining affiliates. In competitive niches like Internet Marketing, many affiliates seek programs with at least a 50% commission.
Offering higher commissions, such as 75%, can make your program more appealing. While high percentages are attractive, balance is essential. If you have substantial costs, such as physical product production or high overheads for a service, you may need to offer a lower commission.
Clearly explain your commission structure to potential affiliates, highlighting the value they receive for their promotional efforts.
Building a successful affiliate program involves thoughtful consideration of these key elements. By choosing the right cookie length, setting a motivating payment threshold, determining the attribution model, and offering a competitive commission percentage, you can create an attractive program that benefits both your business and your affiliates.You may also like:
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