Affiliate Marketing Library

Ahh …. Remember the good old days when you could just take your time and enjoy the scenery. You just wanted those moments to last for ever.

Well that’s the same sort off feeling you can derive from a successful Affiliate marketing campaign. You don’t believe me! Just take a shot at it.

CONSIDERATIONS:

When setting up an affiliate program there are many things to consider such as the payout, cookie duration, payment threshold, when to send checks, payment types, number of tiers, and what type of campaign to run.

1. Pay out- The first thing to consider when establishing an affiliate program is just how much to pay out.To do this, one must establish an acquisition cost threshold (ACT) to ensure that profit margins remain reasonable. To establish this threshold, one must take the total profit margin per sale and decide how much of this margin they are willing to pass on to affiliates.

2. Cookie Duration- The next factor to take into account is the cookie duration. A cookie refers to a small piece of code that is placed in a visitor’s web browser. It stores information about the visitor for tracking purposes or for customizing the web experience.

In the case of affiliate programs, a cookie is responsible for determining whether or not an affiliate will be credited with a referral upon the visitor’s return to a website after their initial visit, and how long after their initial visit they will be credited.

3. Payment threshold- The payment threshold is another indicator for affiliates as to whether or not the merchant is trustworthy and views the affiliate relationship as a win-win partnership.

A high payment threshold will deter new affiliates. Quite simply, the sooner they are paid for their efforts, the sooner they will trust the merchant and give their loyalty to the program.

High payment thresholds single out smaller affiliates and act as a red flag for more experienced super affiliates who will see this as a merchant finding ways to squeeze more money for themselves out of the relationship. Thresholds should be set at no more than $50 and preferably at $10 or less. The faster affiliates receive a check, the faster they will produce.

4. Tier Architecture- The next thing to decide is how many tiers one would like their affiliate program to have. Most programs have one or two tiers. The first tier represents a direct referral from an affiliate to the merchants website where a purchase takes place. This is the main commission or first tier. A second tier commission refers to when an affiliate refers another affiliate to signup for the program. After this referral, the affiliate who referred the new signup will get a percentage of all of the sales the new affiliate accrues.

Peter has an extensive knowledge of Internet Marketing and loves to write about it. He manages many campaigns on different levels as his articles states. The website he has develops is there to help anyone who needs it.

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