Joining Affiliate Programs

In preceding articles you have learned about affiliate advertising and search marketing, and you have even begun joining some affiliate networks. Now it’s time to go a step further and learn how to search for, choose, and join individual affiliate programs. Before you get started joining these programs, I want to talk a little about what you should look for in, and what you should know about, different affiliate programs.

WHAT TO LOOK FOR IN AN AFFILIATE PROGRAM

When you are looking for an affiliate program to market, you’re better off starting with a product you know about and are familiar with. When the time comes to start writing your ads, personal knowledge of the product or service you are marketing is a big advantage.

Be Knowledgeable about the Product or Service

As you search for potential affiliate programs to join and market, keep in mind that the more you know about the products or services offered, the better. This is especially important when you are new to the business. The more you know about the product what people like or dislike about it, how it compares to competing products in price, performance, and value, and what sets it apart from the competition the easier it will be for you to write effective ad copy and identify the appropriate keywords and phrases to trigger these ads. As you become more familiar with this process, you may eventually be able to rely on your own research to educate yourself on potential new affiliate programs, but in the beginning, when you have so much else to learn, it will pay to focus on products and services you already know quite well.

Be Knowledgeable about the Affiliate Program

Make sure you have a clear understanding of all aspects of the affiliate programs you advertise before you start running ads. Commission structures, payment methods, and a host of other concerns should be addressed before you actually start paying to promote any affiliate program.

Commission Structure. The most important of these concerns is, of course, the commission structure itself. Make sure you know what your goal is. More specifically, make sure you know what the affiliate program will pay you for, and how much. Will you receive a percentage of sales or just a percentage of revenue? (Revenue is the net profit on the sale, not the entire sale price.) Are you paid for downloads, form completions? Are your commissions tied to paid memberships or free registrations? Speaking of registrations, will you be paid for each registration or only for those that go on to become active members? Does the program have performance tiers or bonuses, and, if so, what must you do to trigger them?

Payment Terms and Methods. The standard in the industry is for advertisers or affiliate networks to issue payments every 30 days. If you see terms that specify 60 or 90 days, you should be aware that you will be spending on advertisements for up to three months before you ever see a dime in return, and you need to plan accordingly. Do the companies with whom you do business charge for payment by check? Do they offer direct deposit? As a general rule, search marketers, including myself, prefer to receive payments in the form of electronic fund transfers that go directly into their checking accounts. Most advertisers and networks will allow this, as well as the option of receiving a check in the mail, but they generally charge extra for mailing a paper check.

Minimum Balance for Payment. Almost all advertisers issue payments only when the affiliate has reached a minimum level (often $25). Many offer lower limits for direct deposit than they do for checks.

Provisions for Rollovers and Carryovers. Rollovers and carryovers occur when an affiliate doesn’t meet the minimum balance required to receive a payment.

Payment for Returning Referrals (Referral Period). Sometimes, you’ll refer customers to a site who won’t buy anything right away. They’ll look around other sites and make a purchase on a future visit. Look for programs in which merchants have a referral period during which they will issue you a commission if one of the people you have referred makes a purchase on a future return visit.

Chargebacks and Returns. Chargebacks and returns are the bane of all retailers, but they are a fact of life. The person who buys something as a result of a referral by you might well return it eventually. Most merchants have a chargeback period a period of time in which the customer can return the product for a refund. If so, your commission will be debited. Merchants who have a return policy tend to have a better conversion rate, because consumers are more likely to buy from them. But the same policy might result in your commission being taken away if the item is returned. There’s nothing you can do about such a policy, but it’s good to be aware of it so you aren’t surprised when a percentage of your commissions are eventually reversed.

Quality of a Company’s Online Presentation. Would you buy a product from the company you advertise as an affiliate? You should refer to merchants that have an effective online presentation lots of photos, clear information about brand names, model numbers, sizes, colors, and other variations, and a clear purchase path. The purchase path is the path that leads from the product description page to the checkout area. Don’t send customers to a site that is loaded down with lots of intrusive pop-up ads and other distractions. These distractions will lower your conversion rate. Also, know whether your affiliate program offers special discounts and promotions. Besides inducing purchases, you can mention those incentives in your own affiliate ad.

Quality of the Merchandise. Affiliate advertising is an impersonal thing. It’s not like going into a retail store and testing the merchandise to see how it feels and looks. It’s actually easy to lose sight of the fact that you are promoting real products and services. But quality is something to keep in mind when you are choosing products to promote. Just imagine how you would feel if you were referred by a web site to a product that turned out to be of inferior quality? Poor quality or overpriced merchandise is more likely to be returned. Check for testimonials and references from existing customers to find out about the quality of goods.

Reputation. Obviously, you don’t want to strike up a relationship with a merchant that isn’t going to pay you on time or one that has generated a slew of complaints from other customers and affiliates. If you sign up with an affiliate program through a network, chances are you won’t run into many bad apples. Nevertheless, you should try to avoid merchants who already have a bad reputation. If you can find other affiliates (through a discussion board or newsgroup) who use the merchant, ask about that company’s reputation.