Running your own affiliate program can be viable business model and helpful to a number of other online businesses, publishers, and advertisers. However, it can be a difficult, time consuming undertaking that you must prepare for extensively. If you’re thinking about starting your own affiliate program, be sure to consider these five tips.
Before you launch any a business venture, you need to do your due diligence and make sure to do extensive planning and research. When it comes to starting an affiliate program, you should start your research by simply knowing about your customers and your competitors. Knowing everything about your customers will put you in a better position to know what to offer your affiliates. Knowing about your competitors will inform you about the qualities you should also incorporate in your affiliate programs.
Commissions are a major source of income for affiliates. You can either design your own commission model or use the existing three commission models used by most affiliate programs. These commission models are PPC (Pay Per Click), PPS ( Pay Per Scale), and PPL (Pay Per Lead). Choose a commission model which best suits your business. Most affiliate programs these days are working on Pay Per Scale model. It is completely your choice to opt for any commission model you like. Just choose wisely because the entire future of your affiliate program will depend on it.
The next step you should work on is setting up your budget. You need to consider things like the amount that you are ready to spend to attract new affiliates and the amount you are willing to give as payouts. You also need to set aside some aside amount for prizes and bonuses to your affiliates to keep them happy.
Running an affiliate program is not as simple as it seems. You need to think about things such as fraud orders and refunded orders and design policies to address these issues. Try to design a policy first before such things occur so that when they actually do happen you are well prepared to tackle them. Most affiliate programs do not make policies first and end up in chaos when such situations happen. So be smart and prepare yourself for every situation that can occur.
When you start your affiliate program, always try to keep your affiliates happy. You can keep your affiliates happy by giving them incentives, prizes, and increased payouts. You can also start competitions to keep them more involved. If they are happy then your chances of success will increase. So always try to keep your affiliates happy.
Inbound Marketer / Content & Digital Strategist, Blogger @ExpressTribune, LinkedIn Author