Affiliate programs are an ideal way for entrepreneurs to make more money with their product or service. An affiliate is essentially a salesperson for your business. For every sale your affiliates make, you pay them a commission. The more affiliates you have, the more likely you are to take in bigger profits. In fact, affiliate programs can be extremely profitable for both you and your affiliates, especially if you follow several simple steps to create your affiliate program.
Identify your target market. You must know who your target market is, including such vital information as an average level of education and physical location, if you want to properly market your product or service.
Set a commission that you will pay your affiliates for each sale they make. You must make the commission high enough, typically no lower than 50 percent of the sale price, to make it worth an affiliate’s time to promote your product or service.
Decide who is eligible to become an affiliate. For instance, will you allow anyone from anywhere in the world to join your affiliate program, or must the person reside in the United States or in North America?
Determine whether you will provide your affiliates with a website that is identical to the one you are using to sell your product or service or whether they will have to create a Web site themselves to promote your product or service. Providing them with a web template will make it much easier and much quicker for them to start their promotional efforts.
Make it easy for your affiliates to promote your product by providing them with content for their website and to use when marketing and by offering them banner ads, in different sizes, they can display to advertise your product or service.
Begin finding affiliates. There are numerous ways to find affiliates, including adding a link on your website that will directly take those who are interested to your affiliate sign-up sheet, using pay-per-click advertising like Google AdWords and Yahoo Search Marketing and emailing prospective affiliates with whom you are interested in partnering.
Continue to recruit affiliates as you can never have too many affiliates, and you never know when an affiliate will decide to stop promoting your product or service. Remember, the more affiliates you have, the more money you are likely to make.