You've already setup an online store, put up a few of your advertisements, & now you waiting for the millions of people to come to site & buy, buy & buy? If so, unfortunately this is not going to work as there are lots of new products, & shoppers who are continuously bombarded by competing ads everywhere they click. So you must try something new. You must try an affiliate marketing company, which creates or is creating affiliate blogs in difficult niches. Affiliate marketing is as simplified as paying somebody (usually a company who runs affiliate programs, a popular website, or even an individual) to send great and qualified visitors to buy your product. When a product is bought, then that somebody receives a commission from the sale of that product. So if you need to build an affiliate marketing program, here are a few things which you should focus on from the start:
1):- Know how much to spend per lead: You should understand how much revenue & margin that you think you are going to make per each customer lead before you can start some negotiations on how much you'll pay in affiliate commissions.
- If you will be selling any physical product, then use the cost of the product & retail price to find gross margin. That margin is what you sacrifice with affiliate fees to gain total unit sales & an increase in revenue. Plus, if you know your own margin & your expected return rate, an early planning is going to keep you margin positive even at a high sales velocity.
- If you will be selling a subscription product, you must understand how long the average subscriber is going to stay subscribed & how much that subscriber is going to pay per month. This understanding can provide a higher maximum amount which you can spend per customer while maintaining a profitability.
- If you will be selling a free-to-play mobile game which has almost zero download cost but in-game virtual it is good enough, you must be very good with your data. You can also determine how many days an average player keeps playing your game & how much & when that player pays for in-game items.
2):- Know where affiliate partners are advertising: It is good to set few simple rules for what each partner can do & where they can advertise, otherwise it is like paying a company to compete with yourself, & that means you'll be always paying for the most expensive option than the most cheapest.The right thing to do is always ask your each new partner for screenshots of your placement. Understand what kinds of placement you're getting on their networks & understand what tools they're using. You should also ask for what kind of demographic audience they're targeting for your product.
3):- Measure results daily: Even with some solid affiliate partner, we believe that there can be some problems at times with their data, & comparing their data with your tracking data becomes so important. Not every partner site is as transparent as they should be, & it is important to see if there are bad or good trends in the sales data by partner. If any of your affiliate partners goes from 11 to 12 sales per day to 1100 sales on a random Wednesday, you must first check if everything looks right or whether there are data errors. If it is a real improvement, see if those new customers are also behaving like the long-term 11 to 12 sales per day. If it looks profitable, open your budget & see if you can again replicate that success by getting 11,000 sales from them.If those new 1100 sales look like customers who are not the same quality as the typical 11 daily, it might be in the best interest of yours to shut it down rather than deal with 3000 unprofitable customers by Friday & 5000 by Monday. Don't forget, you're paying for them, so spend your money on the right and good customers.
4):- Build nice relationships: There are lots of elements about trust in affiliate relationships. As any buyer of these services, you must make sure that you can pay in a timely manner. Work with finance, or with whomever is running finance, to understand well how much you can spend. Set up payment terms which are reasonable, like net 40 versus all pre-paid, & make sure that the affiliates with whom you work can agree with that schedule.
Spend the time cultivating the best partners & cut non-profitable dead weight partners. It is so easy for a partner to promise a performance or lead number, but it is far more hard for them to deliver those customers in volume, & again that is why you want to be the buyer who they want to work with long-term. It is a marathon, not a sprint.
At last if you've done your affiliate marketing correctly, you'll have found new channels to reach those millions of customers who're perfect for your product.