Understanding affiliate marketing is quite easy. Now that you know the basics of what constitutes this type of marketing through the previous sections of this course, we can now explore more about what options you have when it comes to affiliate offers. You will find a couple of basic categories, and most companies will fall into one of those. We will discuss each type so that you can see which one is going to fit your needs the best.
Product and Service Marketing Offers
As you can probably guess from the name, this type of offer is used to send customers to ecommerce sites where they will be able to buy your products or sign up and pay for any type of service that your company might be offering. In this type of offer, the customer is going to be paying for a product or service. Your customers will also be able to get more information about what you are offering through the affiliates. This is the classic type of offer that many people think of when they think of affiliate marketing, but it isn’t the only one.
Lead Generation Marketing Offers
With this type of offer, your affiliates are gathering leads for you. They will use things such as newsletters, email sign ups, or even surveys to help gather those leads that your company will then be able to use to help generate sales. One of the other ways that some companies are gathering this information is by offering free e-books that their affiliates will be able to offer to visitors. By signing up for the e-book, the affiliates gather that information and funnel it on to your sales team.
Pay for Your Affiliates
If you want to have a great affiliate program, you are certainly going to need to know how you are going to pay your affiliates, and you want to offer them a fair amount. You will find that when you are able to offer competitive pay for their services, you will start to attract better affiliates that will be able to help you grow. The best way to determine the price that you are going to be paying for your affiliates is to look at similar programs through the affiliate networks to see what the market price currently is.
Of course, when you are determining how much you are going to be paying your affiliates, you are also going to want to make sure that you are still going to be profitable. Determining your profit shouldn’t be difficult. For example, if you are selling a product for $20, and it costs 10% of that, or $2 to make the product, you will want to make sure that you are giving your affiliates enough to keep them happy and so that you will still be making a high enough profit on your products.
You also have to determine what constitutes a payment. For example, cost per conversion, or CPA, means that you will pay a flat fee per product sold. Cost per sale, or CPS, means that you will provide your affiliate with a percentage of the total sale. You can also choose hybrids, such as a CPA plus CPS, so they receive both. Cost per click, or CPC is a payment that you give to affiliates for each click that comes to your site through their efforts. A similar option is cost per thousand impressions, or CPM, which pays your affiliates for every thousand impressions they have.
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