Issue  - January 2006

 


"Affiliate Marketing: Getting Bigger and Better" In a recent survey 19% of leading Internet retailers revealed that 31% or more of their online sales came through their affiliates.

Of those surveyed, 22% said that affiliates are responsible for conversion rates of 5% or more!  The important factors for Affiliate Marketing success centers around recruiting quality affiliates and operating a very transparent program.

Affiliates want to be sure you're not using spyware or other technology that might irritate their clients or prospects.  A much better model to follow is to let prospective affiliates know that you must approve them, rather than simply accepting anyone and everyone as an affiliate.

That's not say that BIGGER isn't BETTER.  It is and it isn't.  A recent survey of online retailers operating affiliate programs revealed that 12% operate an affiliate program with more than 10,000 affiliates.

From the survey, the results showed 35% with less than 250 affiliates and nearly 25% with 1,001 to 5,000 affiliates.  The reason for this recent surge in Affiliate Marketing interest is the continuing consumer concern about email spam and privacy issues.  And there is the cost of paid search marketing.

Here's what's working best:  Higher commissions paid to affiliates who perform better is a tactic used by 65.2% of those surveyed.  Another tactic working well is to offer early access to new products to the better-performing affiliates.  This is working for 75.5% of the surveyed online retailers.

Making your affiliates accountable is also important.  Keep your flow of information to them consistent and timely.  Ask them what they are using to promote your product.  Provide them with "tools" and training which directs them step-by-step to take a proactive approach to marketing your products and/or services.

There's no question about it.  Affiliate Marketing is getting bigger and better.

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Michael Penland