Affiliate Marketing Program

Affiliate marketing is also called “performance marketing”, in reference to how sales employees are typically being compensated. Such employees are typically paid a commission for each sale they close, and sometimes are paid performance incentives for exceeding the target.

Payouts are the most significant factor evaluated by affiliates. Therefore, they are an important consideration when developing an affiliate program. There are basically three payment structures to consider for an affiliate program – pay-per-click, pay-per-lead and pay-per-sale.

Pay-Per-Click – Each time someone clicks on a site through a banner ad, text link, graphic or other access point from the affiliate’s site, will pay the affiliate a fee between $0.02 and $1.00.Pay-Per-Lead – When a potential customer clicks on a banner ad, text link, graphic or other access point from the affiliate’s site, a form comes up, which asks the customer to complete and send. Each time a completed form is sent, the affiliate is paid a fee – usually a flat rate. Pay-Per-Sale – Also called a revenue sharing program, the affiliate is provided with a percentage of the profits when they make a sale – usually between 10 percent and 25 percent. Larger companies may pay more.

If the objective is to increase the awareness of the site and bring more sales then it makes sense to pay to affiliates with a combination of the pay-per-click and pay-per-sale commission structures.

The success of your affiliate marketing program will depend on the usefulness of the data from the tracking software. Tracking software is the foundation of the affiliate marketing program and should provide insight into many areas of business. Tracking software will enable to build and manage thousands of marketing partnerships, spend more time in improving the business, and convert more visitors into buyers and support affiliates to improve their performance. The primary objective of the affiliate program is to increase the sales level. Through proper incentives can perform more outcomes in an affiliated program.

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