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Share the Wealth and You Will Prosper
By Ron Douglas
One of the most effective ways to
dramatically increase your profits is starting an affiliate program.
This powerful marketing strategy has taken the Internet by storm.
According to Forrester.com, affiliate programs will account for 20%
of all e-commerce sales by 2005.
An affiliate program enables other
marketers to promote your products for you in exchange for a
commission. The most common type of affiliate program is the pay per
sale program, where affiliates only get paid when they bring in
sales. You can determine what percentage of the sale to pay your
affiliates. It’s like have an experienced sales team working for you
that you only pay when they generate revenue.
Consider this example:
* Your product sells for $50 and you
decide to pay out 60% (you’re pretty generous ;-) to your
affiliates.
* You have 10 affiliates each averaging
only 3 sales per week (conservative estimate).
How much will you earn at the end of the
year?
Ok, at 60%, you’re paying out $30 per
sale in commissions and keeping $20. That’s $60 per week (3 sales at
$20) x 10 affiliates = $600 per week. Multiply that by 52 weeks and
you’re cashing out at an extra $31,200 per year from the efforts of
10 affiliates making only 3 sales per week.
What would you do with an extra $31,200
per year or more?
Affiliate programs are hot right now and
everyone is looking for new products to promote. Whether you have
many affiliates averaging a few sales each or a small number high
powered affiliates generating a plethora of sales, you can't go
wrong when you're profiting from the money-motivated efforts of
others.
Anyone can start an affiliate program,
but there are several steps you need to take to have a wildly
successful program.
Your key strategy is to get influential
people to help you promote your product. You want your affiliate
program to be as attractive as possible to potential affiliates.
What do affiliates want?
* Affiliates want to feel confident
they will be paid accurately and on time.
* Affiliates want to have real time
access to view their commissions and stats
* Affiliates want their promotion
efforts to be as easy as possible, which includes having access to
pre-scripted and tested marketing tools that work.
* Affiliates want to earn a high
payout for their promotion efforts.
* Affiliates want to promote products
that are in high demand and will convert into sales.
The more you can give them what they
want, the better your chance are of attracting new affiliates who
will blow your sales through the roof!
In my new book "Cracking the Internet
Marketing Matrix," 14 Internet Marketing Pros provide you with step
by step instruction for launching your affiliate program and finding
new affiliates. You will also learn where to get free resources such
as banner creators, cgi scripts for tracking your affiliate program
in house, and much more -
http://www.rondouglas.com/matrix.htm
To Your Success,
Ron Douglas
http://www.rondouglas.com |
