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October 14th, 2010, 12:41 AM #1
New Merchant With Questions
- Join Date
- October 13th, 2010
Hi everyone. I am new. My name is Robert. I have a company that develops mobile phone software and we are at the point where we would like to look into providing an Affiliate Program. Like many people before us we came upon this forum and have more questions as we read through it than when we first came. So here goes in case anyone has the time and knowledge to respond.
1. We have an affiliate module for our own Estore. Is this ok or do we really need to go through an affiliate aggregate for lack of a better word like CJ? The module is pretty robust and affiliates can log in to check their accounts directly/receive email receipts when user's purchase under their affiliate code, direct referral affiliates codes as well as links, etc. So from a technical point of view let's say it covers the affiliate basics at the least and maybe some extras that other aggregates may not cover like the affiliate coupon codes.
2. We are obviously more concerned about nexus laws now that we know about them. Would it be wise to model our program after say one of the aggregate programs or a major player like Am@email@example.com? If we take out the states with Nexus laws would this be ok to start with or should we just not get into this at all at this point in time with laws and legislation as they are. How are the other affiliate programs getting away with it if there are the nexus issues these days. do they just stay away from those states or is there more required.
2b. do we add our own physical location state to the exclusion list? we should by default right.
3. what are the typical choices for payment options? our bank will charge erronious fees for direct deposit so we are looking at paypal for US/International with check as option for US affiliates since we are US based.
4. what is the typical payout period for affiliates. 30 days after a sale? 45 days, 60 days, less than 30, etc. aka what is the typical norm for say the aggregate affiliate sites. for instance most customers use credit cards to pay for our software. typically they have 30 days to dispute this so to pay before this time may become a headache later on (even though we have a very small return rate if we increase exponentially because of affiliates this will increase exponentially along with it). We want to pay in a timely manner while protecting everyone involved so there are no disputes, misunderstands, etc. later on.
5. is it ok to have a flat % for affiliates or is it better/more incentive to have a tiered % based on total # of units sold per payment period.
6. whenever we read on affiliate programs/information they always list links and banner links. what if we have an affiliate code in addition to this that people can use say as an affiliate sale registration on our Estore. i.e. the customer can just plug in the referral code as the affiliate code and the affiliate can get credit for the sale that way also. is this ok? any legal issue with this option?
hopefully this was not too much to ask for starters. thank you in advance.
October 14th, 2010, 11:18 AM #2
Hi Robert, welcome to ABW!
So many questions so I'll give you a condensed reply.
1. You could do both. Some merchants have an in-house program and one on a network (CJ, SAS, etc.). In-house can be cheaper since you're not paying out network fees (and could pay your affiliates more) but you lose the opportunity of exposure a network can offer. In-house can take longer to get up and running A) If you're not a big name affiliates know about. B) There aren't thousands of people logging into your network every day (like they do on CJ, SAS, etc.). If you're new to affiliate marketing, and it sounds like you are, start with a network first.
2. A million dollar question. The bottom line is how much work are you willing to do for business in X (state)? If you're serious about doing business in states with nexus laws work out the way to deal with it and help fight such laws (there's an entire section for this). Each state you exclude means one more state you're not earning from.
3. A network program takes care of this.
4. The major networks pay 30 days. The amount of time the transaction locks varies. When it locks you can't reverse it. Figure your reversal rate into your commission payout.
5. Yes. You can pay a percentage and reward for total number or total sales. Research your competition.
6. If you're using both cookies and this "code", it could enhance the affiliate's chances of getting credit for the sale. It's more work though and needs some thought. For example, if the cookie is from Affiliate B but the code is from Affiliate B, who gets paid? Some programs track exclusive coupon usage.
Good luck with your program!
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