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  1. #1
    Newbie
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    October 1st, 2012
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    New Merchant looking for Affiliates
    I am new to this site and affiliate marketing in general.

    We are a new merchant and are currently taking steps to bring a product to market.

    What is the best way to find an affiliate to pay on a per sale basis?

    What commission structure should I offer? I know there is not set commission structure and it can vary, but should it be a % of gross margin? Should I have a tier scale?

    What can i do as a merchant to attract strong affiliate marketers?


    Thanks.

  2. #2
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by denegen View Post
    What can i do as a merchant to attract strong affiliate marketers?
    Be established with proven conversions before attempting an affiliate program...
    Salty kisses, Sandy toes, and a Pirate's heart...

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  4. #3
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    Quote Originally Posted by Convergence View Post
    Be established with proven conversions before attempting an affiliate program...
    Any books, newsletters, sites that have information as to optimizing my site for conversions?


    What is considered a "good" conversion rate? I realize it is very subjective and dependant upon the product, industry, price point, etc... but what if I am at 1% or 2%, would an affiliate still consider me?

  5. #4
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by denegen View Post
    Any books, newsletters, sites that have information as to optimizing my site for conversions?
    Not attempting to be crass - but these are things you need to figure out before even considering an affiliate program.

    Quote Originally Posted by denegen View Post
    What is considered a "good" conversion rate? I realize it is very subjective and dependant upon the product, industry, price point, etc... but what if I am at 1% or 2%, would an affiliate still consider me?
    Conversion rates do vary by product/industry/price points, etc. The more popular your site/offering is to your customers the more affiliates will be interested in you - as a general rule. There are BIG merchants out there that offer 1% commission and 1 day cookies - to some that's not attractive.

    Good place to start reading:

    Merchant Best Practices Forum - ABestWeb Affiliate Marketing Forum

    Help you understand what to strive for...
    Salty kisses, Sandy toes, and a Pirate's heart...

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  7. #5
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    Thx!

  8. #6
    Affiliate Manager
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    Hi dengen--

    you also might want to check out Geno Prussakov's blog and affiliate management book (just do a google search). When I started out as a new merchant, the information he gave was clear and concise and made sense for newbies (on the merchant/AM/OPM side) like us.

    Let me know if you need further help!

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  10. #7
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    Quote Originally Posted by TaylorBarr View Post
    Hi dengen--

    you also might want to check out Geno Prussakov's blog and affiliate management book (just do a google search). When I started out as a new merchant, the information he gave was clear and concise and made sense for newbies (on the merchant/AM/OPM side) like us.

    Let me know if you need further help!
    Thank you! Much appreciated

  11. #8
    Affiliate Manager AffiliateWarrior's Avatar
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    January 18th, 2005
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    Geno's books were both good and I keep them around for reference after managing programs for 13+ years. The best practices thread is good as well.

    I'd run your site on traffic from PPC and SEO for a few months for sure to make sure that your conversion process works and that people are interested in your products at the pricing that you have out there. If you have a retail product, get your products into the 2-5% range at a minimum for conversion before you look to fire up an affiliate program. Some homework on what your competitors are converting at and what their payout is will go a long way as well.

    When choosing your payout, make sure you pick one that is sustainable - I see a lot of merchants thinking they have to launch at a rate higher than their established competitors, and then coming back and dropping the rate when they realize that their offer isn't profitable. Choose a base offer that you can live with and give affiliates incentives to allow them to increase earnings as needed.
    Wade Tonkin - Affiliate Manager - Fanatics
    NFLShop.com|Shop.NHL.com|NBAStore.com|Store.NASCAR.com
    Email wtonkin // at // Fanatics.com

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  13. #9
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    Quote Originally Posted by AffiliateWarrior View Post
    Geno's books were both good and I keep them around for reference after managing programs for 13+ years. The best practices thread is good as well.

    I'd run your site on traffic from PPC and SEO for a few months for sure to make sure that your conversion process works and that people are interested in your products at the pricing that you have out there. If you have a retail product, get your products into the 2-5% range at a minimum for conversion before you look to fire up an affiliate program. Some homework on what your competitors are converting at and what their payout is will go a long way as well.

    When choosing your payout, make sure you pick one that is sustainable - I see a lot of merchants thinking they have to launch at a rate higher than their established competitors, and then coming back and dropping the rate when they realize that their offer isn't profitable. Choose a base offer that you can live with and give affiliates incentives to allow them to increase earnings as needed.
    Good info. How do I find out what a competitor site is converting at?

  14. #10
    Affiliate Manager Heidi Sturrock's Avatar
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    Quote Originally Posted by denegen View Post
    Good info. How do I find out what a competitor site is converting at?
    It's hard to know for sure, but the best way to learn about your competitor's program is to join it.

  15. #11
    Affiliate Manager AffiliateWarrior's Avatar
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    Most of the networks will show some stats on conversion rate, EPC, etc to affiliates to help them join the program.

    Your commission rate should be based on a percentage of sales less shipping/tax/coupons redeemed - so as a percentage of net sales. You want to put something out there that is attractive, but that leaves some upside for exceptionally productive affiliates, and that is sustainable for you.

    You can always increase commissions, but lowering them for productive partners will really whack your program's chances of success.
    Wade Tonkin - Affiliate Manager - Fanatics
    NFLShop.com|Shop.NHL.com|NBAStore.com|Store.NASCAR.com
    Email wtonkin // at // Fanatics.com

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