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February 15th, 2014, 12:41 AM #1Test, Do I have to pay for this?
Tried to start a thread in Finding Niche Merchants. Typed out a lengthy post to get greeted with an option to pay for it. Is there a free place, other than Midnight Cafe, I can post for free? Although since I lost the post I'm not sure if I'll try again.
I know things might have changed since I was last here. Didn't know paying to post would be one of them.
February 15th, 2014, 08:10 PM #2
February 26th, 2014, 01:59 AM #3
Hey Chuck, took a few days off. I know my last appearance wasn't graceful. Well this wasn't either but I took time off instead of just expressing my feelings like last time (new layout, etc).
And this can stay here, or go anywhere. I was just looking for answers.
Basically my question was how to try and convince a merchant to start an affiliate program. Wanting to move into a niche with a large base, dozens of merchants, but none (other than one I could find) with an AP. And it only fits 1 part of the 2 groups I was going to target.
The group in these 2 followings buy. And buy like crazy (fanatical groups, broad -- If it relates to X or Y, they'll buy something related). The merchants probably sell, even though most are really small time merchants. So trying to convince them to pay others would be hard. They fill the need but I don't know the margins.
Was looking for some key things I might be able to give them to at least think about it. Was going to build a somewhat extensive site around at least 1, if not both, of these niches. But the programs just don't exist.
Or since there are so many without an AP, maybe offer a pay-for-place deal? But even I don't know how they'd go for that.
February 26th, 2014, 10:54 AM #4
The panacea in justifying an affiliate program is to have motivated affiliates lined up and ready to go. I generally pitch 25% cost of sale all inclusive for affiliate sales. If they have that kind of margin then it makes sense to proceed. Of course the biggest part of the gross margin is the affiliate commission. If they are selling at 5% margin the would you be able to promote at 1 to 2%? That's the tough part until you get them on the call and screen the opportunity. Recommend leading with the opportunity that you would be interested in selling their products via an affiliate relationship.
February 26th, 2014, 11:50 AM #5
February 26th, 2014, 12:18 PM #6
I frequently see two objections.
Channel conflict with dealers/wholesalers. "Those are the ones that built the business and we aren't going to compete with them."
Lack of understanding of how an affiliate program works.
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