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  1. #1
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    Starting an Aff Program
    Hello,

    I am planning on launching an Aff program soon through one of the well known networks on this board. I would really like to get some feedback on an angle that I am pondering and I am sure I came to the right place .

    I will be selling inkjet cartridges but I am seriously thinking of just selling the low end cartridges to start out with because I can offer a decent commission, and keep the price low since profit margin are high on the lower end items.

    Unfortunately the drawback is a limited amount of products. I am just wondering if I can get some opinions on this strategy?

    Thanks,
    Rob

  2. #2
    AM Navigator Geno Prussakov's Avatar
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    Rob, welcome to ABW!

    Inkjet cartridges is an area of affiliate marketing with quite a few big players involved and a lot of competition going on. So you definitely want your affiliate program terms to stand out. "Decent commissions" coupled with competitive prices sound like the way to go.

    As for the "limited amount of products": what's the worst scenario for orders placed for backordered items? How long the wait?

    Honestly, I would recommend keeping an eye on your stock, and aiming at replenishing it when you're about to run out of some cartridges. Quite a few of your competitors are dispatching orders within 1 business day, and you don't want to look worse than they are.

    Geno

  3. #3
    Moderator MichaelColey's Avatar
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    I don't think he's talking about a limited quantity of inventory (i.e. only 10 of a specific product) but rather a limited selection of inventory (i.e. only 100 products rather than 1000). This happens in some niches.

    Why not build two separate stores, one with just high margin items and a very high commission and another with a large selection of products and lower commissions (or different commissions for different groups of products)?
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
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  4. #4
    OPM and Moderator Chuck Hamrick's Avatar
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    If the competition is fierce you will have to make your launch focus to key on your competitive advantages. Make sure your online PR is tied to that and launches prior to the network launch. Affiliate are sophisticated and will check your program via Google. If you are no where then they most likely will pass.

  5. #5
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    Hi guys and thanks for your answers!

    I don't think he's talking about a limited quantity of inventory (i.e. only 10 of a specific product) but rather a limited selection of inventory (i.e. only 100 products rather than 1000). This happens in some niches.
    Thats exactly what I mean.

    If the competition is fierce you will have to make your launch focus to key on your competitive advantages. Make sure your online PR is tied to that and launches prior to the network launch. Affiliate are sophisticated and will check your program via Google. If you are no where then they most likely will pass
    .

    The site is new so I guess I should wait a little while.

    One other thing I was wondering: I have a competitor that is very visible at Adwords. They are using the same supplier that I am. They have a flat shipping rate that I would not be able to compete with if I payed a decent commission.(they don't have an affiliate program) Do you think I would be able to get sales if I had to price shipping at cost and not the low rate that my competitor is offering?

    The good new is I am able to keep prices a little lower than some of the big guys operating from CJ.

    Thanks again.

  6. #6
    OPM and Moderator Chuck Hamrick's Avatar
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    If the site is new you need to get your conversion numbers up before launching a program. If you have poor conversion and get a sizable affiliate they will leave it it doesn't convert. Then you have burned a future opportunity.

    If you can offer free shipping versus the competition not only will you be able to advertise that you will also draw a category of affiliates who work on those types of links.

    Never launch an affiliate program that is not converting. Super affiliates know to ask what the conversion and average order size is. If you can't answer that they they will pass.

  7. #7
    AM Navigator Geno Prussakov's Avatar
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    Quote Originally Posted by MichaelColey
    I don't think he's talking about a limited quantity of inventory (i.e. only 10 of a specific product) but rather a limited selection of inventory (i.e. only 100 products rather than 1000). This happens in some niches.
    My bad... Had too little time to read and reply. Note to self: never reply in a hurry.

    Quote Originally Posted by MichaelColey
    Why not build two separate stores, one with just high margin items and a very high commission and another with a large selection of products and lower commissions (or different commissions for different groups of products)?
    I would exclude the "large selection of products and lower commissions" one and go with these two: (1) Limited inventory of high commission items and (2) Larger inventory where different groups of products have different commissions. I've seen merchants in this particular vertical doing exactly the latter.

    Quote Originally Posted by someguy
    ...The good new is I am able to keep prices a little lower than some of the big guys operating from CJ.
    That's cool, but keep in mind that some of the "big guys operating from CJ" are owned by CJ, and will be very hard to compete against unless your store really converts (see Chuck's post)

    Geno

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