Affiliate Program For Merchants

Filed under Affiliate Program, Business Marketing, Business Resources, Internet Business, Internet Marketing, Marketing Tactics, Viral Marketing

How much time can you have in a day?

24 hours, of course.

How much effort can you put in a day to market your web site?

This can be a lot, depending on your attitude and knowledge – but it’s usually not enough.

So how do you multiply your time and effort in a way that will make you more money?

Easy – you find others who are willing to put in the time and effort with you.

And why would they want to help you here?

They’ll do it usually for money or compensation of some kind.

But usually for money.

Which is good for you, since it’s usually very easy to send money to them.

So you’ll have to hire them to help you out without knowing if they’re as good or better than you are?

Well, you can pay them ONLY if they show some results, which is a measure of their performance.

What sort of results should they show you?

This is up to you, but my favorite type of results is for them to show me some SALES of my products as a result of their efforts.

Thus if I’m selling something on my web site as a Merchant, and they want to help me promote that product – then I want to see sales coming from their efforts before I pay them.

Fair enough?

Why would they want to put in all the time and effort to do something that only rewards them when a sale occurs?

Because:

1. If they do it right, the money they make from this arrangement can be a HUGE amount
This can be a whole lot more than being paid whether a sale happens or not, working for you as your employee. They would be paid for the same effort, but with more money as your Affiliate (if they do it right). The commission to them can range from 5% all the way up to 70% or more of the purchase price of the product, depending on what the product is. And prices for those products can range from $10 – $20 to thousands of dollars – so the compensation can be pretty substantial for some Affiliates who know what they’re doing.

2. They don’t have to be a Merchant with products to sell
They can simply represent those Merchants as their Affiliates. There’s no need for Affiliates to pack and deliver products to customers, or deal with customer support issues. That’s the Merchant’s job.

3. There are more “opportunities” for Affiliates
Since no special qualifications are required of the Affiliate other than a willingness to give it a shot following certain rules and policies set by the Merchant, Affiliates have more advantages over a “job”. Affiliates qualify themselves, and can choose from thousands of Merchants to represent.

Awesome Leverage Provided By Affiliate Programs
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The Merchant leverages on the time and effort of the Affiliates to reach out to more Prospects and only pays for performance. When a sale occurs, the Merchant has the money to pay the Affiliate off from the money collected from the Customer, so this is a risk-free arrangement for the Merchant in that he doesn’t have to gamble his money on a non-performing “employee” instead.

The Affiliates leverage off the time and effort of the Merchant in creating a product that others want to buy and in the Merchant dealing with support issues so that the Affiliates don’t have to. They simply focus on referring the Merchant’s products and services to interested Prospects, and they can get started right away.

Some Customers will only get to buy some really useful products and services when Affiliates are involved because the Merchant himself, even with a team of marketers on his payroll, cannot reach out to as many Prospects as compared to hundreds or thousands of Affiliates all doing their thing, being paid on performance. Customers will be thankful for products and services that add value to their lives in a way that they want which can be fulfilled by the Merchant – but they don’t necessarily know where to look for them without the Merchant’s Affiliates’ efforts.

This is a Win-Win-Win concept all the way, that involves the transfer of money from the Customer to the Merchant, and from the Merchant to the Affiliate.

Which is also the reason why many businesses use Affiliates to help market their products for them, and why there is no shortage of Affiliates willing to help out.

What’s Amazon’s role in Affiliate Programs?
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Contrary to what you may think, Amazon.com didn’t invent the Affiliate Program.

Affiliate Programs have been in existence longer than you think.

That house you bought was probably sold to you by a Real Estate company, represented by its “Negotiator”. This company was an “Affiliate” for the previous houseowner as it was only rewarded for its efforts in selling the house to you. It will then pay its Negotiator from this commission earned, keeping the balance.

That stock you sold last week was executed by your stockbroker. The company that he works for, the stockbroking firm, is your “Affiliate”, earning a percentage of the stocks’ selling price, only when you sold it. A part of this commission goes to the stockbroker for helping the company execute its clients’ trades.

That insurance policy you have was sold to you by the insurance agent of an insurance company. This agent is the “Affiliate” of that company who pays him a percentage of the yearly premiums you pay to the insurance company to keep your insurance policy in force.

That car of yours was auctioned of by an auctioneer some time ago with the auctioneer’s company getting a percentage of the winning bid as its commission. The auctioneer’s company is your “Affiliate”, and pays the auctioneer from the commission earned for the work done, keeping the balance.

The damages won for you by your lawyer in court against the defendant who injured you in a Personal Injury case can be paid from a percentage of the damages due to you, on a “contigency fee” basis. He’s acting as your “Affiliate”, although you would still call him your “lawyer”.

There are many more examples, but you get the idea.

Affiliate Programs work for all parties very well – and what Amazon.com pioneered wasn’t an Affiliate Program, but an online tracking system for Affiliates who want to refer customers to them via the Internet for monetary reward.

Today, there are Affiliate Programs for all sorts of products and services, because of the leverage provided by an Affiliate Program software that tracks Affiliates’ efforts and sales that also doubles up as an “Affiliate Recruiting” software.

We’ll take a closer look at this powerful piece of software in my next post, that added tons of value to every party to a sales transaction.

You’ll discover how it can help the Affiliate and Merchant in ways you’ve never known – even if you currently run an Affiliate Program yourself.

As usual, I’ll serve up something surprising for you to devour.

Stay tuned.