Thursday, November 29, 2007

Launching Your Own Affiliate Program

Joining an affiliate program and promoting it on your site is an easy way to make extra money from the traffic you get to your site. But just as you can join someone else’s affiliate program, so you can also set up your own program and invite webmasters to sign up as long as you have YOUR OWN product to sell. What would that bring you? The same as what you bring your affiliate partners: sales. Every time someone sends you a visitor who buys your product or service, you give a portion of that money to your affiliate. It’s an easy way to generate free traffic and earn extra cash. And you don’t need to be a programming genius to set up an affiliate program. There are a whole bunch of companies out there that offer entire affiliate kits right off the shelf.

AssocTRAC.com lets you run a fully featured affiliate program from your website. It integrates with virtually every payment method, awards down-line commissions, and can handle high-traffic websites. You can edit the sign-up form to match the "look and feel” of your site as well as delete some of the optional fields. The administration area allows you to edit affiliates and commissions, create printable reports of money due, export the data to a text file, view the traffic through your affiliate program, and much more. Your affiliates can log in at any time and see their traffic and commission statistics as well as change their information and get links banner codes and all other promotional materials you provide.

Once the program is set up you'll only need to log in once a month to print out a list of the affiliates, their addresses, and the money owed. You can do this quarterly if you wish. You can export the payments owed to a text file in PayPal's "mass pay" format and then just upload it to your PayPal account to pay everyone automatically.


Or, you can simply write your own checks. If you have to pay a lot of commissions, there is a check printing service called Qchex.com that works well. Simply upload the file and they’ll print and mail your checks for a relatively small fee.

Alternatively, you can run your affiliate program without installing any software on your own server using powerful server-based affiliate tracking systems like 1ShoppingCart.com or ClickBank.com.

Getting Rich from Affiliate Programs

Affiliate programs (also called Referral Programs or Partnership Programs) are essentially commission-based income opportunities. With an affiliate program, you get paid for sending customers to other company’s websites. Affiliate programs are widely believed to be the easiest way to start making money online. Here’s how it works: When you sign up to become an affiliate for a company, you receive a special link with your own unique affiliate ID embedded into it to promote that company’s product(s). Example: AffiliateCompanyWebsite.com/YOUR-AFFILIATE-ID. Next, you simply add your new affiliate link to your website, newsletter or anywhere else. Then when people use your link to get to the other company’s website and subsequently buy a product from them, YOU earn a commission. You benefit from the commission earned and the affiliate company benefits from sales it would NOT have otherwise made without your promotional efforts. For example, if you’ve ever gone to a website and seen links to Amazon, those were affiliate links. If you click those links and end up buying the product on the next page, the webmaster whose website you originated at will earn a commission from Amazon.

Joining an Affiliate Program

As with any marketing venture, you need to be careful in the selection of an affiliate program. The benefit of an affiliate program is that it gives you another way to make money from your website visitors. Instead of selling them a product yourself, you send them to a partner and take a cut.

On the downside though, your affiliate ads will take the place of a different ad that you could have put in that same spot. You have to make sure that each advertising position on your site is bringing in the maximum revenue possible. If you’re not getting the most from your site, you’re throwing money away.

The key to success is to choose the right program, right from the beginning. Click here to learn about 5 affiliate programs I belong to who pay out big commissions every month to myself and many others. Now, a lot of commercial sites run affiliate programs. That’s because they know that they only have to pay a commission if a sale is actually made; it’s a proven way to generate revenue without risk. What that means for you is that when it comes to choosing an affiliate program, you’re going to have a huge range to choose from. What it all boils down to though is product and price. While it might be tempting to go for the program that pays the highest commissions, the program won’t pay you a penny if your visitors won’t go there or won’t buy once they get there. You have to be certain that the service you’re promoting is of genuine interest to the kind of visitors you get to your website, whether you’re buying them from search engines or anywhere else.

Sure, you can work backwards: You find a high-paying affiliate program and create a small site to send users to it, but do you know where to buy traffic for a program like that? You’re going to have to research the field, check out the most popular sites, and negotiate banner campaigns and link exchanges.

That’s fine if you want to invest the time and the effort. But it’s much easier to find an affiliate program operating in a field you’re familiar with, and use that program to earn extra cash. For example, suppose you had set up a dating site. You might make some money selling subscriptions, but you might make even more by joining Match.com’s affiliate program and referring your visitors to them. Unless you’re planning to be the Internet’s biggest


dating site, you’re not going to be able to compete directly and beat them, but you can help them — and make money doing it. Or rather than sell your users directly to a competitor, you can look for services that complement your own. Visitors to your dating site, for example, might be interested in buying flowers, books on relationships or tickets on singles cruises. Instead of selling just one product such as membership subscriptions, you’d be selling a whole range of different goods to the same people and increasing the sources of your income.

Here are some tips to selecting an affiliate program that is lucrative and right for you:

Don’t accept less than 25% commission. You can find affiliate programs with great payment structures and high percentages of the purchase price in just about every field. In fact, many affiliate programs pay out 50%-75% depending on the type of product. Look for comprehensive statistics pages that list the number of click-throughs, sales and earnings so you can see how you’re doing. The information should be broken down by month.

Look for programs that offer a wide variety of promotional tools to put on your web page, including text links, banners, articles, brandable ebooks, etc.

Find out how often you will be paid and make sure that the payment schedule meets your expectations. Some programs pay biweekly, many pay monthly, others quarterly; which is best for you? Look for examples of marketing methods that successful affiliates are using to get the best results. Make sure that top level support is given. If they can’t answer your questions promptly and intelligently, you don’t want to work with them.

Advanced Ad Tracking

The Need for an Ad Tracking Program

There are two main factors that make an ad effective – Content of the ad and the sites where it is advertised. Most experts would agree that constant testing and experimenting is the only way to ensure that you get the right combination. However, the question arises – How do you test your ads? An integral part of any advertising campaign is


knowing which ads bring you the most visitors. After all, you may have banner ads, newsgroups ads, ads in newsletters and articles, ads in autoresponders, or a simple classified ad on a website. Every marketer needs to know:

.. which of the ads received the best response
.. whether free classified sites are worth the effort
.. which newsletters are the most profitable
.. how a sponsored newsletter ad compares to the standard one
.. whether animated banners are better than static ones
.. how effective email ads are
.. whether an ad at the beginning of a newsletter or article outperforms the one at the end

Ad tracking programs would answer all of these questions. They can help you analyze the effectiveness of every single ad, and hence they should be an integral part of every marketing campaign. At the basic level, an ad tracking program records when your URL has been clicked. It can detect where your visitor came from (the referring URL), the browser and operating system used and the exact time the visitor arrived. It can also record total hits and unique hits (i.e. where one visitor may click several times). This data is kept in the system so you can then pull reports on any ad campaign over any period, e.g. by month, day or even by hour.

Types of Ad Tracking Tools

There are two types of Ad Tracking programs. However, the operation of both these types is the same.

CGI Script
You purchase these programs outright and it is installed on your site. If you have some technical knowledge, you should be able to install it yourself; otherwise the supplier will charge an installation fee. There are certain minimum software requirements for programs which run on your site, including access to the cgi-bin. Hence, most free sites would not allow you to install CGI scripts. With CGI scripts, your tracking URLs will carry your own domain name.

Online Services
These programs operate completely independently from your site - no software installation or use of your system resources (such as disk space) is required. However, such programs run at the supplier site. You pay a rental (monthly or yearly) for the program. Thus, you are dependent on the supplier’s website for your ad tracking. With an online tracking service, your tracking URLs usually carry the online service’s domain name.

The main difference between these types of ad tracking tools is the installation. For some businesses, running CGI scripts may be more advantageous, whereas for others, online services would be more useful and easier to manage.

There are many ad tracking tools available at reasonable rates. Two of the most popular tools are discussed below:

AdMinder.com
This is an online ad tracking tool. AdMinder provides an ad tracking service that can be used with multiple websites. It provides the capability to track clicks, actions and sales. AdMinder provides reporting as well as the ability to export your data in CSV format, which you can use in MS Excel for additional analysis. Some of its key features are:

.. Browser-based-service, so no installation required
.. Works with all major web browsers
.. Provides key financial stats
.. Allow for grouped reports
.. Unlimited campaigns

ProAnalyzer.com

ProAnalyzer Ad Tracking System is a CGI program that installs on your website's cgi-bin directory and tracks your ad click-throughs and sales without paying a monthly fee. When a visitor enters your website from an ad URL, a cookie is placed on his web browser and a clickthrough is recorded. If the visitor purchases a product, that cookie is read on the Thank You page with the purchase total, and the sale is recorded for the ad that generated it.

You can track sales or results either by the campaign name, the revenue generated by a sale, or the action accomplished (lead generated, etc.). The Administration Area allows you to monitor each of your campaigns showing hits, sales, and the conversion rate for each. You can configure how the program calculates the conversion rate (by raw hits or unique hits) and how results are sorted. There are lots of different ways to bring customers to your site. So far we’ve discussed search engines, banner ads, text links, classified ads and some “old-fashioned” offline marketing strategies.


As you learn these methods and begin to put them in practice, it’s important to remember that no single method has all the answers. The best marketing campaigns are a combination of them all. In the next chapter, we’re going to look at another exclusively online method of building a customer base and making money: affiliate programs. Of course, the best way to learn about affiliate programs is simply to sign up for a few of them yourself and do some marketing.

Creating Effective Ads

Online advertising leaves a lot to be desired. There are ads that emulate Windows-warning boxes, pop-ups and pop-unders and a whole variety of “interruption” style ads. All of these ad mediums are developed with the intent to make people notice them. However, most of them only end up irritating people. Advertisers, especially those with small budgets, can't afford to waste money on ineffective advertising. In order to optimize your advertising purchases, consider the following steps:



Step 1: Define your target market and specify clear goals of your advertising campaign.

The most important aspect of any advertising campaign is to have a clear objective in mind. You need to know what group of people you are targeting with your ad campaign and what specific results you want to achieve from your advertising. Do you want to make 1 sale per day or 100? It may seem silly, but defining your outcome in advance will make a dramatic impact on what you actually achieve.

Step 2: Identify the most effective sites for reaching your target market.

Sites that are most relevant to your product or service will, more than likely, be your best bet, but also consider larger sites or networks that can target the audience you're trying to reach. They can be very cost-effective. If you have multiple products or services that appeal to various target markets, you'll have to consider sites that reach all those various segments.

Step 3: Craft your message to fit the needs of the audience you're targeting.

This comes down to understanding the audience of the sites you're advertising on. The message you use on a technology site to appeal to technologically savvy customers won't have the same appeal for visitors on a small-business site. Focus your campaign accordingly.

Step 4: Develop the content of your ad.

Pay particular attention to the content of the ad. The content should be such that it clearly distinguishes your product or service from your competitor’s. Have a catchy headline. The headline is probably the most important part of the ad – It is the attention getter.

Step 5: Formulate the specific promotional messages that correspond to your goals.

The promotional messages should concentrate on the major selling points of your product or service and have a strong call-toaction. Example: “Lose 10 pounds in 2 weeks and add years to your life by taking the new breakthrough Healthy Life Vitamin. Click here to get your free bottle today while supplies last!”

Step 6: Make the desired action clearly visible.

This certainly doesn't mean the desired action should necessarily blink, bounce or do flips, but it should be visible within an accepted format for the media you're using. In the case of the Internet, underlined text links, "click here" text entry boxes, and pull-down menus are all ways you can make the desired action clearly visible.


Step 7: Design the ad so it looks like it belongs on the sites where you're advertising.

For instance, you may want to use the site's font faces in your text, color schemes in your background, font color choices overall, and emulate images where appropriate. Try to conform to the environment you’re in so potential customers feel at home when they see your ad.

Step 8: Produce multiple versions of each ad.

Create three or four versions of each ad, changing the promotional message, call-to-action, font faces and color schemes. This is especially important if you're doing price testing or gauging reaction to specific promotions. By splitting your advertising buy among the various versions of your ad, you can then start to optimize your results based on the message that works best.

Cultivating New Customers

Search engines, banner ads, text links and classified ads are all ways to attract clients and build a customer base. It should also be noted that some of the old traditional methods like word-of-mouth referrals still work just as well online. In fact, word of mouth advertising brings me a lot of new business every month. In addition to the aforementioned techniques, here are some tips to help you grab as many customers as you can while you’re setting up your business and getting your online marketing programs in place.

Know Your Market

Whatever your line of business, you’ve got to know your market. You have to know who your clients are, what they want and what makes them buy. Do the market research, check out your competitors, create a formal marketing plan and be sure to take the effort to put yourself in the shoes of your buyers. Otherwise you won’t get any! Bring Out Your Benefits You might think you know what your product’s sales points are. You might even be very proud of them. But, the fact is, your buyers don’t care about all the wonderful gizmos you’ve packed into your product. They just want you to answer one question: what’s it going to do for me?

That’s what all your marketing has to be about: explaining to your buyers how you’re going to improve their life.

Update Your Site Frequently

It can take a lot of effort and time to create a website that works. But you can’t stop there. You’re going to have to keep updating it, checking it and making sure all the links and addresses work. That’s the first place to look when you notice your sales starting to drop, and it’s crucial to keep them coming in.

Be Alert for New Marketing Opportunities


You must always be alert for opportunities to make new business contacts and not allow yourself to be caught off guard when opportunities arise. It doesn’t matter if you’re out shopping or at a Chamber of Commerce meeting; make sure that you have professional business cards, brochures, etc. on hand and pass them out.


Don’t Keep Your Business a Secret

Tell everyone about your business and your product. You might even consider sending out a mass mailing to everyone you know, telling them what you’re doing. Chances are, someone knows someone who wants what you’ve got, and friendly referrals usually bring the best business!

Find Repeat Customers

When it comes to building customers, there are clients who buy once, and clients who buy lots of times. It’s the latter that you want to pack into your customer list; they’re worth their weight in gold. Big companies are good places to prospect for repeat business (they have big demands and budgets) but always treat your repeat customers well. That might mean giving occasional discounts and freebies, but the extra business and customer loyalty you gain will make up for it.

Classified Ads

Offline, classified ads are relatively cheap little ads that appear at the back of newspapers or magazines. They work well if you’re trying to sell your old Ford Escort or you’re looking for a new home for your old sofa. Offline classified ads can even work well promoting a variety of online products and services.

Online, things are a little different. But not hugely different. I post ads on classified sites online, but I don’t expect to make a lot of money from them. What I do expect though is an opportunity to test my headlines and ad copy before I start spending hard cash on AdWords, other PPC’s and text links.

That’s why I don’t bother with the dollar ads. If I’m going to spend marketing money, I’d rather give it to a search engine than a classified ad site. You’ll typically get a much better return with PPC advertising and you know exactly what you are paying for each visitor. But there are places where you can place free ads online, and you can actually do this on some of the really big sites like AOL and Yahoo. Even if I don’t make many sales, the fact that I’m getting my product in front of so many people for free certainly doesn’t do me any harm.

Text Links

Text links are much simpler than banner ads. They’re also less eye-catching and less sexy. There’s no funky animation, no neat Flash, just a few well chosen words often stuck at the side of a web page. But that doesn’t mean they’re not effective. In fact, to some extent, text links are the unsung heroes of online marketing. They don’t get half the attention they deserve, but they can do an excellent job bringing visitors to a site.

The first point to bear in mind about text links is that they’re tough to write. You might have just 50 characters to make your sales pitch. That’s about the length of that sentence, so you’re going to have to be pretty creative in what you say. That’s the downer. On the plus side though, text links are amongst the most popular form of promotion amongst Internet users. They don’t get in the way like popups, and they’re often mistaken for content so they’re actually read. And because they’re written into the site’s HTML, you know that each page view means a real exposure.

They’re also cheap. You might have to pay a flat-fee or a costper-click, but there’s much less risk than with banner ads. If you know how much traffic the site’s getting, you can figure out in advance if it’s worth your while. Best of all though, you can sometimes arrange for free links with partners in return for a similar placement on your own site. That doesn’t just give you free advertising… It also helps your search engine placements.

I use a lot of text links to promote my sites, but I wouldn’t rely completely on them alone. But, in terms of effectiveness and cost, text links are very powerful.