If you have a product to sell but not enough cash to hire sales staff, you should consider starting an affiliate program for your business. With an affiliate program, you pay someone a share of the sale when they sell your product. The internet has opened up opportunities for any small business to have a global workforce without the cost of hiring employees. There are people out there just waiting to sell your products for you.
To set up an affiliate program there are several steps you must take to get from start to finish.
- Identify what products your business offers that could be sold by others. People buy everything on the internet these days. If you’re skeptical, do a search. You’ll find just about everything you search for on sale. Your products should be no different.
- Establish what portion of the profit you will give your affiliates. Take a look at every single product you offer and assess your profit margin. Determine how much you would be willing to pay someone else who sold the product for you.
- Determine what payment method you will use. You could provide your affiliates with a percent of each sale they make or a flat fee. Make sure it will be worth their while. Setting your affiliate payout too low could doom your affiliate program.
- Identify your payment threshold. Pay your affiliates often. Don’t require them to make a certain amount of sales before you give them a payday. The more often they get paid, the more motivated they will be to work for you.
- Determine your payout method. It’s super easy to make affiliate payments using the online service provider PayPal where all transactions are completed online. All you need is an account where you can distribute funds to others. All your affiliates need is an account where they can receive payments. Easy.
- Find your affiliates. There are several ways to set up an affiliate program. You could choose a software program that you manage yourself or join an affiliate network. With your own software program you’re going to have to do a bit of work to find affiliates who will sell for you. On the other hand, if you join an affiliate network you’ll have their member pool of potential affiliates.
- Create marketing tools. Help your affiliates help you by creating a variety of marketing tools they can use to sell your products. These can be website banners, ad copy, and email marketing messages to name a few.
- Promote your program. Add the information about your program to your website. Explain what it’s about and who would make a good affiliate for your business. Encourage people to sign up.
Taking the time to define your affiliate program and build your foundation before you jump in will help you be more successful in the long run. An affiliate program can help your business grow and reach the goals you seek.
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