Learning how to create an effective affiliate program for your site can be a great way to increase sales and traffic. In this blog post, I will discuss the steps you need to take to learn how to create an effective affiliate program for your site that will help you achieve your business goals.
What is an affiliate program?
An Affiliate Program (otherwise known as a referral program) is an arrangement where you pay other people to send traffic to your website. If the visitor then buys something, you pay the affiliate a percentage of the sale. This ensures that you only pay affiliates when they generate business for your site or blog, making it another great way to drive sales and traffic through your site.
Having an affiliate program takes all of the mundane, tedious marketing tasks off your plate and leaves it to people that do marketing for a living. This blog post will show you how to create an effective affiliate program for your site.
Is an affiliate program considered a pyramid scheme or an MLM scheme?
No. That’s a big misconception. People think that because you make more money referring other people to your website than if someone buys something from you, it must be some form of pyramid scheme. This just isn’t the case.
An affiliate program is really just having a referral program and benefiting from another person’s marketing efforts and skills!
An MLM or pyramid scheme usually has some sort of entry fee, but most affiliate programs do not. If an affiliate program charges you to sign up, chances are, it’s a pyramid scheme.
How does an affiliate program work?
To answer the question “how to create an effective affiliate program for your site”… First, you’ll need some sort of affiliate tracking software on your site. There are a number of affiliate plugins for WordPress available, including the popular AffiliateWP plugin. How you integrate this into your website will depend on how technically adept you are and what type of site or blog you own.
AffiliateWP is super simple to set up on WordPress (which is what I use to design all of my websites and websites for clients). You install the plugin, configure a few settings, and it’s good to go.
Once you have the tracking software installed on your site, you simply need to promote it to affiliates so they sign up and get started promoting your products and services for a commission.
Your affiliates will log in to their affiliate dashboard and copy their affiliate links. Your affiliates will then promote their affiliate link with the marketing methods that they know how to utilize. Like some may post on social media, some may create blog posts, and some may set up some PPC campaigns to drive traffic to their affiliate links.
Then, whenever someone makes a purchase from one of those affiliate links, the affiliate earns a commission.
The benefits of learning how to create an effective affiliate program for your site
There are many benefits of learning how to create an effective affiliate program for your site to help increase your sales, including:
- Allows others to do the selling for you
- Saves time marketing since other people are marketing for you
- Increases exposure of your business or blog
- You’re able to provide income to other people
Affiliate programs are great because they allow you to leverage the success of others by sharing the burden of making sales with them. You get paid when someone buys from that person’s link, which means that all of the hard work has been done for you! How do I find affiliates?
What’s a good percentage to give to affiliates?
It depends. You need to calculate the best percentage after deducting all of your business expenses, including hosting fees and website development costs. You also need to factor in how much it would cost you for PPC advertising or other forms of marketing.
For example, you might think 10% is a good referral rate, but if you’re selling products for only $10, you’re only giving out a $1 commission. How many visitors can you really expect to send you?
You may consider giving out more than just 10%. Perhaps 25% if your products cost $25 or more. But even with affiliate commissions, there are still expenses.
How my affiliate program works:
For my business, I offer 25% commissions for anyone that recommends my business to the people in their network. Whenever someone signs up for one of my services, you earn a 25% commission.
Since I charge $5,000+ for a website/mobile app, the minimum you’ll earn from my affiliate program is $1,250 for referring just 1 person!
It breaks down like this: I make a $5k+ sale, you earn a $1,250+ commission, and the person you referred gets the website/mobile app of their dreams. It’s a win-win for everyone!
If you’re looking to make some good money referring others to me (seriously, it’s light work!), then create your account on my business website and get your affiliate link! But don’t send just anybody over to me, there are rules to it!
1 – Only send people that you think have the budget for my services.
Remember that I charge $5,000 to $25,000 for a website and/or mobile app, so if you send me people that are looking to get a website for $200, you’re wasting both my time and yours.
2 – Only send people that are ambitious.
They need to be the type of person who isn’t scared by a slightly higher price point. If they aren’t willing to pay for an amazing website and mobile app, then I don’t want them as a client.
That’s really it. If you send me someone that’s ambitious and has a decent size budget, then you’ll make a commission of at least $1,250 when they sign up for my services.
Have questions about how to create an effective affiliate program for your site? Drop a comment below.
If you need direct help with learning how to create an effective affiliate program for your site, reach out to me so that we can work together one-on-one on it!