How to Evaluate an Affiliate Program

This is an except from the Authorpreneur Training and Resource Guide

Overview

It is no secret that selling affiliate products or services is one of the leading ways that Internet marketers make money on the Web. As an Authorpreneur, you need to incorporate niche affiliate products into your business strategy to diversify your income potential.

However, just because an affiliate product is part of your niche market, doesn’t mean that it is selling well. Additionally, there is no guarantee that you will make money if you incorporate it as an offering on your Website. It is imperative that you research each product and associated affiliate programs to ensure that you will be profitable.

Reviewing Affiliate Products or Services

When reviewing products or services, look for the following:

The program should offer excellent products that you would purchase yourself.
The products should be the type that numerous individuals need now, as opposed to a “nice to have” item that can be purchased later.
The product’s value should be apparent and the offer needs to communicate that it is an excellent purchase for the money.
Ensure that you are paid a fair commission. If multiple affiliate programs offer similar products, compare the agreements to see which one will profit you the most.
The Affiliate website should be professionally designed and have an outstanding capability to sell their products. As you visit the Website, do you get excited and feel like purchasing the product? If not, ask yourself, “why not?” Chances are your referrals will feel the same way. This translates into NO sales for your efforts.
The affiliate agreement should be fair. Read the fine print and make sure that you understand the “rules.” For example, are you paid immediately for each sale, or do you have to reach a minimum dollar amount before you get paid?

If you receive US$20 for selling a US$40 product and the program has a US$100 minimum payout, then you will have to sell five products before you are paid. If the product is not selling in high volume, then it could take you several months to achieve the minimum payout.

Is any training or coaching provided for affiliate partners? It is better to sell for a company that realizes that helping you is the key to his or her own success. They should provide you with all the success related information and techniques that they know will help to increase sales.
Look for programs which have a “lifetime customers” policy. This means that you will be paid for each on-going purchase that your customer makes and not just for the initial sale.
Provides a “two-tier” commission program. If your customers sign up as affiliates and sell the products, you will receive an additional commission from the sales that they generate. (NOTE: PayPal does not allow “two-tier” commission programs. They associate them with multilevel marketing programs that have had a dubious history. They are referred to as “pyramid schemes.” While this is unfair to two-tiered affiliate programs and legitimate multilevel marketing programs, nonetheless they refuse to change their policy.) Since PayPal has become a large processor, it is usually incorporated into many programs.
A good program will limit the number of affiliates who can sell their products. At the very least, they should review your Website to approve your affiliate application. This helps to limit the competition.

Should You Join Multiple Affiliate Programs?

It is sound business practice not to “put all your eggs in one basket.” Spending time promoting a product only to see the company go out of business is a painful experience. You can join multiple affiliate programs, just avoid incorporating competing programs.

However, you can promote two of the same type of programs if they offer complementary products. For example, one provides car wax and the other offers chamois buffing cloths.

As a word of caution, start off with up to six programs and gauge the amount of time that you are investing to manage the process. When you are comfortable, then you can expand as you desire. Also, if a product is not selling to your satisfaction, then you will want to replace it with another.

Affiliate Programs to Avoid

It is best that you avoid affiliate programs that:

Only use cookies for tracking
Advise visitors to use an 800 number for purchases and usually post it on every page. You can be assured that affiliates will not get paid for orders placed by telephone.
Do not provide you with online sales statistics which prevents you from tracking visitors that click on your link
Carefully review the affiliate agreement’s terms and conditions. You will be surprised at the tactics some merchants use to avoid paying affiliates for their sales. Payments can also be delayed. Also, don’t be enamored by a "named brand" product offering. Many large corporations offer very low commissions, so make sure that you do your homework first and maximize your potential revenue

Some Additional Helpful Tips

You should not have to pay to join any good affiliate program.
First look for affiliate programs that pay lifetime commissions, offer a two-tier program and have a reasonable minimum to achieve before you are paid.
When you can, purchase a merchant’s products or services before joining their affiliate program. You want to avoid selling an inferior product and tarnish your reputation.
Do not agree to any program that demands exclusivity.
If a program appears to be a gimmick, avoid it like any other “get rich quick” scheme.
If you are not selling a product and receiving commissions, replace it with an affiliate program that is experienced with making sales and consistently pays your commissions.
Pay close attention to the "traffic verses sales ratio," e.g. how many visitors click on your affiliate link verses how many turn into sales. The Internet standard is, on average, one sale per 100 clicks. If your ratio reaches 1,000:1 - one thousand visitors to generate ONE sale - you should consider replacing that affiliate link with one that produces better results.
Solving a problem is worth more than preventing one. Sell products that fill a nagging need or a critical problem for your customers. Most people are not proactive and usually react when a need arises. You will make more money by offering them a simple solution to their problem. A good product to sell is also one that someone would be reluctant or a little embarrassed to purchase at a store. Buying online provides them with a higher level of privacy.
Ensure that your affiliate link is to the actual product page that you are pre-selling and not just the merchant’s home page. Imagine that you do a great job providing a product comparison and your visitor is pre-sold on wanting your affiliate product. They eagerly click on your link and end up at the home page where they now have to search to find the product that you recommended. Goodbye sale! L When they land on the appropriate page and now read a great sales letter…KA CHING! Your sales conversion ratio dramatically increases.

NOTE: As Websites can change without notice, check to ensure that your visitors are being forwarded to the correct page. If a page is changed, they can receive an error message stating that the page could not be found. By checking regularly, you can modify the link or select a similar product to sell and forward them to the new sales page

You should receive notification by e-mail every time a sale is made.
You should also be provided with helpful sales support material.
Don’t use their banners – use the text links instead and weave the link into your content. Pre-selling the product is a much more effective technique and will increase your sales.

The Authorpreneur program demonstrates step-by-step how to find, research and evaluate affiliate programs, as well as other ways to generate additional income.

Click here to become an Authorpreneur today!

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