| As a long time affiliate program manager, I have | | | | 6. You will be able to offer a competitively priced |
| been faced with the good, the bad and the ugly. In | | | | retail product. You don't have to be the cheapest for |
| order to manage the customer's expectations, I've | | | | sure. But if your competition is less expensive and |
| come up with 10 benchmarks they must first meet | | | | you don't have a value proposition to support your |
| before I take them on. While I'd like to be a miracle | | | | pricing model, you will have trouble getting affiliate |
| worker and help everyone that approaches me, | | | | sign ups. |
| some situations just can't be helped without some | | | | 7. You know the average price per sale on the site. |
| fundamental changes in their business model. | | | | Low priced items are not affiliate favorites as they |
| If your business meets these criteria you will be able | | | | have to drive lots of traffic to earn any money. A |
| to attract and sign up affiliates. | | | | retailer with at least a $60 average sale is a bare |
| 1. You are able to sell the product nationally or | | | | minimum. Many times it may be a packaging issue, |
| internationally. Localized products do not sell well in | | | | but if the retailer hasn't figured it out by the time I |
| affiliate programs. Affiliates come from everywhere. | | | | show up... it can be really heavy lifting to get them to |
| Limiting the affiliate to a local market does not work. | | | | package their products correctly. |
| This means many kinds of retail product distribution | | | | 8. You know the conversion rate of the visitors to |
| models limited by territories do not work. | | | | buyers on the site. Depending on the conversion rate |
| 2. You are able to sell a unique product. This goes to | | | | and the average sale price I can give the retailer a |
| the competition. When I hear the phrase: "Well... | | | | pretty good idea if he is going to be successful in |
| there's really nothing quite like it on the Internet", I | | | | attracting affiliates. A 1% conversion rate can be |
| know the prospective client has not done any online | | | | good depending on what you sell, and I have some |
| research. There is competition in virtually every | | | | customers that run at 4% as well. |
| segment of every product type on the web. Get | | | | 9. You know and understand what kind of |
| used to it. There is competition for every dollar out | | | | ecommerce solution the retailer uses. If your |
| there regardless of how unique you may think your | | | | conversion rates are abnormally low for the category |
| retail product is. | | | | you are in, I may pass because this may mean your |
| 3. You have a brand name or sell brand name | | | | ecommerce solution or customer service is not up to |
| products. Having brand names does make it easier to | | | | par. |
| sell online. Having a branded category name is even | | | | 10. You have a website that is attractive and |
| easier. Does that mean you have to have a brand | | | | compelling. So often overlooked as a determining |
| name to be successful... no. | | | | factor, in many ways it is a major factor in the |
| 4. You will be able to offer an aggressive affiliate | | | | affiliate's decision on whether to add your site links to |
| payout. Brand names many times prescribe low | | | | his site. While he wants to make money, if he sees |
| payouts to affiliates. This makes getting affiliate | | | | poor quality design work he is unlikely to add you. He |
| buy-in difficult. I launched a national brand company | | | | knows if its ugly to him, it will be ugly to the people |
| with a really low payout after suggesting a much | | | | he refers to the site. |
| more aggressive customer acquisition number. The | | | | So how did you do? If you met at least 9 of the 10 |
| program started out well and then fell off | | | | you are in good shape. What happens if you are |
| dramatically after 60 days as affiliates tested the | | | | lower than 8? Most of these are fixable so fix them. |
| program and didn't make enough money to justify | | | | If it can't be fixed then you may want to get a |
| their ad spends. They were gone. I was able to keep | | | | second opinion or look for alternative ways to drive |
| them by raising the commission, but almost lost them | | | | free traffic to your site. If you scored a perfect 10 |
| entirely because the program was not priced right | | | | you can do well with an affiliate program if you |
| coming out of the gate. | | | | execute it right. |
| 5. You know the retailers customer acquisition | | | | Durk Price is a professional affiliate manager. He has |
| number when I launch an affiliate program. Hard to | | | | managed large retailers like LimitedToo, Beauty |
| imagine, but many retail merchants have no idea | | | | Trends and others. He has launched affiliate programs |
| what they could or should be paying to acquire | | | | and had affiliate sales account for 27% of total online |
| customers. If they don't know and seem to think the | | | | sales within 90 days of launch. His primary focus is |
| number I quote them is too high, I go looking for | | | | managing affiliate programs for retail companies. |
| other opportunities. | | | | |