One of my clients recently created a new bundle of products and wants to find other people willing to sell them on her behalf. In return, they get a hefty commission.
She asked me for some advice about how to best approach these people, and how to convince them to be part of her extended sales force.
So I'm going to share some of that advice with you here.
This is known as an affiliate program, where you pay others to send people to your business, and you pay the affiliates a commission if those people buy from you.
This has become extremely common on the Internet, but it's been around long before the Internet as well for example, real estate agents sending business to mortgage brokers, and vice versa.
Three key principles
A successful affiliate program - on or off the Internet - rests on three important principles. If you get this mix right, you've got a better chance of making your affiliate program work.
Not all affiliate programs follow these rules. But if you break them, make sure you know why. Unfortunately, most businesses ignore one or more of these principles, without knowing why. And that's a disaster for their affiliate program.
1. Good Match
First, there must be a good match between the two parties. In other words, choose affiliates who have a list of the right sort of clients.
Otherwise, you'll waste time trying to recruit affiliates who aren't interested in promoting you, because they know you're not a good match for them.
Even if you do recruit them, if it's not a good match, you'll waste time creating useless joint venture deals, handling queries from customers who don't understand your offering, and processing refunds from disgruntled customers who were promised something that you couldn't deliver.
2. Commission Only
Second, money changes hands only on a successful sale.
Affiliates don't pay you to join the program, and you don't pay them unless they refer somebody who makes a purchase. This makes the deal a low-risk proposition, which makes it easy for both parties to accept.
There are different ways of calculating commissions, but the basic principle is that it's always triggered on a sale. You don't have to worry about paying your affiliates a "salary"; and they don't have to worry about paying you a "joining fee".
3. Win-Win
Finally - and most importantly - the single most important element of a profitable affiliate relationship is that both parties walk away thinking that they got the better end of the deal.
How can both parties get the "better end" of the deal? Well, the two parties bring different assets to the deal. You're happy to sell your product or service to new clients and give away part of a profit that you never would have had; and the affiliate has a list of potential clients, so is happy to refer them to you in return for a share of the profit.
Do you follow these principles?
If you've got an affiliate program, are you following these principles? If not, I bet you're struggling to make it work. You'll get greater leverage by following these rules - at least until you've got enough experience to break them deliberately.
Related Articles
Affiliate Marketing - the Surefire to Become a Successful Affiliate in 2007!
By: islam | 17/07/2007 | Advertising
Affiliate Marketing is known to be the easiest way to make money on Internet. You don' t need a list or a website, you start directly in profits...
How To Become A Super Affiliate Without Website
By: Bob Bastian | 25/03/2006 | Affiliate Programs
Yes, you could make a living online as an affiliate even if you do not have the benefit of your own website! Read on as we discuss alternative strategies that will allows you to make the most out of your affiliate marketing campaigns without having your o
How to Know Which of the 'net's Highest Paying Affiliate Programs are Right for You!
By: Uche Ikechukwu Benson | 25/12/2007 | Affiliate Programs
A Widely Accepted Information and Avenue For Creating Unending Online Wealth
The Top 11 No-hype Traffic Generation Strategies That Makes you Money Like Crazy
By: Seth Chong | 11/08/2006 | ECommerce
The "Secrets" behind ramming in massive traffic and super-targeted visitors finally revealed...If you want to know how to make it, you'll definitely need to read this.
Home Business And Affiliate Marketing
By: Ranju Kumar | 24/01/2008 | Affiliate Programs
Most of us dream of being our own bosses. The enticement of big money and adaptable work hours is quite appealing. But still, many are afraid to venture out on their own. They fear that they do not have the funds expected to get a business started or they do not want to loosen the security of their day job.
Why Some of Us Lose in Affiliate Programs Before Even Starting
By: Thien Kai Wei | 09/01/2007 | ECommerce
Many for us have heard that affiliate programs are one of the best ways to earn money online. However, without any research into the affiliate program we intend to take on, we may be wasting our time and money.
3 Main Ways to Get Instant Traffic at Light Speed!
By: islam | 14/07/2007 | Internet
When you are starting a new business or launching a new product, no matter in which niche is your target market, you need thousands of people to come to your website. You may need to know how to use Google adwords first, there is excellent ebooks on this subject, that will save you a lot of money, and avoid your ad to be deactivated.
The First Commandment of Internet Marketing
By: islam | 14/07/2007 | Internet
Autoresponders are one of my favorites tools. I used to do business in the traditional word (I owned a pizzeria), and the process of delivery, was after the preparation itself, the core of the business.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Solicitation of family and immediate friends
By: Marilyn | 18-07-2008
I belong to an MLM compnay who told me that we can not solicite immediate downline people into another network markeing company we are involved with.
The products are non completing although they fall under supplements. They have different purposes. The first company limts us from doing any solicitiations with family and friends that we have brought in to their company into another company.
Someone told me that there is a law recently passed that makes this illegal.
My company has had an inquiry from All Star ...
By: gwetter | 17-07-2008
My company has had an inquiry from All Star marketing group in Hawthorne NY. I have been unable to find the names of the principles of that company
Multimap search campaign?
By: affilimate | 16-07-2008
Multimap are number 1 in google for "maps"? I'm interested to know what type of search terms they are struggling to get ranked for?
Events similar to the Machester Digital Roadshow
By: Nick Lapham | 16-07-2008
Hello, the Netimperative Regional Digital Roadshow- Manchester Date: Thursday 17th July 2008 is exactly what I need, but I shall be on holiday, are you planning anything similar at any other location? Nick Lapham
Car information , car sales , marketing
By: Michael | 14-07-2008
HOW MANY CARS SOLD PER DEALERSHIP ? Hello , I am trying to get information about the auto industry . What i would like to know is .... " How do I find out how many cars are sold , by dealership it possible ". Can I find that information by Market Area ......... ie. Hartford , Atlanta , Orlando , Nashville , etc. ........ new cars and used cars , Trucks and SUV's ? Thanks for your help .....
My name is Michael
e-mai BUSSINESS4MICHAEL@AOL.COM
Nobody can answer this question.
By: JGgotogirl | 11-07-2008
What is the market size in the United States for tactical flashlights? How many are sold each year? How many are sold to police, military, security personnel and other relevant protective services?
Q&A Powered by:
Latest Affiliate Programs Articles
Why Generator Site Maps Are A Necessary Tool For Any Home Based Business
By: Terry Leslie | 19/07/2008
Your home based business venture is just a pretty website if you can't get the flow of traffic that you need to start growing and earning. Generator site maps can play an intricate part of this growing battle between websites for the necessary traffic for profit that websites need in order to remain competitive.
Joint Ventures Represent an Amazing Business
By: Suresh Kumar | 19/07/2008
Joint ventures represent an amazing business opportunity capable of boosting your profits in record time. Considered the most powerful method to skyrocket sales within a very short time, joint ventures require finding a reputable and reliable partner.
In China High Potential and Quality Service Venture Capital
By: Rohit Bhagta | 19/07/2008
Venture capital is a type of private equity capital typically provided to immature, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company.
Affiliate Business on the Internet
By: Rohit Bhagta | 19/07/2008
Affiliate business programs are a win-win situation for everyone involved. Internet-based merchants hook up with affiliates to generate traffic to their web sites which results in sales and in commissions checks into your mailbox, or bank account. Affiliates get paid if the traffic from their site visits the merchant web page. The smart Internet entrepreneur does some research to determine the best affiliate programs for her business.
Building Your List With Best Ideas
By: Rohit Bhagta | 19/07/2008
Building a list can be a daunting task for some, but it can be accomplished fairly quickly depending on how much effort you put into it. Now, there are several ways to accomplish this and I’m going to try to go over some of the best techniques I have found in this article. The first thing I suggest is setting up joint ventures.
When You Think You’ve Found the Hot Button
By: upinder singh negi2 | 18/07/2008
Let me ask you this: What do you really, really, really want? If you say, “Money”, what does that translate into for you? Control? Power? Security? Dignity? Freedom? How much money?
Niche Affiliate Marketing: Is It For You?
By: Cynthia Minnaar | 18/07/2008
Niche affiliate marketing is not just about selling. It is more about introducing people to products and services that they would be interested in but may never have heard of or providing them with more information about something that they have been considering buying.
Google Adsense What it Can Do for Your Site
By: Vipann Kumarr | 18/07/2008
Google Adsense is a structured way to earn good money out of what Google makes from its advertisers on Adwords. The way it works is that advertisers pay top dollar to get their ads listed on Google. Google gets paid on every click that happens on the ad. By distributing the ads on your website and mine, they stand to gain more exposure, regain advertising funds quicker and also pay us good money!
More from Ranju Kumar
The Benefits of Obtaining Medical Records and Immunization Records
By: Ranju Kumar | 17/07/2008 | Health
Many individuals do not realize that there are many benefits of obtaining medical records and immunization records. Medical records and even immunization records can give you, and various types of medical professionals, an accurate snapshot of your medical history.
Discover Essential Dog Training Secrets Today!
By: Ranju Kumar | 16/07/2008 | Pets
Many are not aware of it, but there are actually many essential dog training secrets that can be administered during behavior modification sessions in order to maximize the results that you receive.
How to Improve Communication between Emergency Doctors and Patients
By: Ranju Kumar | 16/07/2008 | Health
In many instances and studies, it has been concluded that communication between emergency doctors and patients is a common complication that is experienced. One of the main reasons that this occurs is because of the fact that the doctors who work in an emergency room setting do not develop long term working relationships with the individuals that visit their facilities.
Money Expert Reveals Renters Could Be Faring Better Than Homeowners
By: Ranju Kumar | 16/07/2008 | Personal Finance
Although recent rises in living costs are seeing Britons of all ages and backgrounds face a rise in financial pressures, it appears that some are being affected more severely than others, a new study indicates.
Top 5 Advantages Of Online Business You Must Know
By: Ranju Kumar | 16/07/2008 | Home Business
Launching an online business is what many people like to do these days. A lot of people plan to have an online business as the internet has emerged as the best source of income for many in the recent past.
Exploring the Various Types of Records
By: Ranju Kumar | 15/07/2008 | Health
There are many different types of records that you will find to be extremely beneficial throughout your lifetime. These records include those that are related to your personal health, online records, wills, insurance records, property records, and even those that are related to educating patients such as drug interactions.
Drivers Urged Not To Shy Away From Cover Costs
By: Ranju Kumar | 15/07/2008 | Loans
Despite financial pressures might increasingly be weighing down on motorists, such consumers have been warned not to illegally duck out of meeting various spending commitments, new research claims.
How to Become a Real Estate Guru by Using Real Estate Courses and More!
By: Ranju Kumar | 14/07/2008 | Real Estate
The real estate industry is a hot market right now! Have you always been interested in becoming a real estate guru? If so, there are many ways that you can maximize your profits when it comes to homes for sale. There are many tools and resources that you can put to work for you.
Internet 
