[January 30th, 1999]

See Also   How to Build a Web Store for FREE   How to choose mailing list management software   How to Grow Your Web Business   How to Accept Credit Cards without a Merchant Account   How To Develop Online Products That Sell   How to Change Your Web Hosting Service (ISP)   How to Deal with Disgruntled Customers   How to Get Top Search Engine Positioning   How to Beat Credit Card Fraud   How to Design an Affiliate Program   How to Accept Credit Card Payments   How to Choose a Shopping Cart

In 1997, Amazon.com launched the first associate program. Since then the number of associate (or affiliate) programs on the 'Net has grown at an enormous rate and for a very good reason. Quite simply, a well-designed associate program is the best and fastest way to grow an online business.

However, the Amazon program has, at the time of this writing, some serious disadvantages for its specialised bookseller-associates. For one thing, customers referred from an affiliate's site probably won't buy right off the bat. And if they return, they return directly to Amazon, not through the affiliate's site. Guess what? No commission for that!

Just think what you could achieve with an associate program that offered a genuine partnership!

Is an affiliate program right for you?

Setting up an affiliate program is not easy. Here are the major issues:

• There are many complicated technical and legal aspects that have to be executed properly.

• You will need to figure out a way to screen applicants, or have a clean and easy way to weed out troublesome, poor performing or potentially embarrassing affiliates.

• You'll have to distribute html code, graphics, logos, a "how to" manual... everything your associates need to set up their stores.

• You'll need to develop a training program to help them maximise sales.

• An accounting system to track sales commissions must be established. Set it up online so your affiliates can check their commission status at any time.

• You should e-mail a weekly or monthly newsletter, which includes the commission report.

• Checks must be cut and mailed every month.

• You'll need to develop a marketing plan to build up your associate list.

• Tech support for your associates has to be in place. You'll be amazed at the mistakes they make.

In short, setting up an associate program is a lot of hard work!

Since it is a major commitment of your resources, make sure that the benefits of this sales strategy more than outweighs its costs. Consider three important factors when weighing the two:

• The nature of your product(s) -- Does it make sense for affiliates to "sell" your products?

• The quality and quantity of your resources -- Do you have the people and money necessary to start it, and to maintain it?

• The existence of high-traffic sites relevant to your products -- Are there high-traffic sites that "fit" with your product and that would participate in your program?

Once you have the answers to these three questions, answer the following...

• Would you be better off deploying that time and money elsewhere?

Three important thoughts

While building your affiliate program, keep these important points firmly in mind:

1. Your prospective affiliate will first of all assess your product. Do you sell a great product at a good price? If not, your affiliate program is doomed -- most people won't sell stuff that they don't believe in.

2. Make it easy to join. Make it easy to stay up-to-date as an affiliate. A powerful backend should transparently support your partner-affiliates. Of course, you should know that by now!

3. Affiliates will constantly measure you and your program against others. Execute.

More: How to build, and keep, your affiliate sales force

Ken Evoy is the author of Make Your Site SELL! (MYSS!). MYSS! will show you how to sell on line like no other book or program ever has before.

This article is a summary of one of the chapters from MYSS! Ken has kindly offered to make the whole chapter available for FREE download for all Sell It! readers.