Setting Up Your Affiliate Marketing System

An affiliate programs is one way for a business to generate a lot of traffic that will in turn increase sales by being promoted by third party affiliate sites. It's also a cost effective way to get your product or services advertised since you’re the creator of the product or service and your affiliates spend their own dollars to promote them.

For some people setting up an affiliate system can be either easy, but for others it can be overwhelming, depending on how many affiliates are recruited, the payment policy and the type of product that you’re offering.

Regarding your affiliate systems, there are two main options – you can outsource the entire system or you can run your affiliate system on your own web host. Each of these options have their own advantages as well as disadvantages.

If you only have a few affiliates, then it’s relatively easy to operate your own affiliate software. However, if you expect you’ll be recruiting a lot of affiliates, you may consider outsourcing. This will make it easier to deal with a large number of sign ups, track payments, monitor clicks, etc.

Types of Affiliates

There are many types of affiliates systems you can setup. There's pay per sale, in which an affiliate is only paid if a sale is generated from the affiliate's link. This is the least attractive to people, unless the product is in high demand and the most profitable for business.

Another type is pay per lead in which you pay just for traffic. With this type, the affiliate is paid only if a visitor is generated from the site of the affiliate. This is popular with affiliates although it can be costly for web site owners depending on how well this traffic converts to sale.

Some Things To Consider

When you set up an affiliate, you should consider whether or not you'll approve affiliates manually or automatically. It's normally recommended to start affiliate programs with your established customer sites then progress to new ones.

If you’re having to deal with a lot of pay per clicks, you may have to control the affiliates since the quality of visitors will be a major factor when it comes to generating sales. When you manually review, you'll be able to judge the website or individual affiliates to determine if it's in the best interest of your company.

If you decide to use your own affiliate system, one of your major challenges is how to pay affiliates a percentage of sales. To do this, you can rely on software, such as JV Manager, to help you track and manage commissions.

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