Why Affiliates Do Poorly With Most Affiliate Programs
So “What is an Affiliate Program?”
Affiliate Programs, also known as Associate Programs are just a way companies get massive traffic, sales or members without the need to personally recruit new people for their business.
If you are familar with Network Marketing in the real world you will have no problem understanding Affiliate Programs.
These companies recruit a sales force that only gets paid when they make sales or give direct referrals or leads.
As an affiliate you promote their products and services. In return they will pay you a commission for each sale or membership you sell on their behalf.
How and when do you get paid?
What is the pay out or commission structure?
How many levels or tiers will you get paid on?
1. Do you get paid even if you are a free affiliate, or do you have to be a paid member to earn commissions?
Note: If you are working with an affiliate program that allows you to join for free and you sign up others that are joining for free you will have a hard time earning any money.
2. How often are checks sent out and is there a minimum amount you must earn before you get paid?
If you have to earn a $100 before you get paid you could be waiting a while. Pay attention to the pay out structure of any program.
3. Do you get paid for direct sales and sign ups only or can you earn money on multiple levels or tiers? Do you get paid for the sales your affiliates make?
Here are two examples of pay out plans.
First scenario: Single level or tier sales:
You only get paid for the direct sales you make.
You join a program that costs you $19.95 a month to be a paid member and pays you $10.00 a month for each affiliate you sign up that will pay the $19.95 each month for the products and services the company provides.
You sign up 10 people that pay $19.95 a month and you earn $10 from each person. You are sent a $100 check each month as long as all ten remain as paying affiliates.
With this program you only make sales on people you directly sign up and only for the sales you make yourself.
For you to make more money you must sign up more people willing to pay $19.95 each and every month.
This is a single tier program. You only get paid for your direct sales or sign ups.
Second Scenario: Multiple levels or tiers:
You also get paid for your affiliates sales.
You join a program that pays you $10.00 a month for each of the affiliates you have directly signed up, but you also get $3.00 when your affiliate signs up a paying member or makes a sale.
Those same 10 people will still earn you $100 each month just like the single tier, but now it gets more interesting.
Each paying person your affiliates signs up or for each sale they make will earn you another $3.00.
If each of your 10 affiliates sign up 5 new affiliates that will pay the $19.95 each month you will earn $3.00 times 50 people. So you will earn an extra $150 each month.
Now you are earning $250 instead of $100.
Now think about it for a minute. Okay, times up. Which plan do you think is the better one?
Most ebusiness owners are either too intimidated by affiliate programs to do anything, or they jump right in over their head.
Both suffer because of it. The first person never gets to know the positive impact on ones finances affiliate programs have, while the other never learns the ropes and gives up which leaves them in the same position as the first person.
There are a lot of great affiliate programs available, actually so many it can be difficult to choose one, and that is when the cycle starts all over.
What is the solution to this problem?? Believe it or not the answer is quite simple. DO RESEARCH!! Ask and you will receive.
If you really want to be a good affiliate and create other good affiliates don’t assume things. You need to know what your are doing.
Remember – Knowledge Is Power, but…
… The Power Only Comes When You Act On The Knowledge.
What’s the plan than?
If you are completely new to affiliate programs you should be seeking help from people that you have learned to trust.
These people can give you the heads up on the affiliate programs they are familiar with. Never be afraid to ask for help.
A recommendation goes a long way. Credibility is on the line every time someone recommends something. For this reason your trusted friend should be giving you accurate information.
If you are already in an affiliate program and totally lost as to your next move you should be contacting those that are in the same program but have already figured it out. Again, if you don’t ask questions you will most likely not get any answers.
But I have just started and I don’t know anyone yet. Okay that’s fair.
If this is you I would say you go to Google and do a search for
“affiliate programs forum” or “affiliate programs” forum
This will give you a list of forums that you can participate in. Once you are on the forums you can read the messages that other people have left.
Look through the posts to see how business is conducted so that you won’t say or do something against there policies.
Where better to ask for help than a place where like minded people hang out and share their experiences online.
Don’t overlook forums, they are a source of valuable resources.
Here are some of the questions you should be asking people:
1. Do their products or services meet a need? If you are not meeting a need you are going to have a hard time promoting and sell the products and services.
2. Is this a single tier or 2 tier program. Remember the above example. 2 Tier is going to allow you to earn more doing less. Keep in mind that even single tier programs can earn you large quantities of money. So pay attention to the selling price and the pay out you will receive.
3. How often and how to you get paid? How much do you have to have on account before you get paid? If there is a minimum amount you may have to wait a while before you see a check.
4. What kind of support system do they have in place? Are you able to ask questions and get answers right away. Can you see what your commissions are in real time?
5. How much does it cost to get started. Most affiliate programs will let you start for free and that can be enticing. Then you find out that is costs $100 to actually start making money.
6. Are you required to have your own web site? This is an added expense and may be a surprise that you don’t need.
To summarize, you need to research the programs you are curious about and be sure to go to forums where like minded people hang out and ask lots of questions.
Look for affiliate programs that have a great support system and are easy to learn.
Consider the levels you can get paid on. You may find that a two-tier program will create more income with less work. Not without work, but with less work.
Related Article: How To Choose Your Affiliate Program