Month: December 1997

Set Up a Win-Win Affiliate Program (1)

Set Up a Win-Win Affiliate Program Strategies to keep your affiliates happy and successful. by Tom Gerace There’s been a lot written in recent weeks on affiliate networks: how to build them, how to overcome the network management hurdles, etc. No one seems to doubt that they are a great way to sell; Forrester Research reported that product links embedded into affiliate site content are twice as likely to result in a sale as a banner advertisement (Forrester’s “Syndicated Selling” report, dated December, 1997). Moreover, Forrester found that affiliate network links cost a fraction (1/10th) what banner ads did, when banners are purchased on a CPM model. With those numbers, and because affiliate network selling directly aligns marketing costs with sales results, it’s clear that affiliate networks are here to stay. The questions remain: what does a retailer have to do to build these networks, make them profitable, and keep their affiliates as long-term partners. This last question is critical, as many large retailers in bookselling, music, travel and other areas are beginning to compete heavily for affiliate relationships. This competition for affiliate sites is certain to grow as affiliate networks continue to prove themselves as a means for selling. We’ve helped a number of on-line sellers build and operate networks, either to dominate their space online or to catch up with an earlier competitor. In our experience, we’ve...

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Set Up a Win-Win Affiliate Program

Set Up a Win-Win Affiliate Program Strategies to keep your affiliates happy and successful. by Tom Gerace There’s been a lot written in recent weeks on affiliate networks: how to build them, how to overcome the network management hurdles, etc. No one seems to doubt that they are a great way to sell; Forrester Research reported that product links embedded into affiliate site content are twice as likely to result in a sale as a banner advertisement (Forrester’s “Syndicated Selling” report, dated December, 1997). Moreover, Forrester found that affiliate network links cost a fraction (1/10th) what banner ads did, when banners are purchased on a CPM model. With those numbers, and because affiliate network selling directly aligns marketing costs with sales results, it’s clear that affiliate networks are here to stay. The questions remain: what does a retailer have to do to build these networks, make them profitable, and keep their affiliates as long-term partners. This last question is critical, as many large retailers in bookselling, music, travel and other areas are beginning to compete heavily for affiliate relationships. This competition for affiliate sites is certain to grow as affiliate networks continue to prove themselves as a means for selling. We’ve helped a number of on-line sellers build and operate networks, either to dominate their space online or to catch up with an earlier competitor. In our experience, we’ve...

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