Making an offer attractive for affiliates

Moxxy

New member
Jul 10, 2009
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Please ignore my other post, I used a bad word so I thought I'd start again and provide tits.

I'm a coder and marketing isn't my strong point. I'm building a site that provides a service to businesses. It will need to get affiliates on board so I'm asking you guys what will make it worth your while.

It's a pay as you go service and basically what the client is paying for is going to improve their own bottom line each time they use it so it's got good potential for a long term revenue stream from each client.

My initial idea for a price model was not to charge the client for initial membership but only as they use the service. Basically because the more that are signed up the more useful the site will be for customers. Once they have membership they'll have plenty of incentives to use it and start paying.

Given that I'm not strong in marketing I want make the model attractive for affiliates to promote. I was thinking the affiliate commission would be a lifetime share in revenues generated by the customer (somewhere between 30-50%). But because there's no upfront revenue from the customer it means no affiliate payment until the revenue starts coming in. Given that revenues for mid to high end customers could be in the hundreds - thousands per year and could continues for many years is this an attractive model from an affiliates point of view? Or is the instant gratification of an upfront payment more important?

If upfront payment was an essential part of the mix would a tiered system be viable from the marketers point of view? e.g. client can take a premium or super-premium level of membership by prepaying say $40, $80 of fees at signup. Either for additional benefits or for billing discount (e.g. $80 signup = $160 account credit) Customer has the option of taking the free membership but the affiliate can push the premium membership (even using a signup page that doesn't mention the free membership option).

As I said I want to find out what's going to make it an attractive offer for affiliates to promote. Getting good marketers on board is going to be key so I'm willing to alter the entire conceptual design if necessary to make a model that works well for affiliates.

Boobage follows:


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Given that I'm not strong in marketing I want make the model attractive for affiliates to promote.

You lost me right here. Why would affiliates promote a product whose owner is not strong in marketing?

I would want you to do your legwork and testing first, then tell me what already converts and why. Why would I do market research for you?

First make it work yourself then worry about recruiting affiliates by sharing how you made it a success.
 
If I was an expert affiliate marketer why would I want affiliates to take half my revenues? Isn't that the whole point?

I don't need market research done, I've talked to plenty of people who are my target type of customer, I know the service has demand so I'm creating a service to meet it which is what I'm good at. What I'm not good at it is getting it in front of the faces of lots of people. Maybe I am good at it but I don't know because I haven't tried. It would seem a bit pointless to spend months learning the trade when there's a whole industry full of people out there who specialize it doing that.
 
I think your approach is wrong.. while lifetime commissions sounds like a great idea, there is a reason why most affiliate programs do not work that way...

One thing you need to consider is, if you plan on going live on several ad networks, it is very rare for them to support that type of affiliate commission model.

Almost all networks are going to work on either a CPA or percentage of sale basis.

The second image of the blonde is beyond amazing by the way..
 
If I was an expert affiliate marketer why would I want affiliates to take half my revenues? Isn't that the whole point?

I don't need market research done, I've talked to plenty of people who are my target type of customer, I know the service has demand so I'm creating a service to meet it which is what I'm good at. What I'm not good at it is getting it in front of the faces of lots of people. Maybe I am good at it but I don't know because I haven't tried. It would seem a bit pointless to spend months learning the trade when there's a whole industry full of people out there who specialize it doing that.

It does not matter who you talked to. Until you have built and tested the offer you do not know if it will work.

Once you have success the point of having affiliates is to find new marketing angles, traffic sources and manage the actual campaigns. You have to sell them on why they will make money promoting you, not the other way around.

Affiliates are in business of minimizing risk and maximizing profit. A merchant that cannot tell them what works already is a huge red flag.
 
I think your approach is wrong.. while lifetime commissions sounds like a great idea, there is a reason why most affiliate programs do not work that way...

I can think of two downsides to this model from the affiliates POV:

1/ no immediate payment (which can be dealt with)
2/ trust. How does the affiliate know they are getting paid what should be month by month.

Is that basically the why of it or is there something else?

One thing you need to consider is, if you plan on going live on several ad networks, it is very rare for them to support that type of affiliate commission model.

was actually considering running it in house. It solves some problems for me but I'm sure it creates others...
 
It does not matter who you talked to. Until you have built and tested the offer you do not know if it will work.

Fair enough... I am building it right now. What I'm trying to work out is how to build it so it's a good offer for affiliates, part of that is the business model which will affect the affiliate payment model. So if I find out what affiliates want now I can build to suit.

I'll worry about doing all the things I need to do to convince affiliates of it's worth when it's built. Right now I'm focusing on making the offer have the right attributes so it can be sale-able IF it works.
 
Payout really doesn't matter much if it isn't converting. Find out your conversion rates on the lander, and then decide how much you need to pay to make it interesting for affiliates.
 
Payout really doesn't matter much if it isn't converting. Find out your conversion rates on the lander, and then decide how much you need to pay to make it interesting for affiliates.
Very good advice here.
 
Yeah.. I'd have to completely disagree with you mccc27. Actually a lot of affiliate programs work like this, and for upper level system (100-1k like OP describes), this is hella profitable.

As the person above me stated, the only thing that matters (for the most part) is conversions...
Specifically these three factors:

1. What is the conversion on the lander?
2. What is the conversion from the free trial to paid features?
3. What is the average commision I'll receive in a year based on what on average the person will buy in a year.

And finally... In one year, what will a subscriber for the free trial generally make me? (that means out of a certain amount of subscribers to the free trial, how much revenue will be made...)

Basically, we're trying to figure out how much each free trial subscriber is worth in a year (non-paying or paying, and it does this by averaging). If we know this, and we know the conversion on the lander, Affiliate should be happy. AS LONG AS THE NUMBERS LOOK GOOD!

I think your approach is wrong.. while lifetime commissions sounds like a great idea, there is a reason why most affiliate programs do not work that way...

One thing you need to consider is, if you plan on going live on several ad networks, it is very rare for them to support that type of affiliate commission model.

Almost all networks are going to work on either a CPA or percentage of sale basis.

The second image of the blonde is beyond amazing by the way..
 
Actually I'll rephrase, mccc27 is right in a way...

If the commission is only going to be $100, and spread over a year, it kind of destroys cashflow.

That means a couple of things: the niche has to be really "tight" (yes, I realize the referenece), and it has to be really cheap to enter. Meaning that if this niche is actually highly competitive, and that is your payout structure, affiliates wont be able to afford to market your product/service.

Basically, you have to maximize the: average revenue in a year you'll make off a free trial.

Try to push that $100 more in the $1000 range.

The bigger the margin, and the less competition, the more affiliates will be willing to promote your offer.
 
Yeah, pretty much the biggest thing you can do to make your offer attractive is to have it convert well and have your landing page be incredibly optimized and tested before it hits the publishers. If you say you're not good at marketing, then you are going to need to hire someone to do that for you. Nobody will promote your offer if it doesn't convert, and it won't convert if the person who made it isn't good at what they do. You might be able to get initial publishers to give you traffic, whether or not you run it in house or are able to get it on a CPA network (which for most is unlikely for SAAS types of things, so in house is your best bet), but if it doesn't convert and doesn't give your affiliates a good ROI they will just stop and move on to something else. So there is 1) attracting initial affiliates, but 2) even more important for your long term success is making them profitable and having a good epc/conv. And then on your end you might want lots of upsells/downsells/cross-sells and a killer sales funnel - that way you can give a high initial payout to your affiliates that will make them want to continue promoting, a payout that would seem too high, if only you did not have a sales funnel to make it back and more. That's the nature of infoproducts and the reason why many affiliate programs like on clickbank can pay 70% of the sale, the post-cart or horizontal-cart sales opportunities as well as the data gathered.

However, if this is going to be going toward businesses your approach needs to vary because maybe your upsells and downsells are different than what's normally implemented, or maybe they're not immediately necessary and you can forgoe that step for now. Can you provide some more info about your product and your target type of businesses?
 
^^^^ Great info.

Yeah again, if your going to do rev-share the whole way, it's important not only to convert on the front-end, but also on the back-end. Basically, if you're doing revshare, you have to have aggressive up-sell, down-sell, cross-sells like dubbyah said, but include that in the revshare and tell affiliates about it.

OR

Figure out how much you can pump with all those up-sell,etc methods, and than just offer a fair upfront payment (b/c you'll make it back)... basically what dubbyah said
 
Can you provide some more info about your product and your target type of businesses?

What I'm reading into most of your responses is that what affiliates really want is as much certainty and measurability of outcomes as possible. Makes sense particularly in the case of PPC based affiliates. Does the game change any for other marketing methods like email/SEO where there is less of fixed cost per lead?

I can't give too much detail but the product is applicable to a very broad range of businesses so within that spectrum there would be many niches which will probably have different characteristics for conversion rates, CPC, average commissions etc. Various niches will probably also have different responses to different types of landing pages as well. So providing those kind of metrics is going to be hard but if that's what needs to be done then so be it.

Is the presence of many different niches a plus or a minus from your point of view? On the downside obviously hard stats will be harder for me to deliver for affiliates. On the upside, affiliates have a lot of scope for avoiding competitive niches of the product?
 
Yeah, pretty much the biggest thing you can do to make your offer attractive is to have it convert well and have your landing page be incredibly optimized and tested before it hits the publishers. If you say you're not good at marketing, then you are going to need to hire someone to do that for you. Nobody will promote your offer if it doesn't convert, and it won't convert if the person who made it isn't good at what they do. You might be able to get initial publishers to give you traffic, whether or not you run it in house or are able to get it on a CPA network (which for most is unlikely for SAAS types of things, so in house is your best bet), but if it doesn't convert and doesn't give your affiliates a good ROI they will just stop and move on to something else. So there is 1) attracting initial affiliates, but 2) even more important for your long term success is making them profitable and having a good epc/conv. And then on your end you might want lots of upsells/downsells/cross-sells and a killer sales funnel - that way you can give a high initial payout to your affiliates that will make them want to continue promoting, a payout that would seem too high, if only you did not have a sales funnel to make it back and more. That's the nature of infoproducts and the reason why many affiliate programs like on clickbank can pay 70% of the sale, the post-cart or horizontal-cart sales opportunities as well as the data gathered.

However, if this is going to be going toward businesses your approach needs to vary because maybe your upsells and downsells are different than what's normally implemented, or maybe they're not immediately necessary and you can forgoe that step for now. Can you provide some more info about your product and your target type of businesses?

Why can't you break it in fucking paragraphs .... nice info but who can read this shit man!
 
What I'm reading into most of your responses is that what affiliates really want is as much certainty and measurability of outcomes as possible. Makes sense particularly in the case of PPC based affiliates. Does the game change any for other marketing methods like email/SEO where there is less of fixed cost per lead?

I can't give too much detail but the product is applicable to a very broad range of businesses so within that spectrum there would be many niches which will probably have different characteristics for conversion rates, CPC, average commissions etc. Various niches will probably also have different responses to different types of landing pages as well. So providing those kind of metrics is going to be hard but if that's what needs to be done then so be it.

Is the presence of many different niches a plus or a minus from your point of view? On the downside obviously hard stats will be harder for me to deliver for affiliates. On the upside, affiliates have a lot of scope for avoiding competitive niches of the product?

Make it dead stupid simple. Nobody wants to promote some vague shit "applicable to a very broad range of businesses". Find one thing that works best and show affiliates how exactly they can make monies from it. Affiliates have short attention span, you are competing for their attention with merchants who know exactly what they are selling.