11 Ways To Create A Successful Affiliate Marketing Program

Affiliate marketers are being revitalized due to the decrease in the effectiveness of traditional advertising and the surge of social media. However, how can you take advantage of this chance?

1. Set your goals

Choose your target audience. Identify the kind of clientele you wish to entice through your affiliate initiative. Which types of potential affiliates, such as bloggers, will assist you in achieving your objectives?

Establish achievable objectives with regards to:

The amount of revenue you aim for affiliates to bring in either monthly, quarterly, or annually.
The average order value (AOV) each affiliate drives. Also, set goals for the number of unique sales driven by affiliates over a given period.
Clicks, impressions, and leads are other measurable targets to follow – as are, of course, affiliate sales.

Collecting multiple metrics is beneficial in assessing your achievements. Utilizing a comprehensive analytics system facilitates effortless monitoring and evaluation of these metrics.

For those with limited time, in-house work may not be feasible. However, affiliate networks provide a comprehensive marketing system that can quickly get you started. Although there is a fee involved, the long-term savings in time, money, and effort will make it worthwhile.

You can read more about getting started in our guide to managing an affiliate program via the SaaS route.

3. Decide which products you will include in the program

Keeping up with current trends is essential when determining what products to sell in performance marketing, which is a major contributor to ecommerce sales and surpasses social commerce and display advertising. This applies to both established businesses and newcomers in the ecommerce industry.

When choosing products for affiliate programs, it’s important to remember that not all of them will be suitable. Some products may require an in-house salesperson who is knowledgeable about its features and benefits. Moreover, some affiliates may not have the appropriate audiences for certain products. Take these factors into account before selecting the products that you want your affiliates to promote.

Affiliate programs typically focus on top products in the fashion, health and beauty, sport, and outdoors categories. In 2021, Eddie Bauer was identified as one of the most successful fashion affiliates.

4. Choose high average order value (AOV) products to promote

To begin with, you need to select the items that you wish to incorporate in your affiliate program. While you can add all of your products, it is advisable to concentrate on products with high AOV in order to boost the revenue and affiliate earnings per click.

Consider this: Offering a 10% commission on an $80 product appears more appealing in comparison to a 10% commission on a $5 product. Provide affiliates with clear instructions on which products to showcase and present them with a few promotional pointers, such as:

Promoting free shipping on orders over $50. Nine out of 10 shoppers say free shipping is the number one incentive to shop more online.

Offering a first-time buyer discount. Give new customers an extra discount for their first purchase. You can then remarket to them through email and Facebook ads.

Buy more, save more discounts. Offer a scaled discount sale to increase average order value. For example, save 20% when you spend $50, or 25% when you spend $100.

By providing affiliates with useful merchandise and marketing advice, you can enhance their sales performance, resulting in increased sales for your enterprise. Adjustments can be made to your affiliate program by including or excluding items and refining your message, if necessary, in order to improve results.

5. Decide your affiliate pricing and commission

After selecting your desired products, it’s crucial to determine the commission scheme that suits you. Monetary compensation is the most desirable incentive. While a few ecommerce brands offer free products or store credit, it’s best to prioritize cash.

Afterwards, the rate must be established. There are two options available for this.

Percentage commissions, or a percentage of each affiliate sale

Flat-rate commissions, or a set dollar amount for each sale

According to

ReferralRock, the most common is percentage commissions in affiliate programs, with the average commission being between 5% and 30%.

HeyCarson, known as Shopify experts, segregates affiliate commissions based on categories, offering commissions that fall in the 10% to 40% range of the sales made. In contrast, Amazon’s commission income rate varies from 1% to 20% depending on the products being promoted.

Select a rate corresponding to your aforementioned category to begin. You can modify your pricing if it does not suit your business. Alternatively, you can generate distinct offers utilizing multiple commission categories.

6. Decide on affiliate commissions

When determining commissions, it’s important to be practical. Include the expenses associated with obtaining new clients and generating income. Don’t forget additional costs like shipping and order fulfillment for physical goods. Keep in mind that physical products typically have lower commission rates due to substantial transaction fees. Alternatively, digital products and services have no fulfillment expenses, resulting in higher commission rates.

If you choose to pay affiliates based on pay per lead, click, or sale, anticipate commission rates ranging from 1% to 30%.

7. Establish your affiliate program policy and structure

In order to attain triumph in your affiliate program, it is essential to devise a guide for the program and incorporate performance criteria. Clearly define your anticipated number of commission-generating transactions per affiliate on a quarterly basis.

It is important to know the marketing channels and tools that new affiliates intend to utilize to attain their objectives, including:

Their own email list to carry out email marketing;
Social media posts on, e.g., Facebook, Instagram, or LinkedIn;
Webinars.

Determine the methods for affiliate marketers to advertise and share their links, as well as the duration for which affiliate cookies will be operational – in other words, the period during which affiliates can earn commissions following a click on their link.

To ensure that all terms and conditions are taken into account, utilize performance marketing templates. In the event that you choose to create your own affiliate program policy and rules, we suggest covering the following subjects:

When you make payouts to affiliates and how;
Which promotional methods or marketing channels are allowed and which are restricted;
Which keywords are allowed;
What physical products or affiliate product categories (discounted, low priced, etc.) excluded from your program;
Other cases when affiliate action will be banned.

8. Select an affiliate platform

Expanding your program becomes easier as your affiliate network grows with the help of an affiliate platform. The platform you choose should facilitate partner communication and streamline payment processes. Additionally, it should aid in managing:

Offers;
Campaign analytics with advanced tracking and reporting features;
Optimized ad campaigns;
Partner commissions.

8.1 Refersion

Being an immensely robust affiliate platform, Refersion has garnered a rating of five stars with more than 879 reviews. This is a must-try app, providing a comprehensive affiliate and influencer marketing platform that facilitates the quick launch of a program.

It’s simple to hire, monitor, and compensate affiliates using Refersion. In addition, Refersion provides access to a database of more than 5,000 potential collaborators for all its clients. The best part is that Refersion grows alongside your business. Begin with a free trial of the professional plan, and when your affiliate program needs to expand, switch to the Enterprise plan.

8.2 LeadDyno

LeadDyno is a well-known affiliate marketing plugin that achieved more than $200 million in affiliate sales last year. It provides excellent customer service using various channels including live chat, email, and phone. With LeadDyno, you can conveniently monitor transactions made via affiliate links and coupons and leverage its features to motivate, incentivize and compensate affiliates.

With just a few clicks, it’s easy to integrate LeadDyno into your Shopify store and customize it to your liking. You can use PayPal, Dwolla, or even Coinbase to pay your affiliates automatically or with one-click approval. LeadDyno will calculate and distribute affiliate commissions instantly for you.

You can try LeadDyno for free for 30 days before choosing to subscribe. The Starter package’s monthly charge starts at $29.

8.3 UpPromote

With more than 1,270 reviews, UpPromote is recognized as the best affiliate marketing application available in the Shopify App Store. This all-in-one influencer and affiliate marketing solution makes it simple to create a professional affiliate program through automation.

In just a few clicks, you can take charge of your affiliate program. You have the ability to establish standard commissions, personalize registration forms, and effortlessly arrange payments. Additionally, there are resources available to turn your customers into affiliates and a powerful tracking system to monitor click-throughs and conversion ratios.

With UpPromote, you can try out their services for free for a period of 3 days, and even after that, they offer a free plan that allows you to have an unlimited number of affiliates. If you choose to upgrade to a paid plan, prices start at $21.99 monthly. Your preferred option should come with an easy-to-use interface, the appropriate features and plugins, solid fraud detection, and excellent customer support.

9. Prepare your affiliate marketing collaterals

Providing a range of pre-made online marketing materials, such as email templates and banners, will be beneficial for all affiliates in promoting your products and services. This will ensure that your brand message is consistent across all platforms and channels.

It is important to constantly update your marketing materials to ensure that your affiliates always have access to the most relevant and effective resources.

10. Find the best affiliates

Although extensive affiliate networks have the advantage of accessing numerous affiliates, it’s still feasible for small businesses to acquire their own affiliates. If searching for affiliates, ensure they possess the subsequent characteristics:

Their own platform, full of quality content. That way, you’ll know they’re committed to their own success.
They’re choosy when it comes to the products/ services they promote, so your program has credibility in their customers’ eyes.
They have an understanding of marketing – a knowledge of SEO (search engine optimization is always useful; this will help affiliates market your products/ services more effectively
They have robust sales funnels of their own. Many affiliates already work with several brands or networks which means they can provide you with the right skills and experience to help you get great results
They share your niche or sell complementary products to yours. When they’re promoting your products with referrals, it’s probably something their audience wants or needs.

After gaining knowledge on identifying suitable affiliates, it’s time to proceed with the next step. For additional information on locating trustworthy and efficient publishers, refer to our all-inclusive manual.

11. Manage affiliates

It is important to monitor your recruited affiliates and the progress of your program. Maintaining regular communication, preferably through email, is crucial to building a robust affiliate program as it is the preferred mode of contact for many affiliate marketers.

Ensure that your program’s regulations and brand are well comprehended by your affiliates. Offering a range of resources such as tutorials, webinars, graphics, pre-written social media posts, and a list of authorized (or compulsory) hashtags can promote consistency among all affiliates.

It is vital for long-term success to comprehend the efficacy of your affiliate scheme. To optimize results, it’s important to pinpoint your leading affiliate marketers and reinforce their tactics. Why are their methods fruitful? Did they exhibit a strong devotion to your brand before becoming an affiliate? If so, you may want to reach out to your frequent shoppers and encourage them to join the program.

Here are some metrics that require additional attention:

Total affiliate sales
Sales per affiliate
Average order size (especially compared to sales not attributed to affiliate marketing)
Total payout
Payout-to-sales ratios
Gross margin
Total number of affiliates
Number of new affiliates
Number of affiliates who’ve left the program