You may not be aware of the various aspects that you should plan from the beginning stages of implementing your affiliate program so that it can grow with the business.

Most people tend to forget that when you start having affiliates that are promoting your site you will be swept off your feet managing orders, refunds, taking care of customers, managing the business etc

Below is the basic aspects you need to consider before launching your affiliate re-seller program.

How Much Commission Are You Going To Pay?

The most important factor you need to remember is the more you give, the more you get. Put yourself in your affiliate’s shoes if you get 30% commission promoting XYZ Company’s product why on earthwould you promote ABC Company who only offers 5%.

There are 3 ways to pay your affiliates and they are by:

1. Pay per Click: You pay the affiliate $X.XX amount each time they send you a visitor.

2. Pay per Percentage: You pay the affiliate a percentage of the total sale amount. You might set it to pay 20% of the sale total.

3. Pay per Sale: You pay the affiliate a fixed amount when they sell your product.

Informational products are great with affiliate programs because you do not have the overheads of a physical product to make and ship so you can afford to give a higher commission.

Will you have a minimum payout level before paying your affiliates?

This depends on a variety of factors before you can decide on whether you will have a minimum payout level.

If you pay all your affiliates by Paypal then a minimum payout level is not necessary because you can send any amount to everyone without excessive fees.

With cheques, you need to consider how much it will cost to post and the bank fees involved. If you’re paying $10 a sale and a bank cheque cost $20 to create + you need postage than in this case it would be wise to set a minimum payout level.

Most people set it at $50.00 especially if affiliates can choose to be paid by cheque. Either way do your sums and make sure you will not be out of pocket.

Side Note: Make it clear on your affiliate sign up page that there is a minimum payout otherwise people may be angry if they find out later on.

Will you have a 1 or 2 Tiered Affiliate Structure?

A 1 tiered structure is very simple and easy to manage. Eg: Joe signs up for your affiliate program and for every sale he makes he gets $10 in commission.

A 2 tiered structure is a bit more complex but allows you to expand your affiliate program without you manually searching for affiliates.

Eg: Like above Joe signs up to your affiliate program and for every sale he receives $10 in commission. Joe advertisers your affiliate program to Billy who signs up.

Each time Billy makes a sale he gets $10 in commission. Now because Bob referred Billy, he makes an extra $5.00 when Billy makes a sale.

Boost Your High Earners from the Start to Keep Them Loyal

The reason you should aim to boost affiliates commissions is to show your appreciation and to keep them loyal. You do not want high traffic commission earners dropping your program and joining yourcompetitors.

This can also be a great incentive to recruit new affiliates.

Here are some examples of ways you can boost commission…

1. If they make XX sales then they receive more commissions

2. If they make XX money then they receive more commissions

3. If they do either of the above you might credit them with an extra lump sum of XX amount

Always take care of your affiliates as it is a win-win situation. Your success depends on how well they do so keep them happy.

Today, we still have affiliates that have been with us from when we first started back 6 years ago. After all when they do well so will you.

Chris Elmore