What is the cost of an affiliate program for advertisers? At what cost should you look if you manage an affiliate program? I tried there to provide an overview as complete as possible. Finally still address the question of where to look for when choosing a network.
1. Network Costs
Below I will explain each part of the cost of an affiliate network.
Start an affiliate program you (exceptions) for in an affiliate network. The largest networks in the Netherlands zanox, Daisycon and TradeTracker. These networks provide the measurement of the orders, promotion of the program and the recruitment and payment of the affiliates. The advertiser will receive once a month an invoice from the network. But what's on such a bill?
Cost affiliate network
An affiliate network works largely performance-based. That is, a margin is calculated on the affiliate fee. It works like this: an affiliate receives a commission on a sale or lead made (for example, 10 percent of the order value). An order value of 100 euros is 10 euros. 10 euros is the amount received by the affiliate for the arranged sale. About this affiliate fee of 10 euros the network calculates its storage. At a premium of 1.25 are your final cost 12.5 for this order. The level of the network varies per network, per advertiser per industry.
In addition to the network per order calculate networking start-up costs, licensing fees and traffic fee's. These are one-time or monthly fee for the use and maintenance of the interface and the hours are used for starting and promoting the program. These costs vary per network.
Why are there differences in the network?
Because there is paid to an affiliate network by registered order, the network has benefited from a successful affiliate program. If through your affiliate program registered 100 orders per day and the affiliate network receives a network of 1.25 per transaction, the network earns 25 Naira, Dollar, or Euro per day. At 10 orders this 2.50 per day. An affiliate program with a lot of potential to justify a lower network.
The potential of an affiliate campaign is depending on the industry, the competition, the conversion of the site, the number of quality affiliates, the program conditions, the affiliate fees and other factors.
2. De-duplication of orders
If you work with multiple networks, you have a chance that one order is registered with two networks. Prevent you pay twice to be replicated by the same order. Put the monthly or bi-weekly inspection of the orders of the networks together lists and check which orders have been registered in both networks. Adopt good sale with the most recent click ( 'last cookie counts).
If you can use within the affiliate channel conversion attribution, you can choose to distribute the compensation as the affiliate of the first click has played a role in the purchase process.
Percentage value to classroom
Upon conversion attribution is the online route of a customer from the first contact to buy a product or service mapped. Is then given a percentage value to each contact time. In this way, the online marketing budget can be divided. One such route can be AdWords> affiliate site> Facebook> organic> AdWords> Affiliate> sales. It is also possible to make use of within the affiliate channel of conversion-attribution. It is then looked at all the clicks registered in the affiliate channel.
3. Affiliate fee
it is important for a successful program in order to have a competitive affiliate-compensation. Affiliates are commercially and want their website, email, file, or Facebook page yields as much money as possible. But what is equally important, the deals and the conversion of the advertiser compared to the competitor's website.
A telecomvergelijker has two offers for iPhone 6 subscription on his website:
1 advertiser is offering a free iPhone 6 with a subscription of 40 euros per month.
Ad 2 is offering a free iPhone 6 with a subscription of 45 euros per month.
Advertiser 1 provides an affiliate fee of 30 euros.
Ad 2 is an affiliate fee of 50 euros.
The affiliate-fee is in favor of Ad 2, but consumer offer is in favor of the conversion advertiser 1. In the above example the advertiser will be most promoted. If the advertiser offering the best offer on the basis of the transmitted clicks twice as much conversion yields, then the advertiser with the higher affiliate fees will win one advertiser.
If the offers are always sharper than the competition, it can be adjusted to the affiliate fee down without compromising the numbers. Affiliates look at what constitutes a click in combination with the volume of clicks they can send. On this basis, determines the degree of promotion. By knowing what is your position in your market, you can determine the most ideal affiliate fee. A fee whereby the affiliate is satisfied with the yields and the advertiser is satisfied with the cost per order is the goal.
4. Choice affiliate network
What to look for when you want to start as an advertiser with affiliate marketing when choosing an affiliate network?
There are many various networks in the Netherlands with all those sectors in which they are specialized. At zanox include connected nearly all providers of telephone subscriptions. Because these telecom players are all connected to the same network, you can assume that the main affiliates (comparison but Apple and Samsung blog) to obtain telecom are at zanox. In addition, the account automatically have a lot of industry knowledge. This may be a reason to choose the telecoms advertiser zanox.
However, the wide range of telecom advertisers may also be a reason to choose not to zanox. The assumption that you are 'one of the many telecoms advertisers' is within the network can ensure that your affiliate program stand out enough. In addition, it is possible that there is too little attention paid to your affiliate program because the network "more important" has telecoms advertisers.
A network that is ready to run hard for you and fewer affiliate programs managed by your direct competitors, could be successful. It is important to take these considerations into your decision for an affiliate network. In addition, the costs, and especially the network, essential when choosing a network.
I hope my article helps when starting up or evaluation of your affiliate program. I'm curious about your experiences with affiliate marketing and cooperation with the networks. Let me have your comment below.