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The Internet is an awesome phenomenon. Think about it. To become
an affiliate for a Fortune 500 company can cost thousands of
dollars and takes time. The Internet has opened a whole new
world of money making opportunities. I should know. I left my
consulting business to become a partner with AIS Media.
It seems like just yesterday, but a year has already passed.
During this time, I have seen many programs to make money come
across my email. I guess I’ve become somewhat immune to these
offers, as cynical as it may sound been there done that.
When I was asked to join the company, one of my main
responsibilities was to increase the closing ratio of
applications to actual set up merchants. In my endeavor, I
experienced some disappointment. Certainly not in our closing
ratio (it went from .002% to an average of 18%), but what I was
finding in the way of competing programs astounded me. Programs
offering from $50.00 per account to over $250.00, quite a
difference.
Sure I, like everyone else, want to make as much as possible for
my efforts. Keeping that in mind, let me tell you how we got
here. Fourteen months ago, we launched an affiliate program that
offered merchant services (online credit card processing) and we
outsourced the leads (a lot of companies do this) to what we
thought were several good companies.
Our experience was horrible and within two months, we were in
the process of bringing it in-house. What was so bad about
outsourcing? The companies to which we were sending leads were
closing only .002%! Sure they were offering us $300.00 per sale,
however they weren’t paying us on all the sales they made. I am
still receiving emails from merchants who signed up with us, yet
we were never paid the commission on these merchants!
Okay, so enough about us and our trials and tribulations. Let’s
talk about what makes a good program. It is simple; the bottom
line is the closing ratio. Look, if someone is offering you
$200.00 per referral, you have to consider a couple of things:
1. Will they pay me on each and every completed application? 2.
How many applications do I have to send their way in order to
receive my commission (what is the closing ratio)?
Then there are those programs offering just $50.00. Consider
this: If they are only paying $50.00, how are they competing?
The answer: they pay!
If the program is paying high commissions, the customer is going
to lose in the end and if you referred him, guess what? You are
not the good guy but the bad guy who helped gouge him.
Let’s face it. We walk a fine line. How do you win? You focus on
the program that makes it a win/win/win for you, the customer
and the company.
The first thing to do when signing up for an affiliate program
is to find out what is the closing ratio. Naturally this will
depend on the type of leads you send to the company, but it
should have a general idea. Once you have that information,
calculate what each lead is worth, then make your decision.
Also, if you are willing to send a substantial amount of
business their way, find out what other benefits you may receive
as an affiliate. A good idea is to submit a news release or
article for publication in their ezine and trade links
periodically. Publicity for both companies leads to more
revenue. Keep in mind, it should be a partnership if you are
going to heavily promote their business.
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