When you run your own Internet marketing business, your top priority needs to be maximizing your return on investment (ROI). The best way to do that is to motivate your sales force: Your affiliate marketing network.
And the best motivation ever created is money.
Creating Sales Incentives
A small investment that can bring huge results is to incentivize your sales force with bonus offers and other extras.
For example, assume you have 10 affiliate marketers in your network, each of whom bring in about $100 per week, or a total of $1,000, in sales for you . If you are paying 50% in commissions, then each marketer makes an average of $50/week in sales commissions.
Now, if you were to offer a $50 bonus each week to the marketer who had the highest sales, your average production per week per affiliate would likely go up as each affiliate marketer competed for the $50 bonus.
It would not be unreasonable for this type of incentive to increase the average weekly sales per affiliate to $125/week, or a total of $1,250. So for your relative small $50 investment – which is only 10% of your weekly profits — you gained $250, or additional ROI of $200, or 40%.
That’s like paying $1 to make $4, a winning formula every time!
Cash Is King
Cash bonuses are a powerful incentive. But you can also structure your commission rates so that they are tiered.
With this type of structure, affiliate marketers with lower sales receive a standard commission. But as they achieve pre-defined volume levels their commissions can increase. Again, this results in stronger sales for you with no additional work on your part.
For example, you offer to pay newbie affiliates a 20% commission. But if they sell more than $1,000 per week, you offer to increase their commission to 40%. This is going to make most of your affiliates work harder to sell more than $1,000 worth of your products so they can earn that extra cash.
Checking Up on Your Affiliates
As an Internet marketer, your reputation is your livelihood. But because you need to depend on affiliate marketers to serve as your sales force, you are at their mercy as to how the reach their sales objectives.
If they are dishonest or deceitful, or they treat their customers rudely or insensitively, it reflects on you as well as them. After all, it’s your products they are selling.
It’s important, therefore, to continually monitor the way your affiliate marketing network interacts with your end user customers. Sometimes it’s helpful to pose as a potential buyer to view firsthand how the interaction is handled. If you aren’t satisfied with the experience, you shouldn’t expect your customers to be either.
Getting Rid of Poor Affiliates
The great thing about using affiliate marketers as your sales force is that there are always others waiting in the wings to replace those you currently use. You can dump affiliates at the slightest hint of impropriety.
If you have to dump an affiliate, don’t sweat it: You can be in business and be friendly, but you can’t always be in business and be friends.