Affiliate marketing is a very popular marketing tool people use to promote their product on the internet and can be a great way to promote your digital goods at practically no cost. The way affiliate Marketing works is that people otherwise, called publishers,are recruited by you to put an advertisement for your product on their website or social media profile that has a purchase code other called an HTML cookie attached to your product. Specifically, when someone clicks on the advertisement and purchases your digital product the sale is traced back to the affiliate and you and the affiliate split the revenue from the sale. Many people ask us how they can effectively build an affiliate network to reward people with a commission who sell their product. In this tutorial we will describe exactly how to effectively build an affiliate network and sell your products by rewarding people to promote them online.
In order to build an affiliate marketing network, you first need to sign up for an affiliate program. We have partnered with Clix Galore, which we feel provides a really good affiliate tracking service and is also free to join (note: you must give a $70 deposit which you get back once you finish using their program). After you have signed up, it is now vital that you recruit people to start promoting your digital goods. There are two main types of demographics you can recruit into your affiliate marketing campaign. The first type are individuals who are connected to your social media profiles and product niche. Whether they are fans of your digital goods on Facebook, follow your company on twitter, or even personal contacts on Facebook, this demographic makes a great group to recruit to your affiliate network. These type of promotions can include links to your website on a person’s facebook page, a tweet with your url on twitter, or even a blog post with an affiliate link back to your website. It is best to recruit people who are connected to your product niche such as fans of your Facebook page as they will in a likelihood have friends or connection who share their interest in your product niche.
The second group of publishers we advise you to recruit are people who have website that is related to your product niche and have them promote your digital goods with an advertisement on their site. For example, if you sell eBooks you could approach someone who has an eBook review site or if you sell extreme sports videos you could approach a website publisher who runs an extreme sports related website. What’s so great about this type of marketing is that you only pay people who advertise for you a part of your revenue, making this marketing strategy risk-free.
Now that we know how to successfully develop an affiliate marketing campaign it is important to discuss how you decide what percentage of your revenue you split with your affiliates. Ultimately the decision of how you share your revenue with your publishers is up to you. However, with that being said, we recommend that you do a 75/25 or 70/30 split with your publishers, in order to stay competitive with other people who use affiliate marketing strategies to sell digital downloads. In other words, you should give you publishers 25 to 30% of your profit from every sale that they refer. The reason you should give your publishers such as high commission is that the cost to develop digital goods is very low cost and high margin business. Therefore publishers need to be incentivized with a generous commission rate to feel like you are treating them fairly. Thus, as we can see running a affiliate marketing campaign can be a great low-cost, low-risk way to promote your digital goods.