Myth: Affiliate Programs with the Highest Commissions Are Best

Have you ever been lured by the promise of big commission percentages? Some people offer 80% or even 100% — how can you beat that?

Of course, if we sit and think about it, there’s more to it than just percentages. Before you decide on a product to promote, consider:

The dollar amount per sale. Percentages mean nothing because products have different prices. 100% on a $10 product is less per sale than 50% on a $30 product.

Look at conversion rates. Not all product offers are created equal and you need to evaluate your overall earnings with a program before you declare a winner.

For example, if that $10 product with the 100% commission converted 1 sale for every 40 visitors (a 2.5% conversion rate), while the $40 product with the 50% commission converted 1 sale for every 100 visitors (a 1% conversion rate) which offer would be the best to promote?

Well, let’s do the math. Yeah, I know…I hate math too, but sometimes you gotta.

In this example, the $10 product would earn us $12.50 for every 100 visitors and the $40 product would earn us $20 for every 100 visitors. If things remained constant, the $40 product would be the one to promote.

You might also consider the opportunities for recurring commissions (if available) as opposed to one time commissions. Sometimes what appears most profitable on the surface isn’t the reality at all.

Affiliate Marketing Q&A - Kelly Asks Me The Qs

If you didn’t already know, Kelly McCausey is gearing up for her big Moms Affiliate Expo coming in September.

It’s going to be an informational event for affiliate marketers that also helps affiliates find great products to promote. It’s completely online, so no need to get out of your pajamas (unless you want to) to be a part of this one.

Yes, It’s In September, but What’s Happening Now?

Whether you’re an affiliate or product seller, there’s stuff going on now that you’ll want to check out. There’s plenty of learning and promotion opportunities already started.

For Affiliate Managers (whether you’re a mom or not): If you’re looking for more affiliates for your program, here’s the perfect opportunity. Attendees of the Expo will be the cream of the crop, well-educated affiliates…just the kind you want on your team. The Expo is accepting exhibitors for the expo and the title comes with some great perks and a discount if you order before August 1. The details are right here.

For Affiliates: Get on the mailing list now because, as I understand it, Kelly is releasing a series of informative audios to help you with your affiliate marketing before the event even starts. The actual event schedule is posted here (that’s for September), but to the right you’ll see a newsletter to sign up for. Get yourself on that list, so you can start receiving updates and interviews before the event.

The First Interview Recording is with Yours Truly

Kelly just interviewed me yesterday and LOL, she called me “a powerful Internet Marketing mom”. Mwah hahahaha…I feel drunk with power.
But seriously, she asked some good questions including:

What first attracted you to affiliate marketing and how did you get started?

Did you find it difficult to find products to promote?

Have you ever found a program that looked really promising but that ended up being a flop for you?

What red flags have you learned to look for over the years?

Do you ever contact affiliate managers with special requests?

How do you feel about big affiliate sites like CJ.com and LinkShare?

Many new affiliate marketing moms are just getting started with a blog. What next steps would you recommend to them to amp up their efforts?

If you’d like to listen to this interview, make sure you’re on that mailing list. Just go to the event schedule page and sign up for that in the top right-hand corner. Kelly will be sending the audio link out to the list this week.

Three Thoughts: It’s GOOD to Send Your Readers to Competitors

In a recent discussion with a Email Marketing Reform School student (she’s also joining me for IM Copy Makeover) that I really enjoy working with (she listens, applies and keeps moving forward - good student!), she told me:

“As this isn’t IM I can’t really send offers other than for my own stuff. I don’t want to send them to competitors.”

I was kind of surprised, but not completely taken aback as a lot of people who have their own products think this way. Here’s what I told her:

Your readers are going to buy from all kinds of companies, competitors, etc..whether you like it or not. Why not get paid for it? Wise advice I first heard from John Reese.

It’s a great market research tool to figure out which products you might be able to develop yourself. If you offer other products that your readers readily buy, that’s powerful information.

Always remember, the Internet is so vast. You have so many people on your list that will never buy from you that it’s not like sending your brick and mortar customer to the store next door.

In fact, if you lead them to quality products from other companies, they will trust and appreciate your opinion and come back for more. Overall, there are so many ways to maximize our online income and convert more prospects to sales…even if it’s not always for our own products.

I must admit, in this market of selling to online business owners, I make fewer and fewer affiliate offers - but there’s a very good reason for that. I have more of my own products to offer, so I am able to fill more of my prospects’ and customers’ needs. However, I haven’t stopped and will never stop making affiliate offers…because I just can’t be everything to my target prospect.

MYTH: Affiliates for U.S. Companies Must Complete W-9

Every year, just before tax time, the U.S.-based affiliate programs that I work with frantically email me to let me know that I need to fill out a W-9 Request for Taxpayer Identification Number and Certification (PDF).

Each time, I let them know that I am not a U.S. taxpayer and that form doesn’t apply to me. I also say that I should likely be completing the W-8BEN Certificate of Foreign Status of Beneficial Owner for United States Tax Witholding (PDF).

Then they tell me that they’ll get back to me. I wait and then they email saying that I should complete the form. Then, after all that back and forth, I fill out the form and all is well.

But please, U.S. affiliate program owners, do your foreign affiliates a favor:

- Sort your affiliates to U.S. and non-U.S before emailing them and provide them the correct form.

- Or at the very least, please send out two forms to all your affiliates and tell them which one to complete.

I know I’m just Canadian (hee hee) and I’m asking a lot, but it’ll save a bit of time and we can all get our paperwork done.

For Non-US affiliates to save youself some time:

- Open the W-8BEN (PDF) on your computer.

- You can fill in most of your details and save the form to your computer, so you can use it over and over again.

- The only thing you can’t fill in on the computer is the date, your signature and your title. That you have to do in writing. You’ll also have to edit the date each time you send it out.

Tough Question Tuesday - “Clear Your Cookies”

I know this is usually the type of thing that applies to the Internet Marketing to Internet Marketers Crowd, but since you are probably the recipient of these tactics now and then, I thought I’d ask a question brought up on a forum yesterday.

Here’s what the original poster wrote:

There’s a number of big launches going on. Big launches = big commissions.

This is not a hypothetical question - I’ve seen it done - see below. It’s not something I personally would do. But I’m interested in the opinions of this community.

Would you send an email to your list asking them to clear their cookies and sign up for a launch, so you (and not a former-cookied affiliate/JV) would get the commission?

Certainly people are savvy enough to do it (for bonus reasons, or preferred marketer, whatever), but …

Would you *ask* them to do it?

I posted my opinions on that thread and they’re summed as this:

I think it becomes unethical when the affiliate program is set up to be a first-in type of thing. In other words, Joe Marketer created an affiliate program and for whatever reason, he decided the rule is the first person to refer gets the sale. In that case, you are stealing sales.

Of course, most programs seem to operate on a last-referrer policy. And in those cases, it’s not actually necessary to tell anyone to clear anything. If they click your link before ordering, you’ll get credit. In campaigns where I was offering bonuses, I was very careful about insisting the people click my link to order, but I never saw the need to ask them to clear their cookies.

So, in my mind it’s either unethical OR unnecessary, depending on the situation.

And then someone said that it becomes problematic when bonuses are offered and people want to order through your link, but are already cookied elsewhere, so I wrote:

Yes, it does happen, so if you’re part of a launch you should ask/insist the person running the program has a last-in referral policy. Then nobody has to resort to used car salesman tactics.

What do you think? And don’t let my opinionated self sway your opinion. Obviously, there’s more than one way of looking at a situation.

Pay-Per-Lead Affiliate Programs That Don’t Suck

Stealing the wording from Nicole Dean, it’s really tough to find good pay-per-lead programs. Sure, you can earn $4 by giving away a free laptop or get $20 for a life insurance lead, but have you ever been on the other side of this process?

The free laptop (or Burberry bag or what have you) survey is a series of hoops (pages and pages of questions and the requirement to sign up for more offers) your readers have to go through…and most of them will probably be annoyed by the time they get to the prize. Unless, your readers signed up to take surveys for free stuff, you might wanna stay clear.

Is the high pressure and reselling of contact information that comes with the higher payouts of life insurance, etc…really worth it?

I’d like to be so bold as to suggest, that mine & Mila’s Moms Talk Network Affiliate Program is one pay-per-lead program that doesn’t suck. Basically, our affiliates refer others to sign up for one of our mailing lists or free guides. In return for each sign up they refer, the affiliate receives 25 cents. Sure, the payout is lower…but the conversions are generally higher AND you can feel good about the follow up your readers will receive.

Do you know of any PPL affiliate programs that DON’T suck?

Staff Review: Affiliate Classroom

Here’s a new staff review of Anik Singal’s Affiliate Classroom. This staff member was interested in honing her affiliate marketing skills and want to take a sneak peek on what was inside, so it was a perfect product for her to review. The site has recently been updated and upgraded and here’s what she had to say:

—– START STAFF REVIEW —-

Who’s it for: Beginner to intermediate marketers. It’s NOT for anyone who has been building successful affiliate sites.

What’s Included:
Special deals/discounts
Forums
Blog
Keyword Estimator
Cloacked Link Coder
AC Magazine Archives
Training System
Expert Interviews
Case Studies
Tutorials

More Details:

Everything is nicely organized with the areas very easily accessible. You know exactly where to go when you log-in. The main attraction to this membership is the step-by-step program they have in place. For beginners, it won’t be overwhelming. They basically hold your hand through the whole process of building a new affiliate site.

They start you with what they call an SBS (Step-by-Step) Training. You enter a name for this project. It takes you to Step #1 – Research Niche Products. You have a guide and tutorials to review. Then you create an Affiliate Program Profile. Once you complete your assignments, you go on to Step #2.

This is the hand-holding you’ll get throughout the program. It’s also why it’s not for advanced marketers and those who have found success already. I believe it would be a little too ‘simple’.

I do believe it’s a great program for someone who wants a plan of what to do and how to do it. There isn’t any guesswork here. The forum is also a great way to connect with other affiliate marketers to bounce ideas off of.

—– END STAFF REVIEW —-

Sound like if you’re at the beginning of your Affiliate marketing journey and you really like to have everything laid out for you - at a more reasonable price than hiring a full-on coach/mentor - this might be worth checking out. Joining Affiliate Classroom is simply a $1 investment for your trial period and then $29.95 per month after that.

Are You an Affiliate Marketing Beginner?

If so, here’s some great news for you. We’ve just put together a 17-page FREE guide with all the basics to get you started.

The guide covers:

- What affiliate marketing is
- The benefits of being an affiliate marketer
- How to start earning with affiliate programs
- Creating content
- Helpful tools and more

If you need a headstart, click here to download the guide.

If you are a seasoned marketer already and don’t need the guide, but know others who might…there’s an opportunity to brand the guide and get it out to your readers too.

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