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Industry, and Tips and Guides

6 Myths About Affiliate Marketing

Andrej Csizmadia

November 4, 2014
Last modified on June 20, 2022 at 1:59 pm

On the internet you can find a lot of affiliate marketing myths. These can often cause merchants to pass on these kinds of programs. It’s important you understand some of these myths so you can make the right decision for your business. Setting up a stable affiliate program can open a revenue avenue without much of the investment. This post busts the 6 most common myths about affiliate marketing.

1. Partners Rob Me Of My Profits

This is the most common view of merchants, why not start an affiliate program. This mistake is most common with merchants that have very brief knowledge in affiliate marketing or business. They have no idea what their cost per order is, how much is their marketing, profit from each order, etc. 
When paying commissions to partners, the amount is immediately visible and therefore the merchant has the feeling that his partners cut of his profits. PPC, SEO and other campaigns too, but it’s not so distinct. 

Calculate the cost per order – add up the cost of SEO, PPC, PR articles, search engine catalogues, banners, etc. The number that will come out is the exact same amount of commission you can offer your partners. If you set the amount of commission in this way, your partner won’t cut of your profits. An order over your partners will cost you the same amount of money as well as through any other advertising channel. The advantage is you do not have to pay anything, if the partners do not bring any sales.

2. Success In Affiliate Marketing Comes From Having Thousands Of Websites Promoting My Products

There are many small websites that will be promoting your products, but the key to success is finding a few partners who will drive results. For example, one online store has over 1,000 affiliates in its program, but 80 percent of the resulting revenue is generated by only about 30 affiliates. The goal is to find the right partners that will sell the most and treat them according way.

3. Affiliates Don’t Add Value

Affiliate marketing can be a powerful source of new sales and customers. According to Forrester Research U.S. affiliate marketing spending will reach $4.1 billion in 2014, up from $1.6 billion in 2007. This JebCommerce infographic illustrates numerous examples of the power of affiliate marketing.

Why affiliate marketing - JebCommerce infographic

4. Affiliates Are Your Sale Force

Affiliate marketing is a great marketing tool, but it’s not a cure for a bad service or product. Don’t forget that quality customer service is crucial to succeed. If you are not able to sell your products via various marketing channels, probably your affiliates won’t bring results, too.

5. Every Affiliate Is The Same

How can this be true? Every person is different and thus each affiliate is unique and has unique needs. They run their own businesses and projects. Treat them like a partner.

6. Starting An Affiliate Program Is Very Expensive

Fortunately not. Today, you can run your affiliate program for several dollars a month and within a few hours. A very useful software for this is Post Affiliate Pro which contains the right portion of necessary features that help your business and your partners succeed.

Affiliate marketing is a big opportunity. If you’d like to find out step by step how to set up an affiliate program from scratch subscribe below.

The top countries which use Post Affiliate Pro
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If you run an affiliate program, you might be worried about detecting fraud. But with a few checkpoints, you can eliminate or prevent a majority of it.

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Managing affiliate programs involves detecting fraud, recruiting partners, getting them active, keeping them motivated, and increasing their output. Fraud detection can be done through manual approvals, contacting partners, checking weekly reports, and running returns reports after 30, 60, and 90 days. To recruit partners, businesses can use emails, cold calls, tradeshows, blogger groups, and advertising. To activate affiliates, provide tips and onboarding processes. To keep them motivated, offer incentives and support, and increase their output through bonus campaigns and niche plans. Lastly, repeat the process with new partners and a hands-on approach.

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