A lot of business owners have heard of affiliate programs but don’t really know why they should start one. Well, there are a lot of reasons and in this article I will show you why you should start your own affiliate program.

What Is An Affiliate Marketing Program

Affiliate marketing is a very popular business on the internet that involves a partnership between a merchant and one or more affiliates. The affiliate will
advertise or promote the merchant’s products and services free until a customer makes a purchase.

How Much Does It Cost

Once a purchase has been made, a portion of the profit received by the merchant from the customer will be given to the affiliate. For this very reason, the relationship between the affiliate and the merchant is also known as revenue sharing partnership.

Affiliate marketing has also been recognized as the best way for merchants to sell more products on the internet as well as webmasters or affiliates to gain income with their own website. This is where the affiliate can make really good money.

So Why Not Just Pay For Advertising

To place a payed ad you need to invest your hard earned money up front. Before the ad is even placed the money is gone. Besides that you are not sure if the right traffic will be send to your website. You can get loads of traffic but if you get traffic that aren’t interested in your products or services it is a wast of money because your visitors will never buy your products or services.

I always compare payed advertising with throwing a hand full of boiled spaghetti into a wall and hope that a few strings will stick to it.

This is the same as old fashioned advertising. you place an ad and you hope you will get a sale from that effort.

When you start your own affiliate program you don’t need to invest money up front (except to setup your affiliate program one time).

The conversion of payed advertising diverse per niche but word stream suggest an average 2% to 5% paid search click-through rate and then of course you have to convert these visitors.

Depending on how well your affiliates promote your service the click through rate varies. But the difference between paid advertising and running an affiliate program is that with paid advertising you pay per visitor, which are not yet customers. When you use an affiliate program you pay for the actual sales.

So if you use paid advertising, you might get a 100.000 visitors in a month which you have paid for but that doesn’t mean they will be guaranteed customers. Now if you would get a 100.000 visitors through affiliate marketing and they didn’t became a customer then it wouldn’t have cost you anything. (If this is the case by the way I would suggest looking at your website why it isn’t converting 😉

So where would you like to invest your marketing budget. In advertisement that cost you money up front and doesn’t give you the guarantee it will bring you sales? or are you going to make a one time investment setting up your affiliate program and instead of spending time worrying if your prospects will buy, you can spend your time on training your affiliates, optimizing your website and building your business?

What Affiliate Program Software Should I Use?

Self Hosted Affiliate Software

Personally I use IdevAffiliate.
This software is easily installed in minutes and supports all the most used shopping cart software. Click here for the list of shopping carts supported.

I love this software because you can customize the complete software if you want to. This software is also mobile ready. Ideal for the person who wants to be in control because you host the software yourself. Great support and affordable. Click here for more info about IdevAffiliate

Hosted Affiliate Software

If you like to just implement the affiliate program software and leave the management and updates to somebody else you can consider using Amember.

This hosted affiliate program software is perfect to use for a membership site and create an affiliate marketing program.

So if you as a business owner want to increase your profits then starting an affiliate program might just be right for you. Think carefully about how you want to setup your affiliate program. Are you going to host the affiliate software yourself like IDevAffiliate or are you going to pay a third party like Amember a monthly fee so you don’t need to update and do the maintenance yourself? Of course there are a lot of other things to consider, but this is just the basics and I hope I helped you figure out why you should start an affiliate program.

At MyNams you find a fantastic FREE affiliate training.

If you find this article helpful please share it and now it’s your turn. Why do you think an online entrepreneur should start their own affiliate program. Perhaps you can recommend other affiliate program software. Please leave a comment below!