Part of our buisness plan is to generate revenue via affiliate marketing.
Can anyone point me in the right direction of a system to manage this ?
Also are there any accepted assumptions about take up. Obviously there are a wide range of factors in this however we need to project something in advance
Right now we have 12 products highlighted via email to are users every month which we have multiplied by the number of members to give a number of views metric we've assumed that only 4.5% of people who view will click through and only 5% of them will go on to make the purchase.
Any views on if this is too low/high wrong way to calculate.
Needless to say this is not my area
All answers much appreciated
Hi Mark, recommend you do a web search on Gartner Magic Quadrant for Multichannel Campaign Management. You can usually download the full, detailed report by completing a contact form submission on one of the named vendors.
While everyone has a favorite, I'm most familiar with Salesforce Marketing Cloud. You can build Customer Journey Maps, which send automated follow-up emails at pre-defined intervals (e.g. Day 1, Day 5, Day 10, etc.) or based on real-time events (e.g. conversion action), and leverage built-in analytics to track performance over time. In this way, you can do A/B testing on different assumptions - which will help answer your question "too low/too high" with empirical evidence.
Would be curious, how are you finding your "members" to build the distribution community?
Find your niche, find your groove and be prepared to work hard.
First, it’s that sense of the need to build a customer base over a period, that means many affiliate marketers expect too much too soon. The greatest risk to your program is that you haven’t done enough preparation when it comes to engaging with your audience. It is not a case of simply posting computer code from the retailer into your own mail and hoping the money will start rolling in.
In the first instance, it will take some time for you to find the right data for your emails. The first product you choose to promote will not necessarily be a successful one that you should stick with. At least it is free to sign up to most of these programs, so you can do a certain amount of experimentation in the early stages. You might apply to use a dozen affiliate programs, even some involving popular brand names, only to discover how little income is being generated. It’s all about researching, testing and fine-tuning your promotional skills.
Create High-Value, Unique Content
When it comes to any aspect of the Internet, content is crucial, but this is especially the case when it comes to affiliate marketing. If you don’t publish engaging messages, then you will simply not attract viable customers. Remember, it’s not just a case of posting links. What you are promoting on mail or website must be part of a holistic experience. This approach means that whatever product or service you are promoting must be envisioned in terms of the benefit to your readers. Ideally, you want to nurture the impression you are an expert on your topic; certainly not some random salesperson. Your content must be continually revised and updated to give the impression of a dynamic operation.
In broad terms your number for CTR is way too high but your end calculation is probably more realistic (0.2% conversion). The standard click-through and conversion rates do vary by the industry or type of product, and certainly based on the appeal of the offering itself. But I know nothing about the current behavior of your customers today with email you send them.
If you haven't started yet and don't have any historical data on email, you're really pinning a lot of hope on a terribly inefficient revenue model. I'd also ask at this point what your cost per conversion is. And if you don't know that you can make money from your sale after the cost to promote it, you're starting at another deficit.
There are some averages you can find on response rates to blind offers (meaning you don't have a trust relationship built with your audience). I would put most affiliate offers in that category. And you also need controls to make sure your affiliates aren't damaging your brand by using unapproved tactics to send UCE (unsolicited commercial email) or using redirects or misleading ads or other shady techniques to trick consumers.
The real answer is that your numbers aren't even an educated guess. And you won't know the numbers you can count on until you test with sample audiences. Don't trust any of the general statistics, even mine. Always test. You won't know until you try, which is unfortunate, but there are more than a hundred variables that could affect your conversion rate, and it will be your job to test each and every option (on a regular basis) to make sure you are getting top performance. This is no small task, so I hope that it's worth the effort to you because it's for an expensive or highly profitable product.