Affiliate Marketing

							Title:
Affiliate Marketing

Word Count:
482

Summary:
Companies going through stagnate pe
riods of growth or looking to hit t
he ground running should look at de
veloping an affiliate network. Not
 only will it greatly increase sale
s, but it could increase them rapid
ly and with a little effort could l
ead to long term business partnersh
ips.


Keywords:
Affiliate, Affiliate network, Russe
ll Brunson, Stu McLaren, Increasing
 Sales, Affiliate Marketing, Active
 Affiliates, Marketing, Increasing
Page Rank, Sales, Total Sales, Incr
easing Sales


Article Body:
Affiliate marketing can greatly inc
rease sales figures with only a lit
tle increase in the quality and qua
ntity of affiliate partnerships. T
he advantage of using affiliates is
 that it increases the leverage in
the marketplace.

Imagine getting people out there se
lling your product all day for free
, and they don’t make a penny until
 they start selling stuff for you.
 It’s great writing checks because
each dollar you write to an affilia
te, you are getting two dollars bac
k into your own pocket.

Someone once said in response to a
question on increasing page ranks i
n search engine searches that eight
 simple words that has been incredi
bly important, ‘I rely on my own ne
twork of affiliates’.

Affiliate manager, Stu McLaren, sai
d the advantage of increasing affil
iate numbers was clear, but it was
important to have active affiliates
 that continue to promote the produ
ct each months rather than in a one
 off attempt. Understanding how aff
iliates increases sales can be easi
ly seen in a formula.
Fig. 1
Total Sales = Product or service pr
ice * the number of active affiliat
es * number of monthly sales per af
filiate.

Increasing any part of the above fo
rmula will increase sales; however
increasing the product’s price will
 have a decreasing effect on the ot
her two variables in the formula.
Not all people that pay $30 for a p
roduct of service will be as willin
g to pay $40. However increasing t
he number of affiliates, or sales t
hey make will have an exponential i
ncrease on the bottom line.

Fig. 2
Original sales:
Total Sales $10,000 = Product price
 ($100) * affiliate numbers (10) *
monthly sales per affiliate (10)
Increasing affiliates:
TS $15,000 = Product price ($100) *
 affiliate numbers (15) * monthly s
ales per affiliate (10)
Increasing affiliates and monthly sa
les:
TS $22,500 = Product price ($100) *
 affiliate numbers (15) * Monthly s
ales per affiliate (15)

What this example shows is that it
doesn’t take huge increases in the
number of affiliate or units sold t
o have a substantial increase in th
e bottom line.

It is important that the affiliates
 are active, and they worked each m
onth to get the product out to the
marketplace. The role of an affili
ate manager is to ensure that affil
iate numbers increased and there ar
e a high number of active affiliates.

It is just now coming to peoples’ m
ind that such a small increase can
have such a huge impact. Businesse
s are now looking for affiliate man
agers and if you look at the employ
ment lists, affiliate managers are
being sort after.

There is a very small amount of aff
iliates that would be classed as ac
tive affiliates. I would say on th
e average affiliate list about 2.5
to 5 per cent would be active. The
 role of the affiliate manager is t
o increase the number of active aff
iliates and train them to sell the
product.

It is in the best interest of the m
anager to train affiliates because
they were more likely to remain act
ive and draw more affiliates into t
he system if they increased their o
wn individual sales figures.