Understanding the Mindset of Affiliates – By Joris Toonders

by FeedFront Staff on April 12, 2010

Affiliates like to compare the performance of several advertisers to be sure they’re monetizing their traffic the best way. It’s easy for them to do so by looking at the advertiser’s EPC (Earnings Per Click).

Here is an example of how to calculate EPC:

  • An affiliate refers 10,000 visitors to a Web site that sells clothes.
  • These visitors purchase $8000.00 in products.
  • The affiliate receives a percentage of this revenue, so if it’s 10%, they will earn $800.00 in commission.
  • $800.00 divided by 10,000 visitors = $.08 EPC.

As an advertiser, you can influence EPC using these important strategies:

Your affiliate commission is important

Think about the commission you can pay to your affiliates. While it is important to mind your margins, it is equally important to remember that affiliates take the full risk. The higher the commission you can pay, the more volume you’ll generate via this channel.

Start your affiliate program with a fixed CPC

Many affiliates with niche Web sites are promoting several competitors within one site. When you’re kicking off your affiliate program, it’s necessary to make it very attractive to them in order for the affiliate to give your program a chance. Since your program is new to them and they are unaware of your EPC, one way to minimize their risk is by giving them a fixed CPC in the first month.

Share important information with affiliates

When you give your sales people more information, it’s easier for them to sell your products and services. That’s also the case when you work with affiliates.

Tell them which products are doing well, new product launches on the horizon, PR efforts you have going on, average order value, and how they’re performing against other affiliates. The more information you can provide to affiliates, the more you can get them to generate leads and sales for your business.

Work on conversion optimization, everyday

Your conversion rates can influence the EPC greatly. When your conversion rates double, the EPC of your program can multiply, too. Use analytics tools to measure the way people are using your Web site. Be sure to run split tests and multivariate tests daily and inform affiliates about the conversion developments. The higher your EPC is, the happier your affiliates will be and the likelihood of them sending you more traffic will be greater.

Joris Toonders is the founder of Yonego B.V., and ROI driven Internet Marketing company which generates millions in revenue for its clients.

Download the entire FeedFront issue 10 here – http://www.scribd.com/doc/29057000/FeedFront-Magazine-Issue-10
FeedFront issue 10 articles can be found here as well: http://feedfront.com/archives/article00date/2010/04

Leave a Comment