What You Need to Know to Start an Affiliate Program

Setting up an affiliate program can feel a little overwhelming. There is so much information about affiliate networks, it can be difficult to appreciate what is crucial and what you don’t need right now. So, here we’ll explore what you need to know to start an affiliate program.

 

Your Program Goals:

Like any marketing program, you need to know your goals before you start your affiliate program. So, you should think about the types of customers you want to bring in and which types of affiliates will be able to help you. 

You will also need to consider measurable goals to help you determine if your program is successful. While sales are important, there are other metrics that could be helpful to measure success. 

 

What Your Competitors Are Doing:

You may have already done a general analysis of how you compare to your competitors, but you also need to be aware of what your competitors are doing with their affiliate programs. 

Before you design your own affiliate program, it is a good idea to perform an analysis of available affiliate programs. Try to look at at least two competitors that have affiliate programs and look at the program structure.

Don’t forget to perform a SWOT analysis, so you can identify any opportunities your competitors may have missed. 

 

Your Affiliate Commission Structure:

The key to managing affiliate program budgets is to determine the right commission structure. You’ll need paid placements to increase the visibility of your brand and products, but you’ll still need to decide how you will pay your affiliates. 

You’ll need to think about whether you will pay a percentage of each sale or a set amount, and the exact commission you will offer your affiliates. Bear in mind that you want to be competitive with rival affiliate programs, but take care of your company’s financial needs. 

 

Your Overall Program Structure:

Once you have thought about your commission, you will also need to consider other aspects of your program structure. This includes how your affiliates will distribute affiliate links, how long the affiliate cookies will remain active, and what other terms and conditions you’ll include. 

You will also need to think about if you will hire an affiliate management agency for your program. 

 

Where You Will Find Affiliates:

You will also need to give some thought to where you will find affiliates for your program, also known as affiliate recruiting. This could be through using existing affiliate networks or by creating your own network. 

You will need to recruit and train affiliates, briefing them on the program and ensuring they sign an agreement to abide by your rules.

 

How You Will Track Your Affiliate Program:

Finally, you need to know how you will track your program. Successful program operators understand which affiliates bring in the most sales, and monitor whether the program is meeting measurable goals periodically. 

Tracking your affiliate program allows you to check your conversion rates, AOV, and sales, making any necessary tweaks to ensure success.

 

As you can see, setting up an affiliate program does take some work and you will need to keep an eye on your progress. So, it is important to boost your knowledge before you start, so you can get off on the right foot.