Affiliate Marketing Tip – How to Choose Good Affiliate Programs to Diversify Your Risks
One of the best attractions to venture into affiliate marketing is that there is little or no risk involved such as advertising costs, product development expenses and inventory overheads. However as your business grows this may add up and if you have joined a good number of affiliate networks and programs, it may be time to think about how you should diversity your risks.
I would say you only have one primary risk to worry about. If and when a merchant goes out of business, your business goes down with him too. So how do you minimize this risk?
Diversify your risks
Most of us don’t really have the time or know how to analyze an affiliate company or know how good its financials are. If you are representing a good number of affiliate programs, these are some of the things that are important to consider:
1. focus on small group of quality programs that are excellent and complement each other
2. your affiliates can link directly to the individual affiliate marketing products instead of just the home page
3. good payment mode like pay per sale or pay per lead
4. don’t choose merchants that belong only to popular networks only like Commission Junction.
5. good affiliate support e.g. email notification when a sale takes place or availability of traffic building tools or top quality marketing material.
6. Lifetime cookie – receive commission even when the prospect you referred to decides to make a purchase only three months later.
7. Leverage on professionals who have already compiled comprehensive lists of merchants with affiliate programs and review them when you are signing up new affiliate marketing programs and networks.