How to Get Thousands of Marketers Who Will Work for (Almost) Free
When I’m doing business consulting sessions with the hundreds of business owners I work with, they understand that sales has always been the driving force of most businesses. However many small business owners do not currently have the resources to hire a dedicated sales staff, so they find themselves wearing all of the business owner hats, production hats, and sales hats. Phew! That’s a lot of hats. When I’m working with these business owners, one of the things that I coach around is creating an affiliate program where they can have thousands of people market their products and services online completely for free.
This can eliminate the immediate need to hire a dedicated sales staff — although hiring a dedicated sales force is still a worthwhile decision down the line.
HOW THIS WORKS
Simply link your product or service to one of the many affiliate banks out there. Get affiliates (other bloggers, website owners, designers etc.) to sign up for this program. Then you shell out a small commission to each person via an affiliate tracking link that the company gives you when you sign up to be an advertiser. Boom.
It’s that simple.
Instead of sinking money into PPC campaigns with no actual sales conversion, your advertising dollars are well spent by simply having to share a bit of your company profit margin with a willing and able affilate, with zero upfront advertising cost to you.
For some of you, in order to maintain profit margins this might mean a pricing increase or adjustment of pricing for your services. That’s okay. Let me tell you that those can be a good thing.
From the dawn of our advertising until now, consumers are often driven by the price going up. No one wants to pay more for something tomorrow when they could have paid less for it yesterday. So before launching an affiliate program with any of our clients, we sit down and look at profit margins and make sure the commission rate that we are offering the affiliate is attractive to the affiliate, but also doesn’t hurt the business bottom line. Then prior to the affiliate program launch, we do an email campaign to all current customers (and potential customers) on social media that prices will go up on a specified date. The day after the prices go up, the affiliate program is launched.
SOUNDS EASY RIGHT? IT IS, IF YOU ARE TECH SAVVY
The concept is a simple one, however in order to create an attractive affiliate program where you will immediately engage thousands of internet marketers who want to sell your product and service, there is a lot of back work that needs to be done. Not only must you create a pricing structure that works within the confines of an affiliate program that you’re going to implement, but you also need to set aside a separate budget to create collateral affiliate marketers can utilize successfully.
This collateral includes:
Graphics of multiple sizes
Short email campaigns (3 – 5 emails)
Social media posting suggestions
A dedicated affiliate collateral page that has all of this information, updated regularly for the affiliates to utilize in order to help make your campaign a smashing success.
Cost vs. Value
The average cost to start up an affiliate program that includes all of these elements for a business owner will be anywhere between $600 to $1,600. This investment does not include whatever deposit the affiliate banks require prior to setting up the affiliate program as well. These fees range anywhere from $49.95 – $600 up front. However an initial investment of $2,300 is far less expensive than the time and resources it would take to hire a dedicated salesperson or sales team on a daily (or even part time) basis, even if that salesperson or sales team was working on a commission only basis, there still has to be extensive training involved.
Conversely, with an affiliate program, all you have to do is create collateral the people who already have a following that will likely be interested in your product or service will respond to, and you let them take it from there.
If you attract even a hundred affiliate marketers, all of whom have approximately 1,000 followers each, you have instantly increased the reach of your advertising to over 10,000 people every month. When considering that bloggers receive new subscribers on an almost daily basis, the increase for your ad to be shown (especially if it is effective) only goes up from there, without your costs increasing in any way shape or form.
Heck, a one-time investment of $2,300 in this manner of marketing is even cheaper than hiring us (or any other marketing or digital media company) for an entire year. And, what’s even better is we are the ONLY marketing and media company who knows how to set this up (because we are the only ones who have done it) in the greater San Antonio area — and even Texas.
LET’S DO A LITTLE MATH
If out of ten thousand people, you convert 10% — which is the average– you have successfully made 1,000 sales. If your product or service averages $40, and the average commission you pay out is 25% to affiliates, here is how that breaks down for you mathematically:
$40 x 1,000 = $40,000 – 25% (commission) = $30,000 in sales – $2,300 to set up = $27,700 in previously before unrealized gain to you.
Essentially, you not only make back the investment you made to set up the affiliate program in 30 – 60 days, but you have made a healthy profit, boost in sales and customer base to which you can now marketing new products and services to as well.
In short, it’s only good for your bottom line.
Affiliate programs are a fantastic way for you to begin boosting your earnings easily by simply providing quality collateral do already established bloggers. If you are interested about learning more on setting up affiliate programs for your business, please contact us or leave a comment below. Of course follow us across all of our social media networks for up-to-date relevant information on this and other hot button social media and blogging topics. Because here it Valkyrie consulting we are all about teaching you how to monetize your marketing.
Of course, if you’d like to bypass all of this and try working it yourself, we’ve got you covered there as well. Click the button to receive our Monetization Guide for a paltry $5. Why $5? Because we want everyone to have the opportunity to be successful. That’s why.
Make sure to leave us a comment below and share this with your networks…in case someone you know is serious about changing their lives.