If you have never thought about using an affiliate program to sell your products, you might want to consider it. There are thousands of people on the internet that want to be able to tap into the online sales game but do not have a product to sell.
If you allow them to sell your product, you can have an unlimited amount of sales people marketing your product on a commission only basis. The easiest way to set it up is to use one of the affiliate marketing sites like ClickBank or Commission Junction.
There are several programs around, so you will have to do a little bit of research to find one that is appropriate for your product. For instance, ClickBank specialises in digital products. If you are selling an e-book or a downloadable software program, this might be the program to use. Commission Junction specialises more in tangible products.
For a small fee, usually a percentage of the sale, these programs will do all of the work for you. They will list the site in their searchable database where people interested in selling online can find you. If they are interested in what you are selling they sign up and become an affiliate for your product or service.
They are then assigned an affiliate code. When someone goes to your site using a link containing that code and makes a purchase, that affiliate gets the credit for the sale. The affiliate program tracks all of your sales, processes the transaction, and makes sure the correct sales person gets their commission.
There are pros and cons to using an affiliate program to sell your products. On the plus side, you have a motivated sales force that actively markets your product on the internet. They do the work, and take on all the expense of getting your message out to your customers.
With a sales force of a hundred or even a thousand people, it does not take very long to reach a very wide range of potential customers. Even if people do not click the link to go to your site, it still helps increase your brand recognition.
On the negative side, while it does not cost you much in terms of out of pocket expenses, there is significant cost involved. In order to convince someone to bear all of the expenses of marketing your product, there has to be ample compensation for them.
Commission rates of 50 percent of the sale price are not uncommon for digital products. The rates for tangible items are lower, but they are still high enough to make it worth your affiliate marketers time and effort.
The high commission rates will significantly lower the amount of profit you make on each sale. You can make up for this decreased profit with increased volume, but you have to keep a close eye on your costs to make sure you do not lose money on the transaction.