Turning non-affiliates into affiliates

How do I turn their free click into dollars?

[jdancing]

I am starting an affiliate site in a market niche where about half of the widget makers featured have websites but do not offer affiliate programs. I included these non-affiliate sites because there are not enough affiliates in my niche to fill out my site's theme as envisioned.

At some point, when click through rates to my widget-makers take off and I am showing up in their logs on a daily basis, I want to approach those that are getting free rides about starting an affiliate program… or better yet, form a one-on-one relationship where I am their sole affiliate partner. I would prefer to stay away from pay for inclusion to my site.

My question to the group is what is the best strategy to go about convincing a merchant that I am sending business to join an affiliate program? Or how could I start a one-on-one relationship where sales from me could be tracked? Many of the widget makers seem to be somewhat challenged when it comes to web-marketing their product and would look at me with a wary eye.

Also, most are mom and pop shops that wouldn’t be able to join the CJs or BeFrees of the world and would balk at buying complicated/expensive affiliate software. What other options would they have? What options do I have? I want to turn their free clicks into dollars at some point down the road.

john

[Hunter]

Hey John great quesion. I know there are a few people around here that can help you much better than I with this subject so maybe a bump to the top again will help. One idea off the top of my head would be setting up your own pay per click campaign (on your site)...

[jdancing]

I never really envisioned my site as offering PPC. But perhaps it could be a secondary option that I could offer to those that refuse the affiliate route.

I’ll look into how to set one up. I imagine there are services and scripts available out there to do it...

[watercrazed]

I think you have framed the issues well. In your situation, and I span most of the possible arrangements, (do a little of everything - probably none of them well ;-) ) A couple of products I wholesale, I have a few drop shipped to my customers, a couple I am an affiliate and some I inventory and direct retail only, I also have physical locations. With mom and pop, retailer/manufacturers, you will have a very hard time setting up a reliable affiliate program. The setup effort on the part of the manufacturer is not minor, it would have to become a significant part of their marketing plan. If they have any marketing plan they are ahead of the pack let alone a on line affiliate program market plan on the radar screen, that your activity would trigger. Drop shipping is something that is much more easily implemented. Lot of issues there too but a manufacturer can implement with little or no effort. May be a good first step if you are looking for more of a return then pay per click. Most small manufacturers are very resistant to online advertising, due to a lack of background necessary (or don’t have the time) to evaluate the value of the thousands of offers they receive. Also note that Small time pay per clicks are developing a bad reputation due to click fraud. Most small business sites can not track conversion rates and a surprising number can’t/don’t track referrers. I recently changed hosts, that has Live stats, and now I may be in that category with out the time to adequate configure the reporting system.

I guess I am in a verbose mood, drop shipping: Manufacturer/retailer – implementation – no real change necessary, some changes to protect the referrer can be implemented. M/R – risks almost none, mainly price cutting, product misrepresentation. Marketer generally has a larger collection risk, product return risk, and service quality can be an issue. Complications on your side, you have to accept payments, merchant account or pay pal. You have to set up a system to forward orders and handle shipping, product complaints.

Well past time for bed, maybe this should have been a sticky mail but you all can advise me for future posts.

[jdancing]

I have been reading the "Finding Good Affiliate Niches" thread and think I may have found one. I was becoming a bit discouraged with my affiliate market selection and I didn't realize I might be onto a good thing until reading the thread.

In the thread DOGBOY displays a copy of his "Branded Affiliate Agreement" and I thought it might be something I could use. But still, even if I could get some of the widget makers (widgets = information in this case) to sign such and agreement, how do I track their sales. They still need to install the affiliate software or join some type of affiliate service like CJ...no?

[Smiley]

My question to the group is what is the best strategy to go about convincing a merchant that I am sending business to join an affiliate program?

First build a mass of targeted traffic that converts – merchants will want it no matter the type of marketing relationship.

Don’t only think affiliate programs for revenue. With small merchants I’m a fan of very simple deals as many don’t understand CPM, CPC, affiliate schemes and so on. They do understand an increase in their business that you may be able to demonstrate is due to your work. Sometimes a simple fee per month is better.

Is there a good reason that there are limited affiliate programs for your type of widget (low profit margin?). If you niche is really so good why encourage them to join CJ and open it up to 1000’s of other affiliates?

[jdancing]

Is there a good reason that there are limited affiliate programs for your type of widget (low profit margin?).

The profit margin definately is high but yearly revenues are fairly low for most... $5-10K per year on average I would guess.

If your niche is really so good why encourage them to join CJ and open it up to 1000’s of other affiliates?

The main reason is there needs to be a way to track sales generated from the clicks from my site.

[Smiley]

If you think an affiliate scheme is the only option then I have two ideas (but I have no personal experience of either)

1) Set up a private scheme on one the networks – works out a bit cheaper
2) Run your own affiliate scheme using a piece of affiliate software, or, design your own, you may just need a tracking URL and piece of code on the merchants “receipt page”

Smiley :)

[jdancing]

1) Set up a private scheme on one the networks – works out a bit cheaper
2) Run your own affiliate scheme using a piece of affiliate software, or, design your own, you may just need a tracking URL and piece of code on the merchants “receipt page”

That's what I'm talking about! Can anyone give me more insight and experience with either of these two options?

[Smiley]

Hopefully you'll get some replies from more experienced members!

Smiley

[edited by: rcjordan at 2:09 pm (utc) on Mar. 21, 2003]

[jdancing]

There must be a way to track sales on my end. However, I can't see how it could be done if I send visitors off to their site and order forms. Unless I start my own mini-affiliate tracking company?

Perhaps this is something that is a business opportunity – a 3rd party affiliate tracking service for the small mom and pop operations.

Otherwise, it seems I would need to host a mini-version of their sales page and use my own order form, then notify them of orders needing fulfillment.