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In abouth a month I will be setting up a new website that sells 1 product for $75 aimed at a global market (us/europe).
At the moment i'm preparing everthing and i'm investigating the use of affiliate marketing. I have a few questions about this matter:
- I'm from Belgium (Europe), so i use Euro's: is it best to sell my product in $ or in €?
- Which affiliate system should i use?
- How is payment of my affiliates done? Do i have to make a deposit to each of my affiliates every month or is this an automatic process?
- How about the exchange rate from $ -> € and back: should I open an american bank account?
If someone could answere these questions I would be very happy ;)
I've been working as both and affiliate and and affiliate program administrator for some time, so I'll try to answer your questions:
I'm from Belgium (Europe), so i use Euro's: is it best to sell my product in $ or in €?
Always go with US$ if possible. Virtually all affiliate programs and payment processors use this currency, as since this is a new program you want to make it very easy for affiliates to transition into.
As an alternative, why not offer payment in both? The only problem is the exchange rate...but it would be useful. If not, always go with US$.
Which affiliate system should i use?
That really depends on the product that you are selling. There are several software packages out there that will do it for you, or you can go through a company like Amazon and have them do all the work for you. It really depends on how much hands-on work you want to do.
Send me a private message and I'll be happy to talk to you about various software/services for this.
How is payment of my affiliates done? Do i have to make a deposit to each of my affiliates every month or is this an automatic process?
Generally speaking, most affiliate programs automate their payment process. Think about this - if you are doing manual payments and you have 10,000 affiliates to pay, then that could take you an entire month just for one pay period. Whereas you can build a script which will automate payments and do all the work for you in about 5 minutes. Must more efficient.
Most affiliates these days want either check/direct deposit or payment through a 3rd party (such as Paypal - as they can withdraw the funds directly into their bank accounts through Paypal instead).
How about the exchange rate from $ -> € and back: should I open an american bank account?
The exchange rate shouldn't be a huge issue. Just run all currencies in USD and you won't have to worry about it. You don't need an american bank account for this, most banks will allow you to open an account in any major currency. So you should be able to go the one of the big banks in Belgium and ask to open a business checking account in USD instead of Euros.
This way, the only exchange rate that you'll have to deal with is how you pay your suppliers/widthdraw money for yourself.
I'm not sure if that will answer all your questions because it sounds like this is your first real online business and there's alot of issues involved. If you have any questions, feel free to PM me :)