How to choose an affiliate program?

Back when time was something I took for granted and little affiliate sites were a hobby, I remember thinking “How the hell do you just pick out something to do?”. Now I remember how I went about selecting them, even sometimes completely ignoring all the below points and just taking a big risk and failing hideously.  If you’re new to the game and you’re looking for a few things to consider then check out my pointers below…(if you’re not new to the game, I’d imagine by now you take them all into account anyway!)

1. Is the product which you are trying to sell something you believe will sell?

In other words, do you believe in this product and is it something you yourself or perhaps a family friend can imagine buying. If not, then walk away. You have to believe in what you are selling or believe that if you needed it, that it’s something you’d at least consider.

2. Do you have any knowledge / interest in the product?

Having a bit of knowledge about your product is probably the biggest advantage you’ll have. If you have no interest or no knowledge about mortgages then it’s probably not going to be wise to tackle a market which is already saturated with content and advice. What value are you going to add?

knowledge + interest = good Content

3. Budget Vs Market Size
   

Back to the ‘mortgages’ example, are you starting a fresh website and entering a swarm of other sites? If so, then make sure you have a big enough budget or you have something to offer that nobody else has (for example a unique mortgage calculating tool). Otherwise, try narrow it down by picking out a niche market or perhaps a niche sub market of ‘Mortgages’, example …’50+ Mortgages’. Even having a big budget means nothing unless you can make a return on your investment.

Low budget = Niche Market

High Budget = Niche or Competitive Market

4. How are you marketing your website?

PPC,Email, Social, SEO, Spam, Offline..etc.This, in my opinion, completely and utterly decides on the affiliate program you pick. Looking back at point 3, tackling a saturated and competitive market via PPC/SEO isn’t going to be cheap, are you ready to commit? Are you confident with your PPC/SEO skills, do you have tracking in place? etc. Many factors are involved here but to put it simply:

If your budget is tight, your website offers noting unique/different to everyone else then stay away from fiercely competitive markets. Chances are, you’ll come out with an upside down smile.

5. ROI: Research the ‘this is shit’ and the ‘Las vegas here we come’ potential before you start.

Professional meaning, worst scenario vs best scenario. Let’s have an example (PPC strategy):

Worst Scenario

budget = £500 – Conversion = 0.5% – CPA =£5 – Average CPC= £0.16p

(((budget / CPC) * Conversion) * CPA) – budget = Profit

So…

(((500 / 0.16) * 0.005) * 5) – 500 = -£421.87.

Best Scenario

Same figures but with conversion of 5% (a standard % you should always try and hit)

(((500 / 0.16) * 0.05) * 5) – 500 = £281.25

Ok so that best scenario is still not an excellent return of 56%, but the above is handy as a basic rule of thumb. I have excluded all startup costs from the above so please do take them into account. Along with any hosting fees you are paying.


6. Is the merchant up to date with payments?

Most large Affiliate networks now share with you whether or not the merchant is up to date, a bit slow or not the best with making payments to affiliates. So this is definitely worth double checking before signing up. Last thing you want is 3 months worth of PPC spend and no payment yet. That = Angry girlfriend.

7. EDIT: New entry- Promotional Tools?

Check to see if the affiliate program has enough promotional material for you to choose from. Banners, scripts, shopping widgets….etc.
—–

So that’s it. Points 3 and 4 are basically the same but look hard enough and you may see a difference. Perhaps.

Got anything to add? Fire away!