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Affililate Marketing FAQ

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Questions

How much does it cost to get started?

How does Affiliate Marketing work?

How long will it take to see a positive Return On Investment?

Who are Profit Rank’s clients?

What is the bottom line?

How much revenue can I expect the first year?

How do I get started?

How do I know if Affiliate Marketing is right for my company?

What about Affiliate Networks?

How much effort is needed by my staff?

What are the benefits of working with Profit Rank?

Do Affiliates perform Search Marketing?

How does Profit Rank compare to the Affiliate Networks management services?

What if I have a paid search program already?

What if I have an affiliate program now?

Answers

How much does it cost to get started?

Initial setup and network fees are just under $5k. Rates do vary quite significantly based on the affiliate network you choose. You will also need an affiliate commission escrow deposit that can vary from $50-$3000 depending on the network. Banner ads will need to be created but we find most merchants have the in house creative staff well suited and familiar with this simple task. If not Profit Rank will help. That’s it.


How does Affiliate Marketing work?

Affiliates are marketers who work on a commission or bounty basis. It is estimated that there are over one million affiliate marketers and they range in size from a single individual to companies of several hundred. Affiliate Marketers build websites to attract communities of consumers. These communities are typically vertical or topic specific in nature and consist of chat rooms, blogs, and informational (content rich) websites. The affiliates attract thousands of interested users who are offered products in sync with their interests.

Affiliates display your ads to their website visitors in hopes that the visitor will purchase a product. Affiliate identification links are embedded in the destination URL to track and report the sales on your website back to the affiliate responsible for sending you the buyers. The affiliate networks track the sales and manage the payment/bounty that is paid to each affiliate.

Affiliates also email their “opt in” website visitors so they can profitably prospect for your company via email. As you may have experienced cold email prospecting does not work well for merchants especially in the business to consumer market place. But the affiliate is a trusted source and they take all the risk.

Affiliates are quite often experts at paid/sponsored search engine marketing. Even when a merchant is unable to profitably market in a paid search channel affiliates will succeed. AND once more assume all risks.


How long will it take to see a positive Return On Investment?

Not counting the initial setup fees positive return on your investment starts with the first sale. Most merchants will achieve overall profitability including the setup costs within 2-3 months of the Affiliate Network startup launch date.


Who are Profit Rank’s clients?

Our best clients are those that have multiple products, profit margins of 40%+, and either don’t have an affiliate program or have not been satisfied with their existing affiliate and/or search marketing programs. Clients who sell discounted items, coupons, or continuity programs also work very well in the Affiliate marketing channel.


What is the bottom line?

For less than $8k a merchant can get into the affiliate marketing game and start to see positive return on their investment in less than two months. The decision to do affiliate marketing and have Profit Rank manage the process for you is really simple.


How much revenue can I expect the first year?

Average first year affiliate sales can easily exceed 10% of your existing Internet sales and will grow year after depending on affiliate restrictions.


How do I get started?

First step is to contact Profit Rank to set up a conference call so we can better understand your business model and to assure your company and Profit Rank will make money. Win! Win!


How do I know if Affiliate Marketing is right for my company?

Affiliate Marketing will work for your company if you have a fairly broad target audience market for your product. Profit margins should be 30%-50% unless you are in a low margin bertical such as consumer electronics and average sale should be over $30. If you meet these requirements Affiliate Marketing may be right for your business.


What about Affiliate Networks?

The top affiliate networks ProfitRank works with are Commission Junction, Link Share, and the Google Affiliate Network. These networks are best for general offers or fr merchants who have lots of product SKU's. Shareasale is a good choice if you are not prepared to invest heavily into the affiliate channel until you are sure that affiliate marketing is right for your offer. Our affiliate managers have gained the trust and built personal relationships with many top affiliate publishers.

There are several affiliate networks that specialize in product or lead generation verticals such as health, insurance, business opportunity seekers, finance and dating. Website Magazine published a list of the top 50 in the May 2009 issue.


How much effort is needed by my staff?

When you outsource your affiliate marketing program it shouldn't take more than 1-4 hours per month from your marketing team. It is usual practice to have weekly phone calls with your affiliate marketing manager however most correspondence is performed via email or instant messaging.


What are the benefits of working with Profit Rank?

  • No hiring of personnel and associated costs (benefits, office space, PC, sick days, vacations....
  • Experienced Affiliate Marketers with proven client success and personal relationships with top performing affiliate marketers.
  • ffiliate Network approved vendor - Linkshare, Commission Junction, Google Affiliate Network (alias Performics), Shareasale, plus many secondary niche affiliate networks.
  • Established monthly reporting features.
  • Affiliate Marketing focused creative and copy writing.
  • No hidden costs.
  • Most Affiliate Marketing campaigns become self funded within 3-4 months.
  • New customers acquired at a profit.
  • Increased Revenue with little risk – average first year sales exceed 5%-10% of total online revenue.
  • Incentive based programs for a "Win! Win!" partnership.

Do Affiliates perform Search Marketing?

Many affiliates are experts at Organic and Paid search. Often we find that merchants are unsuccessful with paid search due to lack of experience or the high cost/competitiveness of their targeted keywords. Affiliates manage search campaigns every day, all day. They know which keywords work and which ones they can afford to buy. Best of all affiliates take all the risk out of Paid Search Marketing as they only get paid when they sell your product.


How does Profit Rank compare to the Affiliate Networks management services?

The major networks manage for a flat fee. Profit Rank’s expert product marketers work on a strict performance basis. We only make money when we sell your products. We spend all our time creating affiliate relationships and thinking how we can sell more of your products/services. We act as your affiliate marketing team and share in the revenue generated.


What if I have a paid search program already?

You may elect not to permit affiliates to perform paid search or prevent affiliate marketers from bidding on specific terms and/or your branded keywords. Profit Rank can for a fee police paid search engines and take appropriate action when violations occur. Affiliates often find those niche and long tail keywords missed by even expert paid search marketers who may be more focused on the obvious keywords. In the affiliate channel you are in control. ProfitRank will work with you to set keyword and paid search policies.


What if I have an affiliate program now?

Profit Rank affiliate marketing management experts will analyze your existing affiliate campaign to determine current effectiveness, sales, and profit potential. Our affiliate marketing experts will then make a list of recommendations for your approval.

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