No affiliate manager

Many companies launch an affiliate program with the anticipation that it requires some heavy lifting early on, but then runs itself thereafter. The truth is that having a person dedicated to the day-to-day operations of the affiliate program is a necessity. And this person should be easy to reach with customer service questions. If there is no name attached to the program, as well as some level of customer service, your program is doomed from the start. Your affiliate manager should be highly visible and accessible, and when the affiliates do reach the affiliate manager, they had better get a quick response. It’s not acceptable to have a single employee dedicate part of his or her time to the management of a program. CRM (Customer Relationship Management) is essential, and the affiliate programs that realize this are the perennial top performers.

No answers to frequently asked questions

Even though you have a FAQ (frequently asked questions) for your site, that’s not enough if you are going to operate an affiliate program. Your main FAQ may cover your company and site thoroughly, but there are a wide variety of questions that are specific to your affiliate program: Does it cost anything to join? How can I sign up? How do I create a link to your site? When will I get paid?

If you don’t know what people are going to ask, try a handful of friends and employees to navigate through your program and write down two or three questions. Answer these questions and you’ve got a FAQ. As your program grows, you will receive questions from your prospective affiliates—whenever you answer a new question, be sure that the question and answer are added to the FAQ. And make it a practice to send the FAQ (highlighting any updates) to your affiliates once or twice each year. Answer those questions before affiliates have a chance to ask them—now that’s efficiency!

No privacy statement

Do affiliates join your mailing list when they sign up for your program? Do you intend to sell or share your database of affiliates with other companies? If so, it is recommended that you share this information with your affiliates. If you decide not to divulge this information, you could seriously harm your credibility. If you do not currently have a privacy policy, you can refer to the privacy policies of some other companies to get an idea about the general components, but you should have a lawyer draft your actual privacy policy to ensure that it is done legally and correctly.

No Agreement

How often will you be paying your affiliates? Can non-U.S. residents participate in your program? How much will you pay? Is there any reason why your affiliates would forfeit their commission? Although these documents may seem like unnecessary bureaucracy, they are absolutely essential. Spell out your terms in your affiliate agreement and not only will you gain more credibility, but you will also avoid potential legal disputes. The affiliate agreement is the document that dictates affiliate rights and protections, and it must be posted prominently on your site for all prospective and current affiliates to read.

No investment in the affiliates

Don’t set up an associate program unless you are willing to share a reasonable percentage of profits with your associates. Low commissions can be a huge stumbling block for your program, but how much is enough? This is a tricky question with many variables. Will you be paying a flat fee on each transaction, a percentage of the sale, or for each click?

In some categories with low margins and high prices, it is reasonable to pay out a low percentage. But in many segments, it is unacceptable to offer less than 5% of the gross sale. Flat fees and pay-per-click models are totally dependent on the product and cost. To determine the best commission for your program, research your competitors and try to give a little more than they are giving to the affiliates. Of course, the bottom line is a key factor, and you’re not going to give up your entire margin for the sake of the affiliate program, but if you are offering a paltry commission, you will not have any affiliates.

No marketing support

Amazingly, many affiliate programs have little or no marketing support. This is counterintuitive considering it is in the merchant’s interest to help the affiliate succeed. Make sure you offer your affiliates training, not only in how to sell your product or service but also in how to make their Web site a success. Show your affiliates how to drive more traffic and convert at a higher rate. Also, don’t forget to educate your affiliates on the basics of marketing, because they are not basics for many of them. Update your marketing materials regularly to reflect new tips and techniques. Keep your offers creative and your copy fresh and timely—stale affiliate tools beget a stale affiliate program.

No community support

It is in your interest to foster support for your affiliates, yet many affiliate programs offer no community support. There are a number of easy-to-implement community features that can instantly make your program more robust, friendly, and useful. Set up an e-mail discussion list for the exchange of ideas and peer consultation. Provide a Webring to members of your affiliate program so they can drive traffic to one another’s sites and learn from the marketing techniques applied at other affiliate sites.

Host a chat for your affiliates once or twice a month—this provides them with the chance to have real-time interaction with you and their peers, which is a great opportunity for you to utilize them as a focus group for upcoming plans. Community is important to an affiliate program, as it generates loyalty among the affiliates and provides the affiliate manager with an avenue to provide meaningful, personalized interaction with the affiliates.

No way to find your affiliate program

Believe it or not, there are quite a few companies that operate affiliate programs, and they do not link to the program from their home page, or any other page for that matter. People must be able to find your program if you want them to join you in marketing your product or service. Although the affiliate program directories will generate some traffic, you cannot expect to operate a successful program if you rely solely on this method.

Not only should you display a prominent link on your home page, but it is also a good idea to incorporate a blurb in your e-mail signature about your affiliate program. If you have a newsletter, plug the program. When you send out an invoice, plug the program as well. And don’t forget the footer! It has become a common convention to link to your affiliate program information page from the footer on all pages of your site. It all comes back to the KISS method—keep it simple, stupid! If you build it and hide it, they will not come.

No statistical reporting

Do your affiliates have a means to track their statistics online? As a result of the robust statistical reporting from the affiliate solution providers, affiliates not only want online statistics, they demand them. They are going to expect this feature and if you do not provide it, your competitor probably does. Don’t risk losing affiliates. If you utilize a third-party affiliate solution or an off-the-shelf affiliate software, the online reporting should be a given. At a minimum, you should provide your affiliates with a breakdown of the pay periods, sales, returns, and total balance—preferably in real time.

No online application

Just as with the online reporting, you should also be provided an online application if you are using a third-party affiliate solution or affiliate software. If you choose to create your online application in-house, note that some potential affiliates will be sensitive about the transmission of their personal information. Bear this in mind, because if you do not have a secure server for transmission of their personal information, you could be turning away a lot of potential salespeople. Your affiliate program must reach a minimum level of sophistication, and if it fails to do so, you are going to turn away a lot of prospective affiliates. Asking for a potential affiliate to send an e-mail as her affiliate application is not considered an online application and is strictly verboten.