Hey everyone,

I have decided to start my own affiliate system over on ForumShock. It is not live yet (but I am accepting sign ups), as I would like to nail down some good advice before I proceed to make it public. Now, the questions is, how do I attract affiliates?

I know, good pay, quick payouts. However, the profit margins are not exactly great, and I have decided on this payout structure...it is what best suits my business and the current profit margins.

• Level 1: 5%
• Level 2: 10%
• Level 3: 15%
• Level 4: 20%

With that current structure, affiliates can make up to $45.00 per sale. I think that is decent, correct?

I am considering starting a race...where the first affiliate to reach 100 sales will get a $250.00 bonus ($100.00 for 2nd, $50.00 for 3rd) on top of what they get from their own generated commissions.

However, how do I get enough affiliates to sign up to begin with? I want to wait until I have at least 25-30 affiliates so that it is an even and fair race. Is that number to optimistic?

What attracts you the most to a private affiliate system? What is an effect "call to action" message? What makes affiliates happy? Do sign up bonuses really matter? Do affiliates really look at that?

Some help would be great, thanks ahead of time.
Bryan

Dont think you will have much success cuase that market is oversaturated. Forum posting services were big 4 motnh ago but now seem kinda old.

Originally Posted by Worldwebuser

Dont think you will have much success cuase that market is oversaturated. Forum posting services were big 4 motnh ago but now seem kinda old.

Oversaturated...true. But fortunately, I firmly believe I am the leader in the industry. I have made the move to an affiliate system because I feel that it will work.

I would not have done it had I not thought it was a good expansion.

Your post has nothing to do with my thread though. I am not asking whether I should do it, I am asking how I can attract them, regardless if I've done it or not.

What has worked well for me are many of the things you described above along with giving a nice deposit to start their account off with. A broad selection of banners and text ads for them to choose from and good testimonials from those doing well in the system. What software did you decide to go with? Hope it goes very well for you

Thanks John.

Because of some other feedback I've received, I've now lowered it down to a 3 tier system, starting at 10%, 15%, and 20%.

I have also decided to include a $10.00 deposit, but will be increasing the cash payout to $50.00 (since I have now increased both the percentages for the tiers, and also the deposit).

I also decided to go with Idevaffiliate.

Is this a step in the right direction?

Sounds like a good plan Bryan...the tier system is a good incentive and your percentages seem very liberal. IDev is the software I use and many of the big players use it as well...I think you'll be very pleased with it. Once you are going with it, give me a shout...I may have to sign up

My affiliate management work has been limited to the adult web but I can say that my top producers have always been people that I worked with on a personal level and provide exclusive content/creatives too while affording extra liberties and an higher payout. Since your a one man crew this might not be the worst way to go, however, it can get pretty crazy ifyou bring too many people in on this level. Just 2 cents.

Absolutely agree on making the tire system a main focus, when you have webmasters promote you, the word will get out quickly. Pay affiliates on time, provide good banners, do whatever you can to make it worth their while, webmasters will share hot new programs and do a lot of the work for you.

I have gotten mixed reviews on the tier system. Much of the feedback is that "because the profit margins are low, I should just provide one constant level".

What do you guys think?

The system is good as I think it's motivating!
Best of luck.

Originally Posted by Bryan Le

I have gotten mixed reviews on the tier system. Much of the feedback is that "because the profit margins are low, I should just provide one constant level".

What do you guys think?

Well, there should be some incentive for webmasters to recommend you. So if you don't offer a tier system, make sure you do whatever else you can to get affiliates to talk about you.

Bryan,

I think there are many good advices in this thread, but I thought I would cut in with something that has worked for me. Except from giving people some money in their account from start, I usually also give the affiliates commision for every new approved affiliate they refer to the system.

Can that be something for you?

//Andreas

Originally Posted by Andreas Bard

Bryan,

I think there are many good advices in this thread, but I thought I would cut in with something that has worked for me. Except from giving people some money in their account from start, I usually also give the affiliates commision for every new approved affiliate they refer to the system.

Can that be something for you?

//Andreas

That sounds like a great idea. Is there a way that I can cut down on the chances of fraud though?

Maybe a 30 day hold to see if the affiliate becomes active? Or when then affiliate makes their first sale, the referring affiliate gets the commission then?

Bryan

Originally Posted by Bryan Le

Thanks John.

Because of some other feedback I've received, I've now lowered it down to a 3 tier system, starting at 10%, 15%, and 20%.

I have also decided to include a $10.00 deposit, but will be increasing the cash payout to $50.00 (since I have now increased both the percentages for the tiers, and also the deposit).

I also decided to go with Idevaffiliate.

Is this a step in the right direction?

Shouldn't that have been applied to all previous accounts too?

Originally Posted by Bryan Le

That sounds like a great idea. Is there a way that I can cut down on the chances of fraud though?

Maybe a 30 day hold to see if the affiliate becomes active? Or when then affiliate makes their first sale, the referring affiliate gets the commission then?

Bryan

Yes, you should set up som rules for it like they get paid after the new affiliates first sale or something like that. But before they even get in to the system you need to check theire site and info out and approve them. it should drop the fraud rate quite a bit.

//Andreas

I'm ready to sign up when it's ready Bryan.

I'm active on so many forums (1k+ posts each) I should be able to get you some conversions with just a link in my sig and a mention here and there.