Pay-per-click affiliates can be a big boost to the bottom line. This arrangement can bring you increased sales, often to the tune of 10 times the amount of traffic you’re currently getting, and boost your conversion rates by a factor of 2 to 3 X. Expert affiliates use PPC to drive highly-qualified traffic to your product or service landing pages, generating increased sales and higher conversion rates.
However, if you want to increase your online revenue by leveraging the power of pay-per-click affiliates, make sure to consider the whole picture, including the drawbacks to this approach.
Affiliates demand high commissions. When affiliates decide to promote your product or service, they’re the ones who invest in the cost of advertising up front. Naturally, they expect to be compensated at a higher rate than what merchants are accustomed to paying in traditional retail channels. In affiliate marketing, typical commission rates can range anywhere from 25% to 90%, depending on the volume and conversion rate of your product.
Here are a few basic dos and don’ts to keep in mind:
Dos: The so-called Hook Model works by initially offering a limited version of a product, performing just a sample task of its full functionality, and then prompting the buyer to purchase it in order to get the full version. The hook is highly effective online and is a legitimate marketing strategy that showcases the power of the product without sacrificing the sale (something that is not the case with 30 to 60 day trials).
Products such as cures for damaged PC registries and computers infected with harmful spyware tend to perform well. Other successful products are media conversion and transfer programs that allow the user to convert videos and music to different formats.
Don’ts: Things that don’t work well with PPC affiliates are 30 to 60 day trials that prolong the buying process and increase risk of consumer drop-off, as well as products that don’t have instant appeal to the customer.
As a general rule, the online consumer is looking for quick-fix, instant-gratification products that meet a specific need. If your product or service doesn’t fit that bill, it is unlikely it will sell online. Software products that provide a quick solution to a specific problem and offers that present a direct benefit tend to work very well.