06 Oct A Dozen Secrets to running your ecommerce business like Amazon: #5. Create an Affiliate Program
“Amazon Associates is one of the first online affiliate marketing programs and was launched in 1996…When website owners and bloggers who are Associates create links and customers click through those links and buy products from Amazon, they earn referral fees. It’s free to join and easy to use.” – Amazon Site
Amazon gets others to market and sell their products by paying them a commission. You need to do the same for your business. Invest in affiliates and JV (joint venture) partners to get them to market on your behalf!
Here is a quote from Jim Cockrum: “The companies who have the offers you are promoting sit back and love it because YOU are taking all of the risk to build their businesses!”
Affiliate programs (also known as reseller programs, associate programs, etc.) are an opportunity for you to get hundreds, even thousands of web sites all driving traffic to your site and making sales for you…
And the best part is you don’t pay until AFTER they make the sale!
Here’s the secret: the companies that are paying affiliates are the ones making money (not the affiliate who is getting paid)! This may seem counter-intuitive, but even today about 40% of Amazon’s revenues are derived from affiliates driving traffic to their site.
There are several ways you can run an affiliate program. You can use a third-party site like CJ.com, Clickbank, JVZoo, or Linkshare. Or you can manage it yourself with a plugin such as Affiliate Royale (https://www.affiliateroyale.com/WebStoresLtd/royale). However you decide to do it, you should have some sort of a referral program like Amazon does.