How to build an affiliate scheme....

[SQK Accountancy]

Hello to everyone,

I am a newbie to affiliate marketing but I am looking at running an affiliate scheme rather than working as affiliate.

I am a UK based accountant who is looking to expand my business substantially in the next couple of years. I am thinking of operating an affiliate scheme. I currently have 2 methods I am thinking of working with:

Model 1:
An affiliate finds a lead, my team then prices it up and the affiliate gets the client on board and then receives 20% of the commission for the lifetime of the client (This is normally £1,000 to £2,500 per year for several years).

My questions on this model are:

- Would you think affiliates would be interested in this offer?
- How would you recommend that I build the scheme so that the affiliate knows they will be paid for the lifetime of the client?

Model 2:
I simply pay per lead deliver which my own team then closes.

My questions for this are:
- How would I best protect myself from fake leads?
-Would around £30 to £40 seem fair to affiliates?

If anybody has any thoughts please let me know and I am more than happy to offer some UK accountancy advice by way of return.

Kind regards,
Chris

 

[T J Tutor]

Pay Per Lead!

 

[Offerit-John]

You can do it in several ways.

1. PPL - Pay Per Lead
2. PPS - Pay Per Sale
3. Rev Share

I work extensively with affiliate programs worldwide and they use these primary methods. You could offer affiliates the option to do all of the above, therefore leaving the decision of how they'd like to earn up to them.

But first, you need to find the numbers that match up with your revenue so you know you are still profitable. I've seen companies offer $100 PPS and the churn rate on the client leaves them losing money, and therefore out of business quickly.

Do you know your Churn Rate or CPA? These would be helpful in determining what price points to use for any of these 3 options.