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Remember...
Total Affiliate Sales = Product Price
times # Active Affiliates
times Avg Monthly Sales per Affiliate
It is often conservative,
especially if you currently have under 20 active affiliates, to estimate a
40% increase in the number of active affiliates
As just mentioned, the
affiliate manager will be actively recruiting, and paying particular attention
into recruiting super affiliates (those with huge mailing lists or large visitor
numbers (lists and visitors specifically targeted to your product).
Our Affiliate Management Formula calculator (below) applies this
simple formula to see
what it can mean with your specific program, but in most cases, the money spent
on hiring an affiliate manager full time is more than compensated for by the
additional revenue brought in.
What does this mean in terms of your bottom line?
Well, for example, let us assume you have a $97 product. While you
have 200 affiliates signed up to sell your product, say only 20 are actively
promoting it. The average number of sales each month attributed to affiliate
sales is 100, so the average per active affiliate is 5. That works out to
gross annual affiliate sales of $116,400
With the assumptions above, with affiliate management actively
seeking new affiliates, and keeping them active, this scenario can change to 28
active affiliates, still making an average of 5 sales each a month, and the
gross annual affiliate sales becomes $162,960,
or an increase of approximately
$46,560 just by recruiting
8 more active
affiliates!
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