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Remember...
Total Affiliate Sales = Product Price
times # Active Affiliates
times Avg Monthly Sales per Affiliate
It is extremely conservative to estimate a
20% increase
in the number of active affiliates, each of who can make
20% more sales each month
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). Above
this, most affiliate managers actively train the affiliate marketers in your
program, allowing them to increase the success rate of their campaign.
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 22
active affiliates, but now making an average of 6 sales each per month, and the
gross annual affiliate sales becomes $167,616,
or an increase of approximately
$51,216 just by recruiting
4 more active
affiliates and motivating each active affiliate to make just 1 more sale per
month!
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