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Affiliate Program
Tracking Techniques
There are four basic
things which you should look for when buying software. It's
ability to track sales, it's compatibility with your shopping
cart system, the ability to track return visitors and the
ability to report real time sales statistics. It is possible to
set up an affiliate program tracking system in many ways. You
can set it up manually which requires nothing more than the time
it takes you to administer it and handle new affiliate sign ups.
However this method has many disadvantages which are discussed
below. Affiliate program software can cost anywhere between $300
and $12,000 and can be very effective in automating your program
and providing accurate statistics. Third party affiliate
networks are also an excellent option and can save you an
enormous amount of time and trouble because they handle
everything including recruitment and sign ups. Affiliate
networks add to your affiliate programs credibility especially
if your business is unknown, however they can end up taking a
sizeable chunk of your profits.
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Manual System
- You will have to manually set up individual pages for each
affiliate and insert each affiliate's unique id into each one.
For example if you have 20 affiliates then you will have to
create pages which look like this :www.yourcompany.com/af1.html,
www.yourcompany.com/af2.html... all the way to 20. You
will then have to insert each affiliate code into your
shopping carts' order button so that it appears as a field in
the order form. Every time you run the orders through a
spreadsheet you will be able to assign commissions to
individual affiliates just by looking at the affiliate id
field and matching it with the respective sales amount.
- This system has many drawbacks. First, you will have to
generate new pages for each new affiliate and e-mail each
affiliate their unique URL. If you need to make a price change
you will have to go back and change all of your affiliates'
pages which might take you forever. Furthermore you can only
sell one product. If you would like the affiliate to be able
to link to more pages you will have to set up mini web sites
for all your affiliates. On-line sales statistics and real
time sales reports are not feasible with the manual method.
Your affiliates have to rely on your commission reports and
this may make them paranoid.
- On the other hand all these pages can be indexed in search
engines ( unlike script generated pages which are discussed
next) and will not cost you anything at all. You can also
exercise better control over your affiliates because you will
responsible for signing them up one by one.
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CGI - JavaScript Programs
- This script automatically generates URL's for new associates
allowing for automatic sign-ups. Each affiliate is given a
pre-assigned number which is recorded whenever a visitor links
to a merchant site. Essentially the script puts the
affiliate's code in the URL as the visitor surfs through the
merchant site. If the visitor orders something the script
places the affiliate code in the order form and the affiliate
gets credit.
- This method has it's drawbacks too. If the visitor decides
to leave and returns later without book marking, the affiliate
will not receive credit. There is no way that the visitor will
remember the exact coded URL and therefore if they return to
your site by typing in your domain name directly the affiliate
will not receive credit. Furthermore if the visitor doesn't
like the look of the huge URL they may delete it on their
first visit thus eliminating any commissions from impulse
buys. Lastly it is not possible to index these affiliate URL's
with search engines and so the affiliates will have to rely
only on impulse sales which originate on their web sites.
- Scripts are mainly used because they eliminate manually
having to construct individual affiliate product pages and it
is possible for the affiliate to receive credit on anything
which is eligible for commission on the merchant site. It is
also possible to track commissions in real time using CGI and
Java Scripting.
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Cookies
- Cookies are amongst the most attractive ways used to track
affiliate programs. They are popular because they can track
visitors who leave merchant web sites but return later and
buy. Whenever a visitor links to the merchant site from an
affiliate site a cookie is placed on the visitors browser.
This cookie identifies the affiliate. When the visitor buys
something the software calls the cookie from the visitors'
browser and places it in the order form and the order can be
tracked. For example if the affiliate is assigned the
following URL :
www.yourcompany.com/?af909 then a cookie called af909 is
placed on the visitors browser and is placed in the order form
whenever it is called.
- Cookies are an excellent tool for tracking sales because of
their ability to track return visitors. It is possible to set
cookies for an indefinite time period so theoretically the
affiliate can receive lifetime commissions. However there are
problems. Some people have their cookies 'turned off' which
means that their browsers do not accept cookies. Some browsers
do not accept cookies altogether. Some users delete their
cookies on their hard drive to free up space or because
cookies get them paranoid about privacy and some operating
systems delete them automatically. Consequently about 20% of
all sales go untracked with this method and the affiliate
risks losing commissions even from the first referral.
- There is software which utilizes a combination of scripting
and cookie technologies. For example if the visitor goes to
the merchant site and their browser does not accept cookies
the CGI script immediately gets activated and tracks the sale.
Corey Rudl, owner of several successful online businesses and
author of a best selling marketing course has developed a
program which does this and it is reportedly quite effective.
It's called
AssocTrac and it's priced quite competitively; I think
it's worth checking out.
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Database Management
Basically I think that this is the easiest, most
cost-effective and most under-utilized method to track return
visitors. The basic idea is that once the visitor has
purchased through an affiliate link the affiliate id is stored
in a field along with the visitors name, address and other
personal information. This way, whenever the same customer
makes another purchase the affiliate id is retrieved from the
customer's profile and credit given to the appropriate
affiliate. It is irrelevant whether customers bookmark the
affiliate site or the merchant site, if they go directly to
the merchant site or through the affiliate site or if they
purchase again in five seconds or in ten years time. As long
as the affiliate id remains in the database together with the
rest of their personal information the affiliate will receive
credit for any subsequent sales.
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Third Party Network Tracking
- Third party networks are probably the best way to go if you
want to avoid the hassle of setting up and administering your
affiliate program. They provide top class tracking and
commission reporting and maintain a pool of thousands of
pre-qualified affiliate sites which can easily become your
affiliates as well. Some networks ask for a sizeable payment
up front and require a small commission every time a sale is
made while others require you to pay them a higher percentage
per sale but don't charge so much to set up your affiliate
program account. If you don't have the time to administer your
own program and don't mind the extra costs involved, it is
advisable to apply with one of these networks. Affiliates are
more likely to sign up with a program which belongs to a
network as they know they will get paid. Check out some of the
major third party networks
such as Commission Junction and Linkshare and compare them to
each other. Most of them offer excellent service to both the
affiliate and the merchant.
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Associate Program Tracking
Software
The following are a collection of selected software programs.
All of them, especially AssocTrac are highly recommended by
several affiliate internet marketing portals:
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AssocTrac (Internet Marketing Center)
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AffiliateZone.com
- Paul Galloway:
www.palis.com/yoap
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Features
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Groundbreak.com
- The
Affiliate Program Software
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Features
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AffiliateShop.com
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Features
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Replicator2000.com
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Features
You can also visit
CGI-Resources.com where you will find a collection of low
priced and free scripts which you can customize.
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Webmaster Articles |
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Affiliate Strategies |
What
is an affiliate program | How to pick a good program
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Affiliate
programs to avoid |
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Merchant Articles |
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How to attract affiliates |
Set up a successful program |
Tracking techniques |
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