1. Glossary
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Term |
Description |
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Affiliate Program (AP) |
An affiliate/associate program is a cost-effective way to promote products/services/ideas or information by means of sharing profits with promoters (affiliates). |
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AP Organizer |
A person or organization that implements an AP |
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Affiliate |
A participant in an AP whom the Organizer pays for promotions. |
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Affiliate's ID |
The unique identifier of an affiliate |
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Reference ID |
ID of the old affiliate who referred a new affiliate to the AP |
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Sales/leads generated by an affiliate |
Sales/leads to customers referenced by the affiliate |
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Sub affiliate (1st level sub affiliate) |
An affiliate who joins the AP on the reference/recommendation of an accepted affiliate |
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nth level sub affiliate |
A sub affiliate of an (n-1)th level sub affiliate |
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1st level sub net of an affiliate |
All sub affiliates of the affiliate |
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nth level sub net of an affiliate |
All mth level sub affiliates of the affiliate, m=1,...n |
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Refers/recommends to an AP
Affiliate 2 (ID2)
FIG.1
Affiliate 1 with ID=ID1 recommends a new person to the AP. This person becomes the new affiliate with ID=ID2. In this case, Affiliate 2 is a sub affiliate of affiliate 1. ID1 is the reference ID for Affiliate 2.
2. Quick Overview of an Affiliate Program (AP) Business Cycle
You create an AP not for yourself but for the affiliates; therefore you should know what they want. To do this you should:
Design a questionnaire
Have affiliates fill out questionnaire
Collect answers
Analyze the responses
Determine the needs
The next step should be to design the AP. The main steps of this stage are:
Analyze the needs
Make decisions about the type of AP
Type of reference (advertisement, for example click; registration of user-lead; sale)
Type of payment (fixed amount of money or % of sale)
Reward scale (number of levels, amount on each level)
Implementation issues
(periodicity of payments, minimal limit, unit of payment,etc.)
There are many ways to announce your AP, including these:
Registration in AP directories
Presentations
Publish in the press
Publish on the Net
Messages distribution
These are the every day’s tasks for managing the AP:
Register affiliates
Register orders/sales/leads
Generate reports
Reward affiliates
Register payments
Communicate with the affiliates
Analyze trends and performance
Make decisions
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Copyright © 2002 AdvMathAppl
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