A Guide to Affiliate Program Competitive Intelligence Research

When introducing an affiliate program to your marketing mix it is essential to treat it the same as your other channels (i.e. search, paid search, email, retargeting, etc.) because it is just as important, and in some cases the most important piece to a company’s marketing mix.  Why do I say that? Simple, I have seen many occasions where a company will just throw an affiliate program up on a network without doing any competitive research and they hope for the best. An affiliate program can be a very profitable avenue if set up and managed correctly. Conducting a comprehensive competitive intelligence review is vital and should be done when starting (it should also be done periodically once the program is live)a new affiliate program so that you are competitive and attract the desired affiliates. There are eight (8) main components to a competitive intelligence report and they include: competitor’s name, affiliate platform, CPA, incentives, cookie life, action locking period, ranking, and EPC. I will go over each component in detail to ensure you capture all the necessary information.

#1 – Competitor’s Name

This may seem pretty obvious, but you may discover that they operate under multiple names or have multiple affiliate programs, so getting their name and the URL’s they use for any and all affiliate programs.

#2 – Affiliate Platform

Once you gather the competitors name (s) the next step is to see what platforms or affiliate networks they currently run their affiliate programs on. They may run their program on a major network (CJ Affiliate, ShareASale, Rakuten LinkShare, etc.), but they may also run it on a private software (CAKE, Post Affiliate Pro, HasOffers). A major affiliate network may not be the best place for every merchant, so finding where your competition operates helps in making a platform decision.

#3 – CPA (Cost Per Action)

This is an important component of the intelligence gathering. As a merchant you want to make sure your CPA (or Cost per Lead) is competitive with the competition because affiliates take payout into consideration when promoting merchants and if you are totally off line with the competition it is less likely you will have high quality affiliates promoting your product/service. With that being said, determining the CPA must also make sense financially, not just because the competition is doing it.  Remember if you are on a major network they take a percentage of every sale too, so keep that in the back of your mind when determining payouts.

#4 – Incentives Offered

Does your competition offer incentives to affiliates? If so, take note of them and try and incorporate them into the affiliate strategy. For example, a merchant is offering a $50 first sale bonus, or a tiered commission structure (default is 10%, but based on sales it can increase to 15%). The examples mentioned will also help in determining the CPA for the program, but also helps to increase affiliate activation once approved.

#5 – Cookie Life

Affiliates like to see a longer cookie life, but in reality a majority of affiliate sales occur within the first couple days. If the competition has a 30 day cookie the best bet is to have your cookie length at least 30 days, but can be higher. For an activation tip you can offer select affiliates a cookie life increase if they perform a certain action (i.e. 2 sales in the next 7 days and their cookie will be bumped two-fold ).

#6 – Action Locking Period

This is important for the fact that product returns happen and merchants want to protect themselves from paying commissions on returned merchandise.  ShareASale’ s default locking period is the 20th of the following month in which the transaction took place, where CJ Affiliate’s default is the 10th of the month. However, the locking period can be customized to a merchants return policy. If a private label platform is chosen then the merchant selects the day transactions lock and payments are made.

#7 – Program Ranking

Checking how your competition ranks on a particular networks will show you the amount of success they are having (or not) and if they have an affiliate base that will be substantial in promoting your products/services. As examples, CJ Affiliate uses a 1 – 5 bar system. 1 being the lowest and 5 being the highest, whereas ShareASale ranks their top 100 merchants.

#8 – EPC (Earnings per 100 Clicks)

This metric is important because it shows merchants if affiliates are actually making money promoting the competitors’ products/services. Merchants with a high EPC shows that affiliates are making money and its offers are effective. On the other hand, merchants with low or no EPC numbers show the offers and program are not performing well and affiliates are not making money. These numbers will help aid in the decision of what platform to choose. One network may have high EPC numbers, and the other may have lower numbers, which means the network with the high numbers has affiliates that cater to that specific market and should be considered.

Creating and managing an affiliate program takes deep competitive intelligence in order to be successful. The eight components of a competitive intelligence report should be compiled and reviewed intensively and then based on the data create an attractive, yet competitive affiliate program that has the chance to be successful for years to come.

How To Guide to Starting an Affiliate Program on ShareASale

You are ready to start an affiliate program and have decided to use ShareASale as your affiliate network, but now what? Setting up an affiliate program can be a daunting task, but let me show you a step-by-step approach to successfully set-up an affiliate program on ShareASale. In total there are 8 steps and I will describe what needs to be completed within each step.

Step 1 –Commission Rates and Program Description

This is where you determine your default commission rate per sale and/or lead. It can be entered as a percent or dollar amount (make sure the correct radio button is marked). If you are going to be doing a two-tiered commission structure this is also where you enter that information.

The program description should describe your product or service, the commission being offered and any other enticing details that will get affiliates to join. Along with the program description you should create your program agreement. This document will lay the ground rules for affiliates to follow while promoting your product/service.  It should include SEM restrictions, coupon policy, and other restrictions affiliates should be aware of. Finally, make sure to add your logo here. It should be no larger than 300 pixels wide and 200 pixels high.

Step 2 – Administrative Options

This step is where you have the options to control the behaviors of your affiliate program. Tasks to be completed include:

Setting the auto-approve affiliate option -we recommend reviewing each application individually.

Reply email text – this is the message that gets sent to potential affiliates when they apply to your program. It generally includes a short message informing them that their application is being reviewed and decision will be made within 24 hours and if there are any questions to reach out.

Email notifications (when affiliates join your program) – not necessary, but you can select “yes” to make sure you are reviewing each application as they come in.

Low balance notification – we recommend getting notified, just in case!

Balance threshold notification – you get an email notification when your balance hits the threshold entered here.

Email when a sale/lead takes place – This is totally up to you, but it could just be filling up your inbox. You can see all new transactions upon logging into the main interface of your program.

Tracking Cookie – How long do you want the time to be between the original click through and the sale? 60 days is their default, but you can select whatever one makes sense for your business.

Step 3 – Choose a Program Category

In order for affiliates to find your program you need to select a category. There are almost 40 categories to choose from (they only let you choose 1), so make sure you select one that relates to your business. You also add keywords here for affiliates to use when searching through ShareASale for merchants to partner with.

Step 4 – Place Tracking Pixel

We are getting closer to launch now. This is the most important step of the process because the pixel you will be installing on your site will be tracking all affiliate activity and will be the tracking mechanism for your program (clicks, sales, etc.). We recommend having a person with an IT background install to ensure it is done properly.

Step 5 – Testing the System

Once the tracking pixel is installed you must make sure it is working properly. What happens here is you do a test purchase to make sure the pixel is firing when necessary and all the information is being collected by ShareASale.  The transaction completed will be voided before the program goes live.

Step 6 – Funding the Account

General rule of thumb here is to deposit a minimum of $100 to start. Once the program is live you can set up the auto deposit feature (highly recommended) and deposit more money if you desire to cover sales that may come in initially.

Step 7 – Upload Creatives

In this case “creatives” mean your banners and text links. Depending on how many banners you have created there is an option for a mass upload as opposed to doing it one by one.  If you are not sure what banners to include check out this article that will provide more clarity.

Step 8 – Request Activation

This is final step. Once steps 1 -7 are complete you can request your affiliate program go live to ShareASale. Once activation is requested it may take 24-48 hours to go live. ShareASale checks everything again on their end to ensure you are 100% ready to start running an affiliate program

There you have it, a guide to starting an affiliate program on ShareASale. Follow the steps carefully and you will have a live affiliate program. Now it is time to start recruiting and making money.