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GoAffPro’s Multi Level Affiliate Marketing: Explained

GoAffPro offers merchants the option to set up a multi-level network for their affiliate program. In a multi-level affiliate network, existing affiliates can recruit newer affiliates under them. The parent affiliate will earn a network commission on the referrals made by the recruited affiliates. The network commission becomes an incentive for existing affiliates to expand their network by recruiting more affiliates under them.

Multi-level marketing also helps merchants who are struggling to find affiliates for their program. In the multi-level system, the job of recruiting new affiliates gets delegated to existing affiliates. A multi-level affiliate network can considerably increase an affiliate program’s performance.

It is essential to know how the multi-level network works and how the commission distribution is done through different levels.

For example: If you have a network A > B > C. Where affiliate A has recruited affiliate B and affiliate B has further recruited affiliate C.
Here, we take a look at how the commission distribution will work:

If affiliate C refers the sale:

Affiliate C will earn the regular commission, affiliate B will earn the level-1 commission, and affiliate A will earn the level-2 commission.

If affiliate B refers the sale:

Affiliate B will earn the regular commission, and affiliate A will earn the level-1 commission.

As per the above examples, it can be observed that the immediate parent of the affiliate (who refers the sale) is the one who earns the level-1 commission. This is generally how the commission distribution works in the multi-level affiliate network.

Another significant aspect of the multi-level affiliate network is the network commission. It is the commission that the upline or parent affiliates earn on the sales that are referred by their downline affiliates.
There are two methods of calculating the network commission:

In the simple method, the network commission is calculated as the percentage of the order value.

For example: If the order value is $100, default commission is 10%, level-1 commission is 5% and the level-2 commission is 2%.

Here, the affiliate who refers the sale will earn $10 (10%), the level-1 affiliate will earn $5, and the level-2 affiliate will earn $2.

In the dynamic method, the network commission is calculated as the percentage of the sale commission.

For example: If the order value is $100, default commission is 10%, level-1 commission is 5% and the level-2 commission is 2%.

Here, the affiliate who refers the sale will earn $10 (10%), the level-1 affiliate will earn $0.5, and the level-2 affiliate will earn $0.2.

The level commission, in this case, is calculated as the percentage of the commission that the affiliate (who refers) the sale earns.

Broadly, the commission distribution and the commission calculation are the two integral parts of the multi-level affiliate network. Merchants should carefully consider these while setting up the multi-level system for their affiliate program.

GoAffPro provides merchants with the option to set up their own multi-level network for their affiliate program. Options such as different commission calculation methods, setting up downlines as customers, and more, allows merchants to tailor it as per their requirements. Check out the app: GoAffPro

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5 Reasons to Choose Affiliate Marketing for Your Business

Affiliate marketing has become one of the preferred ways of marketing for brands and merchants globally. It provides great results and requires little to no money to start.

In affiliate marketing, the affiliate promotes the products of a store and brings in sales. For every referral sale that they bring to the store, they get paid a commission. This way, merchants are assured of sales and only pay the commission after a successful sale has happened.

Here we take a look at some reasons that you should be looking into affiliate marketing for your business:

Beneficial for small/new businesses

Affiliate marketing provides small and new businesses a cost-effective solution for marketing their products. With little to no initial investment needed for affiliate marketing, it makes it a great deal for merchants who are seeking to expand their business and grow.

Economical for merchants

An added benefit of affiliate marketing is that merchants only need to pay the affiliate when they refer a sale successfully. This means, merchants only pay when they get guaranteed returns in terms of actual sales. Such benefits make affiliate marketing quite economical for businesses.

Reach more people

Another advantage of affiliate marketing is that it enables brands, especially smaller ones, to reach a wider audience. Since affiliate marketing involves affiliates promoting brands on social media, businesses profit from a broader reach. It also implies that a greater number of newer customers would visit the store to make a purchase.

Closely tied to influencer marketing

Influencer marketing and affiliate marketing are integrally related. Influencers also receive money or commissions from promotions they run on social media or from their content. Over the last few years, affiliate marketing has grown to incorporate various aspects of influencer marketing and its benefits.

Various tools for affiliates

Affiliates in affiliate marketing may use a variety of methods to generate referral sales, one of which is coupon codes. Coupon codes often boost sales while also attracting new buyers who are unwilling to pay full price for a new product. Discounts inspire them to try out new products and services.

GoAffPro provides merchants with the option to start an affiliate program for their store for free. Check out the app: GoAffPro

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Tips on Building a Healthy Merchant-Affiliate Relationship

A good relationship between the merchant and the affiliate is essential for an affiliate program to succeed. Merchants need to maintain a healthy and functioning relationship with the affiliates in their program. Merchants being on good terms with affiliates also increases their loyalty and trust.

There are various steps merchants can take to build a healthy relationship with their affiliates. Here we take a look at some of the steps merchants can take to do this:

Timely & regular payments

Payments play a significant role in how affiliates feel about a program. It is, therefore, crucial that merchants pay affiliates regularly and on time. The biggest issue that affiliates highlight regarding programs is the payments.

Merchants should establish a plan for regular and timely payments to affiliates. This alone boosts the confidence that affiliates have regarding a program.

Clear and open communication

Merchants must keep an open line of communication with the affiliate of their program. Affiliates should be able to approach the merchant in case of any issues or help.

Merchants, from their end, can use this to send information to affiliates informing them regarding changes to the store or upcoming events. Affiliates can use this to clarify any issues with the promotions or inquire regarding a product.

Provide instructions & resources

Informing affiliates regarding their job and what the merchant expects them to do is necessary. Affiliates should have a clear understanding of what and how they need to promote. It is, therefore, important to provide instructions to the affiliate.

Furthermore, merchants can provide resources, such as promotional images, banners, or even sample products to affiliates, so that they can produce high-quality content according to it.

GoAffPro provides merchants with various options on managing affiliates effectively and building a stronger merchant-affiliate relationship. Merchants have the option to set up payment terms for regular payments. There is also an option to send emails to affiliates, broadcast a message to either all or individual affiliates and to upload creative media files for affiliates to use. Check out the app: GoAffPro

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Tips to Improve Merchant-Affiliate Partnership

It is very important to maintain a healthy merchant-affiliate relationship in the affiliate program. This helps to enhance affiliate loyalty and build long-term trust. 

While running an affiliate program, a merchant can do a lot to improve their partnership with affiliates. In exchange, this is also advantageous to the merchant and the program he is running, because this ensures that the affiliates are working harder to bring in more sales. 

Here we take a look at some of the steps that a merchant can take to ensure this:

Commission Rates for Affiliates 

The commission is an important part of this partnership between the merchant and the affiliate. A competitive commission rate can go a long way in running a successful affiliate program, which also helps to make it easier for more affiliates to be recruited into the program. 

Some affiliate marketing platforms also offer merchants to set custom commission rates for specific affiliates. Affiliate experience can be further improved by setting goals for them that can be compensated with rewards. This also helps to boost the morale of affiliates and keep them going. 

Paying Commission to Affiliates

Affiliate payments play a significant role here, merchants should look at increasing the number of supported payment methods to make it easier for affiliates to collect payments and also to allow making payments on time. Timely commission payments can significantly boost affiliate loyalty and trust.

To make paying affiliates simpler, merchants may consider setting payment terms, such as paying affiliates on a weekly or monthly basis, which would make paying affiliates a more efficient operation. A minimum amount of payout may also be set for affiliates, which will not only help merchants reduce their transaction fees on payments, but will also encourage affiliates to promote as soon as they join the program to get paid. Affiliates can also be issued with payment invoices for tax purposes and to make the process more formal.

Customization Option for Affiliates

Many traders are missing the affiliate experience or their services. By offering personalized options for coupon codes and referral links, affiliates will have more control over their promotions. Not only that creative media files such as videos or banners that are appropriate for various social media sites can also be created.

Also, merchants can use a multi-level affiliate network feature that allows affiliates to recruit affiliates under them and to earn a sales commission on sales made by affiliates down the line in the network.

It is therefore an essential job to maintain a health merchant-affiliate partnership, prompt payments to affiliates, fair and reasonable commission rates, and a range of configuration options that allow affiliates to easily build promotions are great ways to enhance their affiliate experience with your system.

We would recommend looking into GoAffPro, the number one affiliate marketing app on Shopify. It offers merchants, the option to set up custom commission rates, set up payment terms, automatically generate payment invoices and provides various customization options for affiliates.

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5 Tips for a Healthy Merchant-Affiliate Relationship

The merchant-affiliate relationship is a vital part of an affiliate program. It is important to have a clear line of communication within an affiliate program for it to be successful. This builds affiliate trust and loyalty. Hence it is important to manage affiliates in your program efficiently.

It is important to keep affiliates satisfied since it is them that do the hard work of promoting your products. Therefore having a healthy relationship with affiliates and keeping your affiliate program transparent is beneficial. Having a good reputation in the affiliate marketing also helps in attracting more people to your affiliate program.

Merchant-Affiliate Relationship

Here are five practices you can follow to have a healthy merchant-affiliate relationship

Table of Contents

  1. Keep Payments Streamlined
  2. Have Clear Communication
  3. Offer Bonuses to Affiliates
  4. Provide Affiliates with Creatives
  5. Educate Affiliates on Promotions

1. Keep Payments Streamlined

A great way of maintaining a healthy merchant-affiliate relation is by keeping payments regular. Information such as minimum payouts and payment schedules should be made clear to affiliates who register for your program. It is generally advisable to keep a wide variety of payment modes available to your affiliates since this helps them receive payments conveniently according to their location or region. ‌

In a report by Tipalti, over 47% of affiliates dropped from an affiliate program due to payment issues, where one of the leading payment issues was that the payment was late.

According to the report, affiliates often share their business experiences on affiliate communities and forums and payment issues are a leading problem they face. A negative reputation can affect an affiliate program’s success. ‌

2. Have Clear Communication

Keeping a clear line of communication with your affiliates is a good practice, this keeps your program transparent. A welcome email to your affiliates is just not enough, consistently being in touch is very important. It is also important to lay out basic program details such as commission rates, payment cycles, etc to your affiliates to avoid confusion.

Keep a Clear line of Commnication with Affiliates

A great way of communicating with your affiliates is by sending them a weekly affiliate newsletter, which can inform them of new products, sales, and other changes that are taking place in your store. This helps affiliates stay ahead and plan their promotional activities. It is also good practice to address questions and queries by affiliates in a quick and timely manner.‌

3. Offer Bonuses to Affiliates

A great way to increase the performance of affiliates and improve relations is by offering affiliates with bonuses. It is good practice to reward affiliates for their performance, you can also set monthly targets for your affiliates, where they can be given a bonus, once they achieve the target. Not only does rewarding affiliates increase their performance but it also improves morale. This is a great way to build affiliate loyalty.

Offer Bonuses to Affiliates

Another great way of improving merchant-affiliate relations is by providing newly registered affiliates with a signup bonus. This is a great way of financially incentivizing newer affiliates to get them started. Various other ways such as organizing giveaways of products or discount coupons to affiliates also help in building a healthy relationship.‌

4. Provide Affiliates with Creatives

It is good practice to offer affiliates with creative material such as banners, logos and other types of media files to make it easier for them to carry out promotions. By providing affiliates with creative media, they can directly go ahead with their promotions.

Provide Affiliate with Creative Media

This is particularly useful for affiliates who do their promotions on social media platforms such as YouTube or Instagram. By sending them media files that are suited for these social media platforms, it makes it easier for affiliates to promote your product with their followers. This also helps in keeping the promotional activity in line with your brand identity.‌

5. Educate Affiliates on Promotions

It is useful to inform and guide affiliates about the program you are running and suggesting them with best practices that they can carry out for their promotions. This, in combination with keeping a clear line of communication with your affiliates, can be a great way of increasing sales by following proper practices.

Educate Affiliates

By educating affiliates about your products, it can make it easy for them to carry out the promotional activity that is more suited to your brand. This also helps in improving sales and reaching out to a wider range of customers.‌

Conclusion

It is an important part of an affiliate marketing program to maintain a healthy relationship with affiliates. Affiliates carry out the promotions, which results in sales. A good relationship with affiliates not only offers better sales but also increase the reputation of your brand. This also results in increasing affiliate loyalty and trust.