Use an Affiliate Program to Create an Online Store
The Rich Dad Affiliate Program Case Study
If you have a content-rich website that has a nice tight target audience, an affiliate program is a great way to increase earnings from your site. The basic idea is to add the sponsor site’s banners or links to your site and if a visitor from your site clicks on the links and completes a purchase on the sponsor’s site, you earn a commission.
Another variation of this is to create a e-commerce “Store” (of products related to your content) that has product images and descriptions just like a regular store, but when the user goes to purchase or add the item to their cart, they are re-directed to that item on the sponsor’s store. Usually the affiliate program sponsor will make a variety of buttons and links available to give you many options for advertising their products. Rich Dad has a picture of each product with a link to that product’s page, as well as general links to different areas of their website.
An affiliate program is run by a site that is willing to pay to bring sales leads to their website. The difference between an affiliate program and a pay-per-click ad campaign is that the affiliate is paid only when a sale is made on the sponsoring site, as opposed to a click through. In addition, the amount of compensation tends to be higher; usually a percentage or fixed amount per sale. Your main objective as an affiliate is to send traffic to your merchant. If you click or mouse over the Rich Dad banner, you can see an affiliate “Id” in the link. This is how the sponsor site keeps track of who has referred the customer. Here are a couple quotes from the Rich Dad affiliate FAQ section:
“Q. What’s the commission plan? A. For each verified sale on our site resulting from a visit within 100 days of coming to RichDad.com via your link(s), you will receive a 15% commission on the price for which the product was sold, excluding tax and shipping. Your commission check will be generated quarterly minus commissions for any outstanding returns, test orders or incomplete sales. ”
“Q. How can I make bonus money with Rich Dad’s Affiliate Program? A. Besides regular commissions, you can make bonus commissions by referring sub-affiliates to us. For each verified sale on our site that comes through your sub-affiliates’ link(s) within 100 days of the visit, you will receive a 2% commission on the price for which the product was sold, excluding tax and shipping (your sub gets the 15% direct commission on their sale). ”
Cookie life: When your visitor clicks on a link with an affiliate id in it, a cookie is put on their computer. If they go and make a purchase during that visit, great, but even better if they go back to the merchant site any time in the next days, the you will also be credited with the sale. This system was devised to be fair for the affiliate since people will often visit the merchant a couple times before purchasing. The longer the cookie life, the better for you the affiliate.
Commission: The percentage or flat payment you earn if someone clicks on your affiliate link and makes a purchase on your merchant’s site.
Sub-Affiliates: Are other affiliates that you have referred. You earn a percentage (2% in Rich Dad) of the sales from their links as well. Some programs allow something similar to MLM where there are multiple layers of sub-affiliates but the standard is only one layer below you.
Earning Potential: This is a quote from the Rich Dad affiliate FAQ page. “It is easy to receive $50 – $500 per month to RichDad.comâ€¦ even if your site has relatively low traffic. Medium to high traffic sites can expect considerably more.”
Affiliate tip: if you are going to buy a lot of stuff from your merchant, sign up as an affiliate first. Then your sales will earn you the commission. You will have to check with the merchant to see if this is allowed. With Rich Dad, it’s okay but they reserve the right to cancel your account if in 6 months the only sales are to yourself. Every link to your merchant must have your affiliate id in it. Do not forget this one. You must have the id to collect the commission. Check to make sure that there are not any straight links to the sponsor site. These are leaks in you profit pipeline.
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Other Affiliate Programs: These are sites that each have many many affiliate programs to chose from.
(Hint: it’s easy to get carried away with these and sign up for everything. Think about the stores that you like best offline, they usually focus on one niche and do it really well. Confusing your visitors is one of the most common reasons for not converting sales.)