Affiliate Marketing is a form of performance-based marketing. One of the methods for online performance marketing is a CPA (Cost-per-Acquisition or Cost-per-action) campaign where actions are taken by the user, such as downloading a game, installing an app, purchasing an item or leaving their detailss etc. An affiliate gets rewarded for each new user he brings in who performs such actions.
An affiliate network is dealing with these concepts on a daily basis and serves as the middle man between publishers and advertisers. The main duty and at the same time challenge of each affiliate is to find the most attractive offers with the highest payouts and the shortest flow.
The CPA method makes it easy to measure the instant impact of your campaigns spending. However, even when you landed a jackpot with your offer, you still have to keep optimizing it and scale it up in order to stay profitable over time.
Here are some tips how to stay on top of your campaigns
Tip#1: Be an expert and know your niche
In this business, credibility is a key factor therefore it is outmost important that you know your product, your offers, your verticals, as well as your traffic suppliers. If you don’t have enough experience, you will probably not be able to suggest the right niche. For example, one should focus only on a few verticals such as dating, e-commerce, utilities or sweepstakes. If you are new to the CPA business, you should read forums and consult with colleagues before you jump into the cold water. You have to acknowledge the fact, that you have to work your way up from low-tier networks to exclusive ones in order to leverage your expertise.
Tip#2: Keep close relationships
Keep close relationships with the Account Managers and the partners you work with. You need to know them on a personal level that’s why it is better to build a small but strong network than a big and superficial one. If they trust and know you they will most probably inform you about upcoming good offers, raise your payouts and improve your payments terms which will help you stay on top of the business.
Tip#3: Don’t be shy to spend enough money
Prepare to invest money. From nothing comes nothing. Have enough resources and invest at least 50 to 100 dollars to decide whether a campaign has the potential to become profitable or if you should pause it. After spotting a successful campaign you need to find a way how to scale it up.
Tip#4: Manage your cash flow intelligently
Affiliate networks deal with a lot of money therefore a CFO is an important player in this process. He needs to manage your cash flow right which requires a high level of negotiation skills. The CFO needs to plan ahead in order to pay your publishers as late as possible and collect your money as soon as possible. Like this you will maintain a positive cash flow to continue running your operations,
Tip#5: Reputation is everything
Today we are living in a virtual world where we transfer lots of money to people we don’t know. Reputation in this case is everything. Collect as many references and recommendation as possible before you start your collaboration with the advertisers. Therefore, you have to do a reliable due diligence.
So, be smart and get ready to rock your next campaign!