Affiliate Marketing For Sales Success
Back in the late 90’s a little store called Amazon.com starting selling books online. Amazon later began adding more and more products. They knew their own marketing efforts could only take them so far. This is when they implemented an affiliate marketing program that would allow their customer and Web marketers the ability to earn a percentage of their referral sales. Brilliant! With thousands of affiliate marketers joining the Amazon sales push the sales of the company went through the roof and is now one of the most powerful online stores in history.
After you have your hair extension store up and running you may want to look into implementing your own affiliate marketing program just like Amazon. Shopify offers many Affiliate Marketing APPS that allow you to quickly get your affiliate marketing program up and running.
How Much Do Affiliates Make?
This is really up to you. There are plenty of creative ways to pay affiliates depending on the structure of the affiliate app you choose. Most product based affiliate programs pay between 8 – 10%. If you try and pay too little it will not be much incentive for your affiliates to market your business.
Why Would I Give Up A Portion Of My Profits?
This may be a question you might ask. As an example, let’s say you make a 25% profit on your sales. You decide to payout a 10% affiliate commission on all referral sales. That would leave you with a 15% profit. Most hair extension orders average around $200. With these calculations you would be making $30 on an affiliate sale opposed to $50.
The question is… How much would you have made with no sale because you didn’t have the affiliate referral? ZERO!!! I don’t know about you but $30 sounds way better than zero. Then there is always a good chance that the new customer will refer a friend of theirs. Then you will make the full 25% on that order.
Imagine building a network of hundreds of online marketers and stylists that refer their clients to your site so they can earn a small percentage of the sale. What would 100 referral sales a week with a $30 profit do for your life? That is an extra $3,000 per week. Imaging how many bundles of hair extensions you can sell! Does setting up an affiliate marketing plan sound good yet? It is about to get better!
Affiliate Marketing + Dropshipping = Scalable Success!
Not all businesses are built to grow fast. The cost of inventory to have on hand can get really expensive. Especially with the high cost of inventory related to the hair extension business. The fantastic part of dropshipping hair extensions is that you are working with a company that already has the inventory and can handle the increased sales. If your business quickly grows because your team of affiliates really start selling all you have to do is sit back and watch the profits come in.
If your affiliates are doing all the selling and the Dropship Extensions APP team is doing all the shipping then all you have to do is keep collecting the profits. Start building your team of sales associates with an Affiliate APP from Shopify. Happy selling!