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  Post #1 (permalink)   03-23-2013, 03:48 AM
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The majority of the medium sized hosting brands have big paying affiliate programs so what are your thoughts on these affiliate programs?

Do you have an affiliate program of your own & does it work for you? What is your setup / commission rates?
 
 


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  Post #2 (permalink)   03-23-2013, 06:32 AM
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I think it is fine to have an affiliate program to help promote your hosting service, but the commission rate should be reasonable, not too low and not too high.
 
 
 


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  Post #3 (permalink)   03-23-2013, 12:58 PM
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Quote:
Originally Posted by Westpoint View Post
I think it is fine to have an affiliate program to help promote your hosting service, but the commission rate should be reasonable, not too low and not too high.
But then what is considered high and what is considered low? If a business paying high affiliate rates works for them then why not? If a commission structure that is low works for another company why not go for it?

It is all about what works and what doesn't work to help the growth of a company. Our affiliate program has some good commission rates and it works for us very nicely, I'm sure others with similar structures to us works for them also otherwise they wouldn't offer it?
 
 
 


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  Post #4 (permalink)   03-25-2013, 11:47 AM
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As said, affiliate system payout depends on the profit margin on products, one time or recurring payout, other alternative effective marketing tools.
 
 
 


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  Post #5 (permalink)   03-25-2013, 12:10 PM
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Quote:
Originally Posted by webhostors View Post
As said, affiliate system payout depends on the profit margin on products, one time or recurring payout, other alternative effective marketing tools.
Though companies with good marketing budgets can easily have affiliate programs which pay more than the product itself so not necessarily.

Our affiliate program starts at $70 per sale and goes up to $135 per sale whilst our entry level hosting package is $7 when paid monthly (or $4 when pre-paid for 2 years).
 
 
 


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  Post #6 (permalink)   03-25-2013, 12:21 PM
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Quote:
Originally Posted by Alex - Arvixe View Post
Though companies with good marketing budgets can easily have affiliate programs which pay more than the product itself so not necessarily.

Our affiliate program starts at $70 per sale and goes up to $135 per sale whilst our entry level hosting package is $7 when paid monthly (or $4 when pre-paid for 2 years).
So here the affiliate payment is going to be one time since you are already paying a good amount for the sale. Am I right.
 
 
 


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  Post #7 (permalink)   04-08-2013, 11:14 AM
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Our affiliate program works great! The setup fee was only the cost of iDevaffiliate.
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  Post #8 (permalink)   07-04-2013, 09:23 AM
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Our program is 50% of the sale generated. Sometimes this can mean few dollars, but many of the cases people promote Dedicated servers and VPS and get commissions of few hundred dollars or more.
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  Post #9 (permalink)   07-08-2013, 05:41 AM
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We also have our own affiliate program which is doing quite well. The commission rates vary from one product to another, but overall we are almost offering 50% commission to our affiliates.
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  Post #10 (permalink)   07-08-2013, 06:23 AM
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We also have our own affiliate program. Setup is free and commission depends on the # of packages sold.
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  Post #11 (permalink)   07-09-2013, 09:31 PM
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Definitely an interesting area...my previous hosting company did an affiliate program, my current one just does reseller benefits.

I can say personally we have had over 150% better results utilizing Resellers, but obviously that could be due to not generous enough affiliate benefits, not promoting it enough, etc etc....

Both are very effective though I agree, in our case I feel like affiliates aren't as common for Dedicated Server hosts like my current business. Previously I also sold basic Web Hosting as well which I feel is easier to tie into affiliate programs.

As for what's to high or to low, that's going to be entirely based off of your costs. If you're reselling Dedicated Servers for example, measure your average profits on each box and find a good middle ground that you're willing to sacrifice to affiliates in order to bring in more sales. I'd say start in a low to medium range and increase or stay at that point depending how it does. You obviously don't want to start to high and lose possible profits if you paid lower commission.

The pay out will be different for everyone obviously though. I think it's a great marketing strategy if done correctly as it can also pay off well too. I just personally utilize "Resellers" more since that's more effective in the Dedicated Server business (opinion).

Edit: Forgot to note, one provider that has been around for a long time that does Affiliate programs well is BurstNET.
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  Post #12 (permalink)   07-10-2013, 11:40 AM
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As someone who has used affiliate programs. I have seen different ways in which they are done. I have seen some where the money can only be used to pay for hosting with that same provider. That actually seems to be the way most of them are. I have seen a few where you get paid a percent of what the person buys and some of them are recurring and some it is a one time thing.

Even though I have used some of these I have hardly earned enough money to make it worth while. I do actually have money sitting on affiliate account with a few hosts that I can not withdrew because it is to low to withdrew. I do not recommend those hosts any more so will not be earning any more.

My powermonster.net account used to have an affiliate program but when they got bought out by birdhosting.com the affiliate thing was dropped. I do not remember if I actually earned any thing or not. I do not think I did though.

Oh and recently I signed up for arvixe.com out of curiosity really and they have something I would consider an affiliate program even though they do not call it that. Basically if you have a link to their site on your site you get a percentage off your bill. It does not even matter if some one clicks on it. This is actually how some of the affiliate programs I have used in the past worked. Hmm and I see they are the ones that started this thread. I hope they do not drop this type of thing though as it is preferable over affiliate links.
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  Post #13 (permalink)   07-25-2013, 05:16 PM
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Agreed with the other posts. We have an affiliate program, but really we haven't had much luck with people using them. We may not be spotlighting them well enough (or maybe it's not as good of a deal as people would like). But then again, we are still a fairly small company.

Conversely, our Reseller program does very well and attracts a decent amount of customers. It may be best to focus your efforts there.

Regardless, the info is good in this post, especially the mention of BurstNET's Affiliate program. I took a look, and it seems it is very well-rounded with lots of attractive features for potential affiliates.
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  Post #14 (permalink)   07-26-2013, 08:10 AM
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The fact is that even if you offer highly profitable referral packages to the webmasters and freelancers, since there are already dozens of reputable, very old, world-famous hosting firms which have been dominating the market for more than a decade, the chances of having many affiliates will be a bit low. You may consider investing the money in PPC and other forms of paid internet advertising channels instead.
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  Post #15 (permalink)   07-29-2013, 03:47 PM
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An affiliate program is what you make of it. You'll get out what you put in. If you just toss a copy of idevaffiliate or something on your server and hope for the best, you won't get much from it.

Step 1: Get affiliates. Want affiliates? Check out some affiliate marketing forums, post a little there, and talk some of them into using your program. They'll do the marketing from there. If it's a good program they will, without a doubt, tell their friends. They're a very chatty bunch, it's the nature of the business. Get a few, let them spread the word. They are chatty in the most awesome way possible.

Step 2: Culture what you've got. Listen to them, hear their feedback. Be quick to do payouts. They're always going to want more money, so you can't always listen to that part, but you can listen and react to other things - perhaps instead of a one time 50% payment they'd prefer a recurring 5% payment. Perhaps they want options in regards to that. Maybe they need custom coupon codes or assistance with banners.

Step 3: Close the sale. You can get all the traffic in the world to your site, but if you can't close the sale, every other step you took wasn't worth it.

The most important thing to remember is that serious affiliates see themselves as businesses. It's fair to call them businesses and for many it's their only source of income. You have to treat it like a business to business transaction. You can't act like they're a hobbyist promoting your site for fun because the serious ones are not hobbyists.
 
 
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