Shawn Collins' Blog

Affiliate marketing and other stuff from Shawn Collins, co-founder of Affiliate Summit.

  • Home
  • About Shawn
  • Contact
  • Learn Affiliate Marketing
  • Disclosure
  • Archives

Affiliate Marketing ROI

September 27, 2007 by Shawn Collins

How can I manage the ROI of affiliate marketing?

Basically, there are three cost centers for a merchant running an affiliate program.

You’ve got the commissions to affiliates, affiliate manager or team, as well as the cost for the technology or affiliate network you are using.

Add all of those components up and subtract them from the revenue generated by the affiliate program, and you can determine your ROI.

Just tweak that around until it works for you.

One thing to bear in mind is that one of the biggest costs in affiliate marketing is to roll out a lousy affiliate program.

If you have an offer that is not compelling or a site that is not converting, it can doom the affiliate program.

Do a lot of fine tuning until your affiliate program is as good or better than all of your competitor’s affiliate programs.

Otherwise, you’ll find that you have a lousy ROI.

Share this:

  • Twitter
  • LinkedIn
  • Facebook
  • Reddit

Related

Filed Under: Ask Shawn Collins

Shawn includes advertising links in some posts - these do not influence the content, and they promote products and services he uses.

Social

  • View shawncollins’s profile on Facebook
  • View shawncollins’s profile on Twitter
  • View shawncollinsatx’s profile on Instagram
  • View affiliatetip’s profile on Pinterest
  • View shawncollins’s profile on LinkedIn
  • View affiliatetip’s profile on YouTube

Blogroll

  • Affiliate Manager
  • Austin FC
  • Austin, TX Airbnb
  • Bose Hearing Aids
  • Extra Money Answer
  • Movies That Affected My Life
  • This is Affiliate Marketing

Return to top of page

Copyright © · Shawn Collins Consulting ·