Determine Your Commission Structure

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Building Your Affiliate Marketing Strategy: A Step-by-Step Guide
Phase 1: Planning and Setup

1. Define Your Goals & KPIs:

What do you want to achieve? (e.g., increase sales by X%, generate Y leads, reduce customer acquisition cost).
What are your key performance indicators (KPIs)? (e.g., Conversion Rate, Average Order Value (AOV), Customer Lifetime Value (CLV), Return on Ad Spend (ROAS) specific to affiliates).
Establish clear, measurable goals before you start.
This is critical for attracting quality affiliates.

Commission Type:
Percentage of Sale (most common): e.g., 5-20% of the product price.
Flat Fee per Sale: e.g., $X per successful purchase.
Pay-Per-Lead (PPL): For lead generation (e.g., sign-ups, demo requests).
Pay-Per-Click (PPC): Less common in true affiliate new zealand mobile number list marketing, more in traditional advertising.
Commission Rate: Research industry averages. Too low, and top affiliates won't join; too high, and it impacts your margins. Consider tiered commissions to reward top performers.
Cookie Duration: How long after a click is an affiliate still credited for a sale? (e.g., 30, 60, 90 days). Longer durations are more attractive to affiliates.
Payment Frequency: How often will affiliates be paid? (e.g., monthly, bi-weekly).
3. Choose Your Affiliate Platform/Network:
You can run an in-house program or use a network.

In-house Program (e.g., using Shopify apps like GoAffPro, LeadDyno):
Pros: Full control, no network fees, direct communication with affiliates.
Cons: Requires managing tracking, payments, recruitment, and support yourself. Best for businesses with a dedicated team and established brand.
Affiliate Networks (e.g., ShareASale, CJ Affiliate, Rakuten Advertising, Awin, Impact.com):
Pros: Access to a vast pool of pre-vetted affiliates, robust tracking and reporting tools, payment processing, compliance management, dedicated account managers.