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Setting up an affiliate program is an ideal way to help expand your business’ reach, increase sales and create a new revenue stream. An affiliate program is a commission-based structure, offering rewards to partners who bring in customers and/or generate successful sales.

The most common model of affiliate programs is called a “pay-per-sale”. In this model, you offer a commission to your affiliate partner in exchange for each successful sale they generate through their efforts. Other popular models include “pay-per-click” or “pay-per-lead”.

To set up an effective affiliate program for your business, there are several important steps you need to take.

First, you will need to decide who will be included as an affiliate. Ask yourself what types of people or businesses would be best suited to promote your products or services. Affiliate partners should be measured and evaluated regularly to ensure they are meeting performance goals.

Next, set up tracking tools that will help you keep track of leads, sales and commissions. You’ll need to be able to accurately monitor the progress of your affiliates to ensure they are properly incentivized.

Creating an effective commission structure is also essential. Commissions should be competitive, but should also account for the resources needed to generate a sale. This is why it’s important to decide up front who will be included as an affiliate and what type of promotion they will be engaging in.

You should also take steps to ensure that your affiliate partners know and understand your products, services and policies before they start promoting them. This will help them provide more accurate and helpful reviews, advice and promotion for potential customers.

Finally, you should create a portfolio of marketing materials that affiliates can easily access and share. These materials should include information about your products or services, as well as promotional materials and incentives to use.

By understanding the basics of setting up an affiliate program, you can create an effective program to help extend your reach, boost sales and generate additional revenue streams.