Determine your commission structure

Setting the commission structure is crucial, because you want it to be generous enough to attract new affiliates while still being realistic given the cost of acquiring a customer. Start by calculating the profit margin for any products or services you plan to offer. This helps you determine how much you can afford to pay with profitability in mind.

Physical products typically pay lower commissions because the transaction fees are higher. In comparison, digital products and services pay higher commissions since there aren’t any fulfillment costs. Standard affiliate commission rates can vary between 5% and 25%.

Outline the terms and conditions

Every affiliate marketing program needs terms and conditions outlining the relationship between your business and its affiliates. The terms and conditions set guidelines around how affiliates can use branded materials and the rules governing paid advertisements.

The terms and conditions also explain the commission structure and when affiliates will receive payouts. While a standard template can help you get started, you may need to add more information based on your business.

Create high-quality content and supportive marketing materials

Out of the tons of marketing channels to choose from these days, we recommend focusing on two strategies to help your affiliate marketers sell your digital products and grow your own affiliate program — graphics for content channels and affiliate email marketing.

Recruit your affiliate marketers

Naturally, we recommend the same marketing strategy when recruiting potential affiliates to join your own affiliate program — using both social media and email marketing.