An affiliate program is a system in which an owner or licensee of a product allows people outside of his or her own company to promote for them for a percentage of the profit. As a business owner, you need to maximize the power of using affiliates because it's much, much easier for 100 people to sell 1000 units of a product than it is for one person sell a thousand units of a product. It's possible, but it would likely take more time than you have, so affiliates are generally the answer.

To really gain benefit from affiliates, you need to set up a system that encourages them to promote. Let’s take a look at some of the key features of an effective affiliate program.

1. Have excellent products.

This should go without saying, but you must have products that offer real value to your clients. If your products aren’t appealing to their prospects, or if you get a lot of refunds, you will lose your affiliates. Not to mention, you will lose your clients and leave a negative impression in your target market.

2. Have a proven sales process.

If at all possible, test your sales copy and all of your promotion tools before asking affiliates to promote for you. A sales letter that’s known to convert is much more appealing to an affiliate than one that’s untested.

3. Sell the program.

Be sure the sign-up link for your affiliate program is active and easy to find. Set up an information page that tells the prospective affiliate what they can hope to gain by joining your program – and just like any other sales letter, focus on benefits.

4. Provide your affiliates with the tools they need.

Be sure to create and test promotion tools for your affiliates. Also take the time to develop a training program so that if they’re inexperienced they’ll be able to get started right away with your program.

5. Track and pay your affiliate commissions accurately and promptly.

Again, this should go without saying. Regularly check your affiliate tracking system to be sure sales are being credited as you expect. Set a regular time to process affiliate payments, and stick to that time.

6. Keep your affiliates informed.

Communicate regularly with your affiliates. Let them know what’s going on that they can promote, send them additional tips on how to promote, and give away free gifts when you can. Think of ways you can continuously build relationships with your affiliates.

7. Ask your affiliates what you can do to help them.

Developing an affiliate program is a lot like building a list. It takes time and regular interaction to build trust and rapport. At regular intervals, it’s very helpful to survey your affiliates and ask them what you can do to make their efforts really pay off. This not only helps build the relationship, it will also help you improve your affiliate program.

Remember that your relationship with your affiliates is a partnership that must benefit both you and them.