Affiliate Program Orientation Guide

Affiliate Program Orientation Guide

2. The Affiliate Program

Here's the basic business for the Affiliate Program...

SiteSell products can help any person, in any country, who either has a business on the Web or is looking to start one. However, there's no way we alone could market to weavers in Chile, real estate agents in Omaha, or Webmasters from Germany.

An affiliate program gives us the power to reach into every niche of every corner of the globe. In short, it helps us build our business, with you, our partner in sales. This is important, that we return something of value, immediately, and in the long term.

The Affiliates allow you to build a true business...

one that can't be terminated tomorrow
one with ongoing income
one that has true equity (i.e., it has value that can be sold).

The SiteSell Affiliate Program is designed to reward ongoing...

generation of sales -- ultimately, this is what it's all about.
referral of new customers -- new customers are the life-blood of any business.
Team Building -- affiliates can become more than just "members who sell."

The key phrase here is "ongoing activity." The Affiliate Program discourages the "short-term-burst-then-collect-residual-income" approach. The burst approach does achieve short-term success. But it's doomed to long-term failure as the affiliates become less and less active, sitting back and waiting to collect "passive income." The company dies because everyone sits back. The affiliates are left with nothing.

We prefer to make this clear up front in order to weed out the "get-rich-quick-and-easy" seekers. These people are doomed to a lifetime of disappointment, and we do not want to contribute to their unhappiness.

OK, let's see how the 5PP works, from A to Z...

2.1 Your Unique "Referral-Redirect" URL

You (the affiliate) refer customers to your own Unique Referral-Redirect URL ("RR URL"). This is a special "yours only" link. When a visitor clicks on that RR URL, a CGI-REDIRECT (a programming code that redirects from one URL to another) sends her to the corresponding "real" SiteSell landing page (designed to close the sale for you).

When you applied to become a Affiliate, there was a place on the registration form where you entered a word to determine your RR URL.

Let's say the word you entered was "tutors." You would send your visitors to one of the affiliate landing pages available to you using your RR URL...

https://buildit.sitesell.com/tutors.html

This RR URL redirects you to the SBI! home page. You will NOT actually see any "RR URL page," since no such page exists. The RR URL is just a "nice interface" way to redirect visitors while we write your cookie onto them.

The CGI program then writes a 9-month fixed cookie for her at that time. Since this URL "belongs" to you for 9 months, the cookie tags that visitor as "yours." Even if she returns up to 9 months later and orders SBI!, the commission goes to you.

If you wish to change your RR URL, you have two options...

Use the Modification Page of the Affiliate Club. The original one you chose now because invalid, so be sure to update your RR URLs on your Web site, blogs, Social Media platforms, etc.
Create a Name Park It! domain (ex., any-name-available.com) and have it redirect to your RR URL. This way you keep your commission-earning cookie intact. And you have a shorter, easy-to-remember Web site address that is perfect for business cards, PowerPoint presentations, flyers or even word of mouth.

Your RR URL writes your cookie onto a visitor and re-redirects that visitor to a specific site or special offering. For the next 9 months, if that person buys, you receive the commission.

The SiteSell Promotion Center contains all your RR URLs for the SiteSell product sites, special offers and tools. It's your main business hub.

For example...

To redirect your visitors to the SBI! site, create your RR URL like this...

https://buildit.sitesell.com/YOUR_RR_WORD.html

Or to do the same for the Case Studies page...

https://case-studies.sitesell.com/YOUR_RR_WORD.html

Always test before putting up a Web page, or sending out an e-mail, with your RR URL. There's nothing worse than losing sales due to a typo.

2.2 First-Exposure Cookie Details

The FIXED Cookie remains YOURS for 9 months *IF* YOU are the first to reach that prospective client.

After 9 months, the cookie STILL remains valid. You still receive a commission if someone who has a 10-year old FIXED cookie buys (assuming that cookie is YOURS).

BUT...

If another affiliate reaches that prospective client (who clicks on the new affiliate's link) after 9 months, the newly FIXED cookie now belongs to the new affiliate for 9 months.

To repeat --> After 9 months, your FIXED cookie can be overwritten. Until then, it remains yours even if the visitor with your Fixed cookie clicks on another affiliate's cookie. After that... you still get credit for the sale, UNTIL that person clicks on the RR URL of another affiliate.

If your "Fixed Cookie" is not over-written after the 9 months expires, AND if the prospective client purchases after that, you WILL still receive credit for a sale if the cookie has not been over-written.

When someone purchases with your FIXED cookie, the FIXED cookie becomes PERMANENT (i.e., same treatment as for TEMP cookie). Once a cookie is PERMANENT, credit for future sales works the same as before.

This gives first-time exposures (to someone who had been searching for "turtle food") 9 months to complete the sale. This is fair...

1) given the potentially long sales cycle of people who were not seeking information about online businesses, and...

2) since it also rewards IMers after 9 months (half of all these types of sales). Without this provision, IMers would be "closing" for "regular" affiliates without any remuneration.

In other words, SBIers need IMers to help make the sale. And IMers benefit from sales to prospective SBIers who would otherwise not be there. The commission "turns over" at 9 months.

NOTE: The Fixed Cookie never actually "expires." The date is the period during which it is "FIXED" to a certain affiliate. After that date, it still exists "forever" (i.e., same way that the TEMP cookie continued). If it has not been overwritten by the time of sale, the original affiliate receives the commission.

A few final points...

If a visitor with a FIXED cookie clicks on a link of the same affiliate some time later, the FIXED date is extended to 9 months from the date of the NEW exposure.

For example, suppose Affiliate A is a "first exposure." 90 days later, suppose that the prospective customer clicks on another link BY THE SAME AFFILIATE. The date of expiration of that cookie is now 9 months FROM THAT MOST RECENT EXPOSURE.

However, as usual, once the 9 month period has expired, the next RR URL link that the person clicks will overwrite the previous cookie to the NEW affiliate's cookie.

In the new system, PERMANENT cookies still exist. PERMANENT cookies only occur after a...

1) Sale

2) Affiliate Conversion.

To sum it all up...

If a prospective SBIer purchases and if that person has your cookie, the customer becomes your Lifetime Customer, subject to the usual TVI, etc. Ditto for affiliates.

2.2.1 Cookies and Browsers

All current browsers are cookie-enabled by default. The user must actually turn cookies off if she does not want to accept them, and almost no one does that. so don't worry about losing sales due to people turning cookies off.

How do we know this does not happen? Two ways...

1) Statistics from formal studies about how people browse.

2) Our own sales statistics -- over 95% of our sales occur due to affiliates already -- and most of the other 5% happen because of our own marketing efforts.

Even if a customer of yours destroys her cookie, we've got that covered...

Let's say that your customer formats her hard disks, or has a computer crash, or otherwise expunges your cookie, and then later returns to make a purchase. Our state-of-the-art database identifies that customer (during a subsequent purchase) through a unique cascading series of identification steps.

Here's how...

The database seeks matches for "identifiers" like the last 7 digits of the phone number, the last 7 digits of the credit card, physical address, etc., etc. In virtually all cases, the customer will be identified as yours -- about the only "leakage" are customers who go into a Witness Protection Program!

And, we have one more extra precaution -- when we do identify these customers, the program rewrites the cookie in your name.

2.3 The Commission Structure

The 5PP sets commission rates on a product by product basis. To see the most up to date commission structure for all SiteSell products, review the payment schedules at...

https://www.sitesell.com/affiliateagreement.html/#COMPENSATION

2.4 The First Purchase

The first purchase by a referred customer generates a First-Purchase Sales Commission (FPSC). To encourage ongoing and new referral activity, we set this commission high. This encourages affiliates to attract and refer first-time customers.

New customers are the lifeblood of any company. So we set the First-Purchase Commission high. (A first-time customer is recognized because she has your fixed cookie.)

Then it's up to us to retain that customer by OVERdelivering on every front... product quality, customer support, etc.

For example, SBI! has a 25% FPSC. The commission paid to you for this sale will be higher than our net profit margin (after expenses for overhead, salaries, new product development, marketing, and customer support).

That's how badly we want that new customer. Of course, this high commission is great for you, the affiliate. It builds a solid income and business for you, now and in the long run.

To view the First-Purchase commission chart, visit...

https://www.sitesell.com/affiliateagreement.html#FIRSTPURCHASE

2.5 The Lifetime Customer

As mentioned above, a first purchase also converts your fixed cookie to a permanent one. So if that customer returns later, no matter when or how, the 5PP recognizes your permanent cookie (or database match).

This permanent cookie results in a lifetime customer for you. It empowers you to build a true ongoing business with great income potential.

In most affiliate programs, affiliates never see another penny for subsequent purchases by customers originally referred by them. With some programs, a customer must actually purchase during the first visit in order to earn a commission!

But with your permanent cookie, it does not matter how or when the customer buys again. If she bookmarks our site and returns and buys later, or if she returns and buys due to our own marketing efforts, your permanent cookie recognizes that you introduced us to this customer.

But... without the proper checks and balances, this could encourage a... "sit back and wait to get rich" attitude. I'm not saying that you would do this. Neither would I. But some people would. It's human nature. And here's a second problem...

We could not survive if we paid such high first-time commissions on every sale forever. Why not? Even a cyber-company such as ours has high costs. We devote a large percentage of gross sales towards product development, marketing, and customer support.

Bottom line?

To continue to pay the high First-Purchase rate on a lifetime basis is unrealistic. No serious company (that wants to last) pays its sales force in this manner. "Real world" companies don't pay any kind of lifetime commission.

Ultimately, the combination of a high lifetime commission and inactive affiliates would bring SiteSell down, which would also make your investment of time and money worthless.

So here's how we turn... a lemon into lemonade.

Let's say that someone wearing your fixed cookie bought SBI!. She then buys SiteSell Services 6 months later for her second site.

This is not her first purchase -- SBI! was. So you, the affiliate, are eligible to receive a bonus Repeat-Purchase Sales Commission (RPSC).

The RPSC is derived from the FPSC (First-Purchase Sales Commission) according to your Total Value Index (TVI) (more on TVI in a second). Since we adjust the FPSC according to the TVI, we call it the Pre-TVI RSC.

OK. OK. I can picture you asking...

"What the heck is TVI!?"

It's your Total Value Index for the month.

"What the heck is the Total Value Index?!"

Another good question.

Stay with me for a moment. This is important...

Total Value Index (TVI) is a measure of how much you helped SiteSell grow.

Since the growth of a business is determined by new customers, the TVI measures First Purchase DOLLAR SALES. So your TVI = Total Dollar Sales generated by First Purchase Sales during a month (or since your last check).

So why is this of interest? Simple... the higher your TVI, the higher your RPSC.

Hang in there -- I know it's complicated. The payment plan for Repeat Purchases (and later, for Team Commissions) is a bit complex. It has to be -- there is just no super-simple formula to pay everyone according to what they deserve. And actually...

If you're like me, you've probably seen several Multi Level Marketing propositions. Their payment programs make my head spin! The TVI concept is a snap in comparison.

Let's say that, in a given month, you have generated $800 worth of sales from First-Time customers. Here's the calculation...

Your TVI = $800 (we rounded to the nearest hundred for our example).

Hey, that wasn't so complicated after all!

According to the Affiliate Agreement, the TVI of $800 results in a Repeat Purchase Sales Commission (RPSC) that equals the full FPSC.

The RPCS Schedule is available at...

https://www.sitesell.com/affiliateagreement.html#REPEATPURCHASE

As an active affiliate, it is easy for you to reach the highest payments. The mid levels are set to encourage the lower-but-trying group. The lowest levels eliminate the "I wanna get rich but don't wanna work" people.

OK, back to our example...

Let's say that you had generated Repeat Sales that added up to a total Pre-TVI RSC (Repeat Sales Commission) of $1,400.

As the Schedule outlines, a TVI of $500 (i.e., First-Time Sales Dollars = $500) or more generates the full 100% Repeat Sales Commission bonus (all amounts are in CAD). For our example case study, that's an additional $1,400. since the TVI was $800, you earn the full amount.

However, let's say that another affiliate had not made a single sale. His TVI would be 0. So the Repeat Sales Commission payout would be 0% on any Repeat Sales Commissions that may have been generated.

In other words, Repeat Sales Commission rewards partners-in-sales handsomely. We seek long-term relationships and love making payments for thousands. Why? Because it means SiteSell is growing, too.

The TVI puts strong emphasis on new customers. First-time customers grow the business, both yours and ours. By factoring in this importance, TVI yields a true measure of how valuable your PREselling efforts are to our growth.

Bottom line?

A lifetime Repeat Purchase payout schedule that is scaled according to TVI is the best of all worlds...

1) It recognizes the lifetime value of the customer.

2) It addresses the passive nature of this lifetime commission if an affiliate becomes inactive.

3) It pays according to ongoing valuable activity. This encourages active sales efforts by serious affiliates.

4) It allows us to sell outstanding business-building solutions at fair prices. Pie-in-the-sky promises and outrageous commissions to affiliates can only result in...

overpriced products that don't deliver - bitter customers, and
margins that don't allow the company to grow = unprofitable company. But ultimately, you're the one who pays. Either way, your affiliate business dies.

Scaled Repeat Purchase Sales Commissions empower the serious, active affiliate to build up a large residual income. And the incremental thresholds are attainable.

For example, if your TVI for a month is $500, and two Repeat-Purchase visitors follow your recommendations and each one purchases SBI!, then you would reach 100% for that month.

And here's the best part...

This steady income builds substantially... a business that has real value... a business that you can sell for a substantial amount. In short, you build equity.

2.6. The Lifetime Affiliate

The Affiliate Program also recognizes and remunerates the lifetime value of a visitor who becomes an affiliate. It helps serious affiliates to earn much more than just a living wage.

"What's so great about a lifetime affiliate?"

The lifetime affiliate empowers you to build your own Team. How does this all work? Let's say that a visitor "wearing" your fixed cookie becomes an affiliate. We enter this new affiliate into your Team.

"So what?"

You can earn a percentage of your Total Team Earnings (TTE -- the total of all commissions earned by all affiliates in your Team for the month).

We call this the Commission on Total Team Earnings (CoTTE). It's a powerful concept. The CoTTE is as close as you'll ever get to ... cloning yourself.

Here's the CoTTE schedule...

Calculation of the CoTTE works the same way as it does for Repeat-Purchase Sales Commission. The higher your TVI, the more valuable you are, the more you earn. So...

The percent of TTE increases according to your TVI for the month. The CoTTE commission schedule is available here...

https://www.sitesell.com/affiliateagreement.html#TEAM

OK, back to our example one last time. Remember your TVI? It was $800. Suppose your Total Team Earnings (TTE) for that month was $8,000. In other words, the sum of all your affiliates' commissions was $8,000.

Based on your TVI of $800, you earn the max, an additional 25% of the TTE... $8,000 x 25% = $2,000 = your CoTTE.

But, suppose your TVI was only equal to $220. Your CoTTE would amount to... $8,000 x 12% = $960.

Dedication to your Affiliate business is exactly what the TTE concept is designed to reward!

It's pure WIN-WIN, because it means that we are growing, too.

You do not earn any percentage of sales generated by your affiliates' affiliates. That is Multi-Level Marketing. The 5P Program is not MLM.

Payment of Team Commissions recognizes the lifetime value of an affiliate referred by you. So the payment structure rewards active achievers!

It also encourages Team building and coaching. How do you coach your team? Use the Export Team feature in the Affiliate Club. Click here for more details.

And check out the team-building strategies in the Affiliate Marketing Guide.

https://5pmarketing.sitesell.com/articles/team-building.html

Even a small percentage of your total team earnings can amount to a lot of money. But if you dedicate yourself to promoting the Affiliate Program, you can earn more than a small piece -- you can earn up to 25%!

And frankly, that's what we'd love you to do... dedicate a good percentage of your marketing efforts towards building a large income. Believe me, it will be our pleasure to pay you a very large commission total every month.

Since this is the single, most powerful way to develop a substantial, regular income, use the Net to its full potential.

Coach your Team. It is your mini-community. You are the leader. Start your own newsletter. Encourage questions. Stimulate activity. The more you help to build your Team, the bigger your Affiliate business grows.

As the fourth great Pillar, the Team concept has the power to build up income that significantly exceeds what is generated by your personal sales commissions. Your efforts will repay you many times over.

2.7 Limited Number of Affiliates

Here's what happens in the typical affiliate program. The first affiliate makes out like a bandit. Heck, the first few hundred do well! But pretty soon, there are 50,000 active affiliates, all fighting over the same customers. A little competition is a good thing. Too much is not.

We'll will support Affiliate affiliates by limiting the total number. We want all affiliates to earn a lot of money.

Accounts of affiliates who have not made a first-time sale in more than a year are deactivated. (9.02 of the agreement actually only requires 3 months)...

https://www.sitesell.com/more-info/affiliateagreement.html

The result is a smaller number of more highly paid and happy affiliates.

It's the difference between exploiting people for your own business needs, and developing WIN-WIN sales partnerships. And that's the fifth and final pillar. It provides rock-solid support for your Affiliate business.

2.8 The Five Pillars... A Solid Income Base

Bottom line?...

The Affiliate Program starts with quality business-building solutions. Then it builds with a strong fair compensation program. nbsp;And it closes with long-term protection for you. It puts your best interests first!

Add to that the lifetime TEAM commissions...

And then the final "plus-plus-plus"...

We won't allow your earnings to dwindle to nothing by 100,000 other affiliates "jumping on the bandwagon."

The 5PP rewards the motivated affiliate who wants to build a large, stable income, with no risk!

There you have it -- the "Affiliates" in a nutshell.

Now let's zoom into the Accounting section of the Affiliate Club where you can see, at-a-glance, the effectiveness of your PREselling efforts.

<< Back to Introduction | Forward to The Accounting Section >>