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Starting a Closed Affiliate Program

Discussion in 'Affiliate Programs' started by Redmancometh, Sep 15, 2012.

  1. Redmancometh

    Redmancometh Newbie

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    I never thought I would posting on a blackhat forum for a business, like, ever. I was a skiddie when I was about 15, and moved on to a full-blown cracker at about 17. I was an anarchist little turd, but the people in that culture are sociopaths, and that's kind of what I was expecting. Your community however actually seems to be very friendly and helpful! I've seen a lot of completely-no-strings-attached programs and lists on here that are pretty valuable. You guys are pretty freaking awesome! That being said I don't want my URL to show up on here for obvious reasons.

    Hi, I'm looking to start a closed affiliate program for a site that I am running. Before I jump into details on the program let me give you details on our business. We sell electronics via dropship, and we have all the necessary business documentation e.g. DBA, TIN, Sales Permit(tx).

    Until a couple of months ago we didn't even have a site. I have been selling off of linkedin, and our reps have been selling in various small-scale marketplaces/offline.

    Currently we are almost 100% a b2b supplier. For the most part my reps use offline marketing, and solicit business at ma/pa PC repair shops and the like. This is great because it enables us to move a lot of volume at once, but we give them preferred (b2b) pricing. Preferred pricing cuts into our margin, and I dislike that. We would like to make a transition into the consumer market, and I think a fantastic way to start would be an affiliate program.

    The only affiliate program that I have participated in myself is Amazon's, and it is fantastically awful. There are rules and regulations you are bound by if you are selling for us. As a brief overview of the details we do not allow spam, but we do allow posting on forums and blogs. In other words feel free to make a post or two, but don't go overboard. That's the same story with any affiliate program.

    We will allow almost every type of marketing possible, and will provide you with coupon codes. The coupon codes' purpose is two-fold: for tracking, and to make the customer feel special. They will have significant discounts. If you want to use your mailing list feel free, so long as your electronic mail fit the can-spam regulations (they are fairly lax.) If you want to sell in person (US Only) go for it. If you want to sell on facebook, go for it. If you want to push traffic (our Conversion rate is gonna be very low though) I can plug the referrer URLs into our analytics and track your sales.

    If you are selling in person feel free to chase down B2B leads. I will take care of all but the initial quote (and I will help you with that), and you will still make 50% off the initial transaction. Further, every transaction past that point we do with them you will make 30% off, so you know, residual income :).

    Our items are fairly high margin, and we pay an extremely generous cut. We pay our reps 50% of margin for anything they sell! Our highest margin laptops ($800-900 range mostly) make $210/transaction. The average margin of our laptops is in the $90-125 neighborhood, which can be great money. There is one caveat, but I am absolutely up front about it. The items have a 14 day return period, so I don't release funds until 14 days after your sale. You are guaranteed a payout via paypal within 3 days of your sale clearing. If we ever fail on that for you, I'll give you my number so you can put pressure on me, and make sure I remember. Later on in our business relationship, if you trust me with your banking info, I will set you up for direct deposit via paypal. This will circumvent the 2.6% paypal cut when I send your money.

    I can't PM people until I get 15 posts, and it turns out I also can't post my electronic mail. So just ask questions in this thread for now. I have an electronic mail account with our domain of course, but again I don't want my URL here. With my electronic mail I'm sure you can find our site if you really want to though. Speaking of which after an undetermined period I will make you an electronic mail for our domain.

    For now I only want 10 affiliates(individuals), because that's as many as I would feel comfortable managing. If you want to become a banner affiliate, or something else site-related, we can work that out too.

    Thank you all, and have a fantastic day!

    PS: I said electronic mail, because it wouldn't let me post with the common abbreviation of that...

    PSS: adamkpm if you read this I would absolutely love to bring you into the fold! F those CJ guys.
     
  2. Redmancometh

    Redmancometh Newbie

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    I haven't gotten any response on this yet. If anyone has a suggestion on what terms are unappealing please let me know. We just figured out who our supplier's suppliers are. There won't be some pissant affiliate network in the way taking a cut. We've had only one RMA, and we move over $100k worth of inventory a month business-to-business. As I said we can provide business references, and not just any references. Our largest customer is a healthcare network supplier who resells to physicians.There are no restrictions on how you make sales as long as you don't make us look bad.

    Here is an example product for a regular consumer:

    an HP business series with an AMD Quad-Core A6-3620 6GB at 1600 mhz 1TB for 462.99 plus 11.50 for shipping. Shipping is combined so that it's cut down to 60% for two, and 40% for 4 or more.
    For every one of those you sell you at that price make $40. That is the lowest price we're allowed to sell it for, but we usually sell that model for significantly more. Let's say you make it move for retail minus 10% (the amount your coupon code will take off) at $529.99 that's $45 per unit. It includes a 1 year warranty with HP.

    Here is an example product for a business customer:
    HP Desktop with and i5-2320 500GB HD at 7200RPM 4GB at 1333 Win 7 Pro 64-bit
    and a 1-1-1 warranty.


    We accept RMAs within 14 days on most products: defective or not. Some products we will only accept an RMA if the product is defective.

    If I don't get a response I'll just let this thread die. This post isn't to bump the thread, because I can't edit the last post
     
    Last edited: Sep 19, 2012