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Crucial Techniques
for Choosing Partner Companies for Affiliate, Wholesale,
Dropshipping Deals
Selling other companies’ products, via whatever means, including
dropshipping, joint venture deals, multi-level-marketing,
networking, and so on, necessitates certain market research be
carried out and questions asked before the individual hands his
business, reputation, money and future to an otherwise unknown
quantity.
Having studied various marketing methods over almost a decade in
business it appears to me that no matter whose products and services
you sell, by whatever means - on or off the Internet – certain
questions must be asked in advance of establishing yourself as a
reseller of any kind.
The Key to Success is to Choose Your Product and Company with
Care
#1 How to Choose Your Product
Certain key characteristics distinguish good products from those you
might have trouble selling and which may even land you in trouble
with the consumer protection authorities.
* The product should be something you will enjoy selling, maybe a
product for which you are a customer yourself. Is it a product or
service you can easily and enthusiastically relate to? Can you talk
freely about it? If not, you might have trouble promoting it, unless
you are a particularly gifted salesman. It’s also very unlikely that
you’ll be able to motivate your downline (in multi-tier programs) to
sell more of a product that you don’t genuinely believe in yourself.
* The product should sell well almost on sight and must represent
good value for money. It should be attractive and properly packaged.
It must also be fit for the purpose intended or returns will be
high. Hyped and over-priced items do not make good affiliate
products, except in the short term.
* Is the product or service something people actually want and will
continue to want? Or is it a fad or gimmick that looks set to
disappear long before your business gets off the ground?
* Is demand high enough for you to profit from? Do a lot of people
use the product? Does it have potentially unlimited demand? The more
people who use the product, the more suitable it is for you to sell.
* Is repeat demand likely? Is the product quickly used and in need
of constant replenishment? Repeat potential is preferable, meaning
regular sales from established buyers, unlike long-life products for
which you’ll always be chasing new customers. Consumables, like
household cleaners, perfumes and cosmetics, (even holidays and
fashion clothing), are best, allowing you to predict when repeat
orders are likely.
* Have you sampled the product yourself, suggesting you are well
qualified to recommend it to others: buyers and resellers?
* Is the product available from any other source? If so, is it
cheaper elsewhere? Better quality? Better design? Longer lasting? If
yes, dismiss this as a suitable affiliate product.
* Are there any spin-off products to offer customers? If yes, this
makes repeat business more likely even where the original product
does not itself have high repeat potential.
* Is the supplier reliable? Or will you have to keep customers
waiting for their orders, reducing credibility and profits for you?
* Is the product free from any controversy that might limit your
market share? Fur and animal products, adult photography products
and high payback loans, are examples of products with restricted
appeal and low suitability for affiliate marketing.
#2 How to Choose Your Company
Even with the perfect product, however, your supplier can still let
you down and it’s important to choose your company with care, or
risk disappointment, perhaps financial ruin, when the company closes
or changes direction a few months into your carefully planned
selling campaign.
Look for an established company, preferably one with a wide and
constantly increasing range of products. Many companies offer
products for several purposes, including health and beauty, toys and
children’s hardware, clothing and household equipment.
But how to spot a genuine company among less famous names? You can’t
always believe what the advertising literature says.
Look beyond the veneer and ask yourself:
* Is the company solid and reputable? What were its profits in
recent years? Is the company growing, stagnating or declining? When
was it established? Experts say the first two years of any company’s
existence are the most dangerous, and most important for you.
Generally speaking, the older the company, the more stable it is
likely to be. The exception might be a long-standing company which
has only recently turned to affiliate marketing.
* What history does it have? How many countries is it operating in?
What is the profit and turnover from each location? Is the firm
likely to be around for long or might it be a ‘flash in the pan’
company best avoided? Get access to audited accounts and, if you are
suspicious, look to financial researchers for a financial stability
rating.
* Is this an established affiliate marketing company or might there
be teething troubles which you, as a newcomer, can well do without?
* Do you know anyone who already works with this company, preferably
promoting the product or range of products you are now considering?
If so, what is that person’s opinion about the company and its
suitability for newcomers? If response is favourable, consider
whether that person is telling the truth, or is he doing his best to
recruit you with obvious benefits to his own bank account?
* Don’t be misled by claims of easy profits. If someone claims high
earnings, ask them to prove it. Ask to see their commission checks
and have your accountant examine the opportunity.
* Take a long and hard look at earnings potential before signing up.
Top companies offer very high profit potential while others involve
long hours for minimum rewards.
* Is commission and profit structure attractive and sound?
* How good are the company’s promotional materials? Are they
attractive, superior quality, do they do the job of selling?
* What training and back-up support is available to distributors?
What support can you expect from your sponsor? Is there an
established network of introductory and training meetings? Most
major companies offer help with selling, including training - often
at seminars and group sessions – sometimes from comprehensive
instructions manuals. Another prime sign of a good company is the
extent to which your sponsor will help you develop the art of
marketing. If he isn’t interested in the product, even less so in
selling it, the general rule-of-thumb is escape, whatever the cost!
* Are company and sponsor interested mainly in themselves, or are
they quick to discuss your needs, too?
* Does the prospect of working with this company excite you, or is
money your sole consideration? Remember, you have to be excited
yourself about the company to stand any chance of interesting
others.
* Try ‘selling’ the product to family and friends before you attempt
marketing for real. If there’s a problem, now is the time to sort it
out, not once you’ve signed up with the company.
* Is the company constantly developing and expanding its product
range? Does it have a research and development department? A limited
product range is not always a good sign and needs careful
investigation before signing up.
* Be selective and don’t opt for the first company you come by.
Arguably, it could be the best of the bunch, but how will you know
unless you make comparisons first?
Avril Harper
is the author of
A COMPLETE
NEWBIES’ GUIDE TO MAKING MONEY WITH CLICKBANK which you can
learn more about at:
http://www.avrilharper.com/clickbank.html
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