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Coupons can Encourage Sales and Affiliate Competition

Author: John McDonald | Posted: 29.09.2008 | Views: 118

If you operate an affiliate program, you may be wondering how to help your sellers increase their conversions. Chances are, you might even want to pay smaller commissions while increasing total sales. Sound too greedy to work? Well, there's a way you can help your affiliates compete for sales and set their own referral payment amount while probably increasing their total earnings anyway.

Some affiliate programs like Dreamhost have set up personalized coupons and promo codes that each affiliate can create and customize. Any time an affiliate's coupon is used to finalize a sale, that affiliate gets credit for the conversion. The discount provided by the coupon comes out of the coupon creator's commission - and this encourages affiliates to lower their own payment willingly, because it makes their coupon more likely to be used!

It is obvious that the customer is a big winner any time coupons and promotions reduce the cost of a product or service. Having multiple coupons and discounts to choose from even gives the customers a chance to customize their purchase for their own unique needs. This makes potential customers more willing to spend money - and this can increase the total sales of an affiliate program.

Yet, the affiliates promoting the product can win big too. Searches using keywords like "coupon, discount, and promotion" have high conversion rates, and allow affiliates to target surfers that are made closest to the point of sale. Since coupons also help track the affiliate's identity, they ensure promoters get credit even if the buyer has cookies disabled or doesn't click through a tracking link before the sale.

For affiliate managers, this can also help to reduce disputes and complaints from affiliate members. It is probably also the only way you can get an product promoter to gladly reduce their own commission! The best coupons will make tons of sales, and the creator of the coupon won't care if their revenue per sale is down 25% if their sales are up 50%!

Dreamhost coupons are a great demonstration of this personalized coupon program. To learn more, read about Dreamhost coupons here and view some examples of customized codes in action.
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