1. Program Foundation Setup

1. Ask the user about their product/service—pricing, LTV, profit margins, and typical customer acquisition cost.
   • Example: "What are you selling, what's the price point, customer lifetime value, and what do you currently pay to acquire customers?"
2. Ask the user who might become affiliates—customers, industry influencers, content creators, complementary businesses, or professional affiliates.
   • Example: "Who could promote your product—happy customers, bloggers/YouTubers in your niche, partners, or affiliate marketers?"
3. Ask the user about their goals for the affiliate program—primary customer acquisition channel, supplement existing marketing, or build brand awareness.
   • Example: "What's your program goal—drive significant revenue, diversify acquisition, leverage word-of-mouth, or reach new audiences?"
4. Ask the user about budget and economics—how much can you afford to pay per sale while maintaining profitability?
   • Example: "What percentage of sale price or dollar amount can you pay affiliates and still be profitable after all costs?"

2. Commission Structure Design

Build commission model that motivates affiliates while maintaining profitability:

Single-Tier vs. Multi-Tier:

• Single-tier: Affiliate earns commission only on their direct referrals (simpler, most common)
• Multi-tier: Affiliate earns on their referrals + smaller % on sub-affiliates they recruit (builds network effect but more complex)

Commission Rate Calculation:

• Benchmark: 10-30% for physical products, 20-50% for digital/SaaS, up to 100% for lead gen
• Your offer: Must be competitive to attract good affiliates but sustainable for your economics
• Factor in: Your margin, refund rate, support costs, payment processing fees

Commission Models:

• Flat rate per sale: Simple, predictable (e.g., $50 per customer)
• Percentage of sale: Scales with order value (e.g., 25% of purchase)
• Recurring: For subscriptions, ongoing commission (e.g., 20% for lifetime of customer or first 12 months)
• Tiered: Higher rates for high performers (e.g., 20% up to 10 sales/month, 25% for 11-50, 30% for 51+)
• Hybrid: Base % + bonuses for volume milestones

Cookie Duration:

• How long after click does affiliate get credit for conversion?
• Standard: 30-90 days for most products
• Longer (180+ days) for complex/expensive products with longer consideration
• Shorter (7-14 days) for impulse purchases or high-competition markets

3. Program Rules & Policies

Define clear terms to prevent abuse and set expectations:

Affiliate Approval Process:

• Auto-approve (anyone can join) vs. Application review (you vet quality)
• Approval criteria: Relevant audience, quality content, traffic levels, brand alignment

Prohibited Marketing Methods:

• Trademark bidding (can they bid on your brand name in paid search?)
• Spam, incentivized clicks, cookie stuffing
• Misleading claims or false advertising
• Coupon/deal sites (if you want to control discounting)

Payment Terms:

• Payment frequency: Monthly, bi-weekly, or threshold-based (pay when they earn $100+)
• Payment methods: PayPal, direct deposit, check, affiliate platform
• Refund policy: Do you claw back commission if customer refunds?

Attribution Rules:

• Last-click attribution (last affiliate before purchase gets credit) - most common
• First-click (first touchpoint gets credit)
• Multi-touch (split credit among multiple affiliates)

4. Tracking & Platform Setup

Technology Stack:

• Affiliate software options: ShareASale, Impact, Refersion, PartnerStack (SaaS-focused), ThriveCart (digital products), or custom built
• Features needed: Link tracking, commission automation, reporting dashboard, payment processing
• Integration requirements: Connect with your e-commerce platform, CRM, email system

Tracking Infrastructure:

• Unique affiliate links with tracking IDs
• Conversion pixel or postback for accurate attribution
• Dashboard where affiliates see: Clicks, conversions, earnings, payment history
• Admin dashboard: Approve affiliates, set commissions, review performance, process payments

Promotional Assets:

• Banner ads (multiple sizes: 300×250, 728×90, 160×600)
• Text links and pre-written email copy
• Social media graphics and caption templates
• Product images, logos, brand guidelines
• Demo videos or testimonial clips

5. Recruitment & Activation Strategy

Finding Affiliates:

• Invite best customers (they already love your product)
• Reach out to complementary businesses for partnerships
• Search for content creators in your niche (bloggers, YouTubers, podcasters)
• Join affiliate networks to tap into professional affiliate base
• Run affiliate recruitment ads targeting creators

Onboarding Process:

• Welcome email with program overview, commission details, resources
• Training: How to promote effectively, what messaging works, compliance rules
• Quick start guide: Get first link, access assets, make first promotion
• Success stories: Show examples of top-earning affiliates

Engagement & Motivation:

• Regular newsletters: New assets, product updates, promotional ideas
• Performance bonuses: Extra incentives for hitting milestones
• Contests: Top performer rewards, limited-time commission boosts
• Recognition: Feature top affiliates, give shout-outs, build community
• Support: Responsive affiliate manager, answer questions quickly

6. Program Launch Package

Deliver complete affiliate program blueprint:

Program Overview Document:

• Commission structure and payment terms
• Program rules and prohibited practices
• Cookie duration and attribution model
• Application and approval process

Tech Implementation:

• Platform recommendation with pros/cons
• Setup checklist and integration requirements
• Tracking testing protocol

Marketing Kit:

• Affiliate recruitment landing page copy
• Email templates for recruiting and onboarding
• Promotional asset library
• Affiliate agreement/terms of service

Success Metrics:

• Targets: X active affiliates in 90 days, $Y in affiliate-driven revenue
• KPIs to track: Affiliate signups, active promoters, clicks, conversion rate, revenue, ROI
• Optimization plan: Review monthly, adjust commissions/strategy based on data

Invite feedback on commission rates, program rules, or platform choice before launching to ensure alignment with business goals and budget.