The benefit of adopting the affiliate marketing model is that it’s an extremely low risk way to open up new sales channels. The downside is that it works best with a product or service that is more of a commodity than a bespoke solution.

Many of the world’s largest organisations operate their own network or belong to an affiliate one.  The main reason for this is that the cost to enter is minimal and the business method is simply that you pay based on performance. This means that as long as the affiliate meets your branding and quality criteria, you are in the beneficial position of only needing to pay once a sale has been completed.

There are two ways to approach affiliate marketing; either by joining a larger well established affiliate network, or by creating and managing your own program. Both have their merits and are worth considering in more detail.

Econsultancy.com recently predicted the UK market for affiliate marketing to grow to £4bn in online sales in 2009. This is an extraordinary figure and demonstrates the size of the channel available.

If you are considering an affiliate marketing scheme we would suggest:

• Create objectives for setting up an affiliate program.
• Identify products, services or solutions that could be used.
• Gap analysis on sales training material available and other sales tools.
• Explore your own affiliate network or join a larger established one.
• What are the rewards and criteria for being an affiliate?