Before considering entering the affiliate marketing channel, it is very important to check out what competitors are actively doing in the space. The main questions that need to be answered are:
1. Are you price competitive?
2. Do you have margin to offer stronger commissions to affiliates?
3. Can you offer equal or stronger incentives?
4. Can you offer stronger cashback amounts?
If not, then you will have a disadvantage when trying to grow you program. Ultimately affiliates will look at 3 areas, the brand reputation, the commission offered, and most importantly the offers available. They see the offers as the key metric of the 3 areas. If the offer is good, they know they will be able to convert customers. Some affiliates are happy to take a commission decrease to get a stronger offer. There is no point having a large commission offering if you have a poor offer that will never convert.
Note: Commission and voucher strength might not be too important for a brand if you are the market leader in price or are the only supplier or a certain product or service.
When setting up with a network, they will normally (if you ask) supply you with a snapshot of how brands within a certain niche are performing, they won’t supply exact figures, but it gives a good indication of how similar brands are performing within the channel. Some networks will help in the affiliate recruitment process by letting brands know the types of affiliates thst perform well within the niche. Other information such as what commission competitors are paying affiliates, competitor program average conversion rates, and voucher. Some of this information is available in public searches by looking for the program name in search engines.