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In this LMScast, Alex Standiford from Siren Affiliates shared, developing incentive affiliate systems that compensate affiliates, instructors, and content producers according on performance, engagement, and conversions is the secret to increasing the number of courses and memberships sold.

Instead of using a single one-size-fits-all approach, course authors may build up many tailored programs by using Siren Affiliates in conjunction with LifterLMS. In addition to offering beginner-friendly programs for new promoters, this enables you to provide bigger commissions to professional affiliates. With the help of the platform’s multi-instructor revenue sharing feature, instructors can earn royalties automatically based on lesson completion, course engagement, or subscription performance.

They can also choose to promote their courses as affiliates and receive additional commissions.

In order for numerous contributors affiliates, content producers, or instructors to concurrently get rewards for increasing traffic, generating leads, or closing deals, Alex highlights the need of stacking incentives. You may create incentive programs that drive frequent launches, transform cooperation into growth, and take advantage of seasonal events like Black Friday to increase sales by utilizing coupon-based monitoring, event-based triggers, and customizable payout criteria.

Additionally, Alex points out that this strategy is quite flexible for different business models. Like partnership income sharing, content platforms, and e-commerce royalties, making it an automatic and scalable method to expand your online business without depending only on advertisements.

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Episode Transcript

Chris Badgett: You’ve come to the right place if you’re looking to create, launch, and scale a high value online training program. I’m your guide, Chris Badget. I’m the co-founder of LifterLMS, the most powerful learning management system for WordPress. State of the end, I’ve got something special for you. Enjoy the show.

Hello, and welcome back to another episode of LMS Cast. Today I’m joined by a special guest. He’s back on the show. It’s Alex Standford. He’s from Siren Affiliates. You can find that@sirenaffiliates.com. By the way, if you’re watching this live there is a special Black Friday discount that Siren is doing.

It is 70% off. The coupon code is Lifter 25, so L-I-F-T-E-R two five. And you can get started with an incredible affiliate platform. But the great thing about Siren is it’s not just an affiliate platform. Alex has developed something that. Allows you to really create any kind of incentive program you can think of.

The more I learn about it and understand it, my mind is blown. It happens whenever somebody gets into siren. We’re gonna get into that today, but first, welcome back on the show, Alex.

Alex Standiford: Hey Chris. Thanks for having me. I’m glad to be here and it’s great to see you again.

Chris Badgett: Yeah. It’s I love talking to you as a friend, but also the way that you think about incentive programs.

It is just fascinating and not only think about it, but you’ve literally solved it for learning management systems, sites, e-commerce, content creators. There’s all this stuff you can do. I know we talk about affiliates because that’s something that’s pretty well under. Understood. And we’re recording this in the middle of November, so this is Black Friday season.

Let’s just start with talking about. What people can do to set up an affiliate program and why Black Friday matters. Why event based sales like Black Friday. It’s not the only time of year you can run a sale. But how to work with affiliates to just get more traffic, sell more courses and memberships.

Alex Standiford: Yeah. Okay. I’m a big fan of Launch, launching frequently, launching often, launching early and I don’t necessarily mean just, your initial product launch. An initial launch, launching this podcast episode with you, or launching a cross promotion with other people doing an integration with another company or another plugin in my con in my case with Siren.

Obviously I’m using Siren myself, so obviously I’m thinking about it in that context. But the point is I’m very big on launching. And whenever I launch things, I love to launch them with somebody else so that I can borrow their microphone, I can borrow their email list, I can leverage the audience that they have worked hard to attract, to be able to grow my own business, and then also incentivize them to do so and give them something in return.

And that’s basically the fundamental. Value behind creating a really well thought out, really well designed, intentionally designed affiliate program. Because it lets you, not only are you able to grow your own business, but you’re able to also pay people who you like and trust and personally work with.

It makes me so happy to know whenever I’m working with you, for example, on affiliate program, doing affiliate links and things like that it makes me so happy to know. That whenever I get customers and I turn around and I’m paying for the traffic and the benefits that I received from these conversations that I’m paying you, I’m directly enriching your life instead of just paying Google for an ad or paying some faceless corporation.

So for me, affiliate marketing and creating affiliate programs and things like that. Yes, of course. It’s a great marketing strategy and there’s a lot of benefits to it, but for me it’s very much a personal thing too. It’s just awesome to me to think that I’m able to like help and enrich the lives of people around me at the same time.

Chris Badgett: You use Siren affiliates yourself. So at the beginning of this show, we mentioned the 70% off coupon code Lifter 25. Which you can use@sirenaffiliates.com. And. How does that work in the background? If somebody uses that coupon, and I know you also have like URLs that you can do that automatically apply that.

So if you’re watching or listening to this, if you go to the LMScast website, you’ll see a link and mention of the coupon code and stuff like that. But how does the affiliate system actually work?

Alex Standiford: Yeah. An affiliate, a typical affiliate program, works using a special link. Basically you have you, Chris, as an affiliate for Siren affiliates.com gets your own, get your own special affiliate link with a tag at the end of it.

And whenever somebody clicks on that link. I’m able to say, oh, hey, I know that came from Chris because it’s his special link. And then siren behind the scenes tracks, all of that, keeps track of that. And then if that person makes a purchase you then get credit for that sale. Now the coupon code works in very much the same way, whereas if somebody visits the site, even if they didn’t use your special link, if they just visit the site and they use the Lifter 25 coupon code.

It then knows, oh, hey, that’s Chris’s coupon, that’s lifter lm s’s coupon code. Let’s make sure that whenever this transaction’s complete that we give Chris credit for that. Or LifterLMS credit for that for that purchase.

Chris Badgett: Nice. What there’s I wanted to help people with a challenge I’ve had as somebody who does affiliate marketing.

I gladly pay affiliates for. Sending traffic that converts and all that stuff. There’s this challenge of, there’s, I see it as two types of affiliates. The first type is what I would call a professional affiliate marketer. They’ve been doing it, they for a long time, they know how it works.

They’re probably, promoting many different brands and things. But then there’s also a big opportunity to just get regular people that aren’t classically trained as affiliate marketers. To join your program. But they can’t, they don’t, they’re not going to do well with a lot of friction because they’re new to affiliate marketing.

They just wanna sign up and go. How do you, how does Siren serve the first time affiliate from their user experience standpoint?

Alex Standiford: Yeah the big thing about Siren is the, and one of the biggest reasons why I created Siren in the first place was because I recognized that, I was frustrated with one size fits all affiliate program solutions out there.

So basically the way they work is you create a single affiliate program and it just assumes that every program is gonna work in exactly the same way. And you end up with all these special cases where different people have different rates and they have different needs and stuff like that. Siren uses a multi-program approach.

So instead of having just one program, you can create as many incentive programs as you need. And I say incentive program, not just affiliate program, because there’s all kinds of different programs you can create with the system that goes way beyond just affiliate programs. But with with that, it allows you to create a program, different programs for different types of affiliates.

So maybe you have an affiliate program that is targeting those. Professionals. You could, it could be like a super affiliate program. I like to call ’em where, maybe they get a slightly higher commission rate or maybe their terms are a little bit different in some way. Then maybe you have a more basic affiliate program that most people go to that’s like public facing that you give to the people that aren’t professional affiliate marketers, but are people who would like to refer your business and hey, they would like to get a kickback whenever that opportunity comes.

So you can, it allows you to create multiple programs like that. And the thing that I love about that is it actually. Turns, it makes it a lot easier to treat your affiliate programs or any of your programs in general as a product in itself. So now all of a sudden you can create this program with its own rules, its own sets, settings, and have it as an offer that you then are able to offer as a product that you’re able to push out and sell and promote to affiliate marketers in a different way than you would promote it to the basic affiliate program to other people.

Chris Badgett: Let’s blow people’s minds a little bit with there’s the idea of the affiliate program, which is a, incentivized sales and tracking and system for that. But in the learning management system space, you solved a key problem, which is multi instructor platforms. And so if you’ve heard of a website like Udemy.

Where a course creator gets a cut of the revenue and there’s all these nuances of what if there’s one membership like masterclass? How do you, does everybody get paid the same or do they get paid based on course completion or popularity? Tell us about how you can use Siren to build a multi instructor rev share platform.

Alex Standiford: This is, this was actually one of the biggest reasons, one of the other biggest reasons why I created Siren in the way I did. Like I said, it’s an incentive program builder, not just affiliate program builder. It allows you to create these revenue shares like what you’re talking about. So for just to give you an example, Udemy the way that, that.

Company has historically ran. I’m not exactly sure how it runs today, but I know last time I checked about a year ago the way it basically worked was it has, you can sign up for a, as a customer, you can sign up as a, on a subscription model, so you can pay a monthly fee and have access to a large library of the courses that are available on Udemy.

And actually Kindle does this as well with their direct KDP publishing platforms. So you can opt into that and basically you get paid a share based on based on how many pages people read of your books compared to other people in the platform. And the same thing applies with Udemy, where they track based on the amount of time people spend consuming your content, consuming your courses.

With LifterLMS for example, you’re able to actually track things like whenever a lesson is completed or a course is completed. So because of that, we’re able to actually leverage that information to create our own revenue sharing platform with Siren that allows you to pay all of the multiple course creators on your platform based on how much traffic and how much.

How much the members of that program that site are consuming their content compared to each other. To put it in plain terms, let’s say you have a membership on your site for a hundred dollars a month, right? And you have all these different course creators on your site, and they all have.

Access and the people are consuming all these course creators content for free for the membership, you can set it up to where whoever had the most people complete courses and complete lessons in that last month will get the biggest share of the revenue. And then the person with the least gets the least amount.

So if you had a hundred dollars a month, maybe you’re creating a pool of 25%. So $25 per customer is available and it’s gonna be distributed among all of your course creators, right? And the top performer did the majority of the work. So maybe they get, of that 25%, they’re gonna get 10%, and then the rest of them get, 5%, 3%, 2%, 1%, whatever, based on how well they perform.

Chris Badgett: And this is where it becomes mind blowing is Alex has also figured out with Siren affiliates how to stack all these things on top of each other. So you can have rev share with your course creators. You could also have affiliate marketers sending traffic. You can even have content creators on your site.

Get like writing blog posts that if they click the link from their blog post or whatever, like all these people can be incentivized in different way. Yep. So it’s a, the ultimate pay for performance system. And there’s a lot of great content that Alex has created on how to actually set all this up and do all this, but he’s thought through everything.

For example, you don’t wanna. Accidentally give away set up a program that 150% of their revenue is owed to other people. But he’s thought through all this and teaches you how to do it. Yeah. Any pro tips there? ’cause like a beginner affiliate. Let’s just use a simple affiliate program. The first question you get is what percent commission should I pay?

Like, how do you coach somebody in terms of designing incentives and percentages?

Alex Standiford: Yeah, so the first thing that comes to mind for me with that is, of course you have to know your profit margin. You have to know, you have to know your business numbers fundamentally. And the commission tends to reveal itself from that.

So that’s a factor. Another factor in that is also just looking at your competitors, seeing what they’re offering, seeing how much what, how much what percent they’re offering and things like that. And also considering the fact that. One of the great things about Siren, because you’re able to run multiple programs, you don’t have to give everybody one percentage rate.

You could give the most important, the ones who are gonna be the most impactful to your business. You can, as I say, I like to say, roll out the red carpet for them, right? You can give them the highest rates, the best rates, you can give them the rates that are more competitive than your competitors.

You can. Do whatever and then have a smaller rate for the general public or something like that, potentially. And that will make it to where your average, your average percentage rate goes down a little bit between the two of them. The way I think about it is usually, like I said, first off your profit margin, how much that you would be willing to let go in a worst case scenario.

I also like to look at what my competitors are doing, and then I and then I think about, what kind of people I’m trying to attract and how I would want to divide up the different programs that I’m going to offer. And then, and that kind of helps me figure out a baseline for what that percentage needs to be.

Then I take that number, I cut it in half, and I start there because you wanna have wiggle room. You don’t wanna start with your entire. The entire amount that you’re willing to give away if you stretch and reach out on your tiptoes. You wanna start smaller than that and work up from there. That way you have a little bit of wiggle room to work with and a little bit of opportunity to do that.

Especially if you have a bigger, a bigger program that’s gonna hit on higher percents. ’cause the best affiliates are probably gonna be the ones that are gonna be hitting that percentage the most anyway. So you gotta be a little thoughtful about all of those things.

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So this is a podcast and not like a screen share situation, but, and you do have lots of great videos on getting sirens set up and how to design these programs, but just talk us through the. If somebody’s interested and they’re like, yeah, I’d like to make more money through a, an affiliate program and get more traffic to my courses and memberships.

How simple is this to set up? What are the basic steps?

Alex Standiford: Yeah, so in Siren the process is literally going into the site in clicking on add new program, which then it gives you a field that basically a program creation screen. And inside of there’s a few different key things such as tracking events.

Basically all programs are broken down into a few things. You’re defining what events you’re tracking to give somebody credit for, such as clicking on an affiliate link or using a coupon code or a lesson was completed or a course was completed, right? For whatever your program is. You then also have to figure out what the rules are, how, what, how you’re going to distribute.

The earnings the reward, right? Even with a program. It can pay multiple affiliates. It can pay just one affiliate. It just depends on how you want, how do you determine which collaborators win whenever whenever the transaction is completed. Then the third piece of that is how much.

How much are you going to give? Is it a fixed amount? Is it a percentage of the transaction? And it’s, I think it’s basically those two. And it’s also like how many items in the transaction. So maybe if maybe you have a program just an off the wall idea that I always think about whenever I think about this.

We’re coming into winter, obviously, and if you were a clothing site. Store selling clothes, and you still have this batch of shorts that were in stock and you wanna get rid of them quickly before winter closes. You could obviously create a clearance sale on your site, but you could also create a program that’s temporary that you give to your affiliates that says, if you sell these shorts, I will give you a bonus of $5 for every pair you sell.

So you could use a fixed rate reward for that, for example. So there’s a few different ways to determine, how much money you pay out whenever the reward happens. And then the last but not least is what parts of the transaction are actually eligible for this. So this allows you to filter programs so that they only apply to certain products.

This allows you to. Exclude parts of a transaction. Maybe you don’t want to include fees, maybe you don’t want to account for discounts. Maybe you have some really weird thing that I can’t even consider, and you wanna include shipping costs into it. Who knows? You can break down and determine what those are as well.

What’s really cool about that is you could then have, if you had those shorts for that program I was talking about earlier, you could have a program that only applies to those shorts, but then you could also have an affiliate program that applies to all products and they would be able to stack on top of each other, so you would be able to pay that.

You know that. That one time flat fee because somebody was able to sell those shorts. And then you’re also able to pay the percentage to the affiliate who was actually able to do that transaction. And then even on top of all of that, one of the other things that comes to mind for me for this is you can actually associate ownership of a product or a course.

With a specific affiliate. And what’s really cool about that is that it allows you to create royalty programs. With a multi-course instructor example that we were talking about earlier, you can set up a program so that whenever a course creator’s program. Product. Our course is sold. They always get a cut of the sales.

I recently had a customer, I have a customer right now a client of mine actually, who I’m helping them build their website. They they’re using siren for a a really cool desk, this really awesome desk set up, and it has this custom mat that fits, is inlaid into the desk perfectly. And that mat can be printed with anything on it.

So what they’re doing is they are working with a bunch of artists and they’re finding artists to create art for this mat. And then that mat they’re selling the mat with those different art pieces. And if that artist’s art is selected for that print, they receive a royalty. Then also, of course, they also get an affiliate link at the same time because they’re gonna be motivated to promote, Hey, go check out this awesome art for this desk.

This is my art. You should go buy it and you should go buy this desk and here’s my link. You can support me through that. So it, it gives, it, it just allows you to create really interesting programs and things like that go way beyond just having. A basic affiliate program with a thousand affiliates and 995 of them are just in different people who, are never gonna actually do anything with it.

Chris Badgett: Yeah that’s awesome. And Siren is a WordPress based solution, so all you have to do is install the plugin and start setting up your first program, which is a, which is amazing. It’s, we’re giving you some. Interesting use cases, but to actually get started it’s really not that complicated. And I like what you said too about the multi instructor platform.

Not only can an instructor earn a royalty because their course is getting consumed. But they can, they are also incentivized to promote their course on your platform as an affiliate. So if they go above and beyond just creating the content and getting a royalty, but also helping promote it on your platform, they can earn even more money by.

Basically joining the marketing team. Yeah. Which is awesome.

Alex Standiford: Yeah, it’s, yeah it’s great. And it’s, and that’s exactly what it was built for. So now it allows you to and the examples that we’ve done in the past, whenever, ’cause we actually did a video in the past about built literally built this exact Udemy coin that we’re talking about.

And in that example, we had set it up to where the course creator. Like I said, with a royalty program, they always receive 50% anytime that course or whatever, you can set it to whatever you want, but in our example, we did 50, I think and they can get, 50% of the sale every time.

That product is sold regardless of if they had an affiliate program or if they sold it or not. And then you can give them another, 40% and for the affiliate program on top of that. So now if they sell their own course, they earn 90% of that sale. And basically the platform gets a 10% commission or a 10% cut just for basically hosting it and maintaining it.

But what’s really cool is then you can on top of that, create a typical affiliate program, right? That isn’t for course creators. It’s just a regular program and you can have it like a 20% or something like that. That’s a lower amount. And whenever they close and they sell anything. They’re able to get a 20% commission.

And so at that point, 60% of the money is being consumed by the owner, but also the affiliate. But you still get a little bit more of that cut because they’re only getting 20% instead of 40%. So that’s what I mean about how, when you’re trying to figure out what your percentage is, it’s a little tricky.

You have to design the other pieces of the puzzle to understand how they all stack up whenever you’re using Siren, because it’s, it usually ends up being a more dynamic system than just a simple, dead simple, we have an affiliate program and this is what everybody gets.

Chris Badgett: Yeah that’s awesome. And the really, the most mind blowing part of all of this is you don’t have to do it alone, by developing, getting other people to help with sales and marketing, or creating course content. In this multi instructor example what Siren allows people to do is to work together and also be incentivized based on what, the performance of whatever effort it is, whether it’s content creation, course creation.

Affiliate marketing, sending traffic, whatever. It’s really a beautiful thing. And it unlocks growth. Yeah. And with proper incentives that all that stuff is set up and automated. So it is, the genius is in designing whatever your unique incentive program’s gonna be. It’s

Alex Standiford: yeah. Yeah, it is. And actually why, speaking of that, something else that comes to mind for me there that’s really interesting to me that I hadn’t actually fully considered when I originally built it, but this is, this has been what has come out of it.

If you create, you could create two programs. One that’s focused on generating leads and one that’s focused on generating conversions. And what’s really cool about that is it could be the lead focus program is for podcasters, bloggers, long tail keyword, longer term people who are, who take a little, who are earlier in the buyer’s journey.

And then you have somebody who’s focused on conversions. Maybe they’re focused on doing webinars and they’re doing the one-on-one things where there’s the, later in the journey and pushing people to actually make that purchase. You can create a program where it’s a split commission.

So the person who was in earlier in the journey will get a commission, and then the person who actually did the conversion also gets a commission. So they both get it. And what’s really cool about that is whether they know it or not, they’re collaborating, they’re working together instead of against each other.

And. If they happen to know each other or something like that, and they know that they’re both in the same system, the same program, they can actually create programs collaboratively together to create funnels together and build entire things in service of promoting your product. So there’s this entire idea where you’re able to create collaboration between your collaborators in a way that is really difficult to do.

In a monolithic single affiliate program solution, usually in those cases, they’re competitors, right? They’re always only one person ever wins in those solutions. But with Siren, since there’s multiple programs, there can be multiple winners and you can set it up to where they they’re able to actually work together and collaborate.

Actually, something that I’ve seen a lot of people do is they’re working with business partners. Who are owned a portion of the company and they’ll actually use Siren to track their revenue share with each other. So they’ll set it up to where they’ll say, I’m an owner this is the founder that it’s a 40, 60 or something like that, the revenue.

And they literally just build an incentive program that is just those two people and they just make it to where it’s a 40, 60 split and they set it up in siren and then they don’t have to worry about tracking how much everybody gets or anything like that. It’s just built directly into the system.

Chris Badgett: That’s awesome. And just one more pro tip before we go. It’s not necessarily just about making money, and this is why the incentive program is can be a lot more powerful than ads. For example if you wanna differentiate leads from sales, the simple way to think about that is you could have a free course on your site that you use to warm up your audience, introduce them to you, and stuff like that.

And then you have your paid program, but those people in your free thing are, I would consider leads and you could, I would rather pay these affiliates or partners, $5 for every free signup than do ad do an ad based funnel with Google or Facebook or whatever that’s, where I’m just rolling the dice and crossing my fingers and hoping it’s profitable.

So it’s, yeah it’s so cool what you’ve built.

Alex Standiford: Yeah. It’s awesome. Thank you. Yeah it’s been a lot of fun and there’s I’m honestly, and what’s crazy is I’m just, I feel like I’ve just like word vomited a lot of exciting, interesting things about siren here, but I feel like it just scratches the surface on a lot of the things that it can do.

So there’s some pretty cool solutions that I’ve seen where people are, have, created. Things that are similar. They’ve created programs more similar to DoorDash, but instead of delivery drivers, it’s vendors working on, fixing bugs or working on code for a website.

I’ve seen people, like you said, build Udemy clones. I’ve seen people build Netflix clones where there’s different, it doesn’t have to be educational content. It could also be it could just be video content, movies or special, some kind of niche entertainment. I’ve seen, obviously people create plenty of affiliate programs and things like that but the point is revenue share.

And royalty programs come to mind too. I’ve seen people create Etsy clones where they have a whole bunch of artists. There’s actually one customer I know who’s using this for 3D printing. So they have a site where people who do 3D printed models. They can share it on that site and sell those models to people who have 3D printers.

And when the product is sold, that 3D, the person who made that 3D model, gets a royalty. So there’s all kinds of different ways that this can be used. I see. I’ve seen local furniture shops use it for consignment deals to sell furniture in their. In their in their store. Because all they do is they associate those products with a specific collaborator, and then once that sells, they get com, they get their, their cut.

I’ve seen. All kinds of, just, there’s just so many the list just goes on and on. There’s just so many different ways car dealerships are using it to, create bonus programs on top of just selling for the regular affiliate deals. I use it in my own web agency.

I have a salesperson who sells things at my business at my web agency, and they, they’re using WooCommerce in that case to basically create quotes using an order. And if that order goes through, it just automatically gives, knows how much to give them for a commission. ’cause it’s just all handled directly through that system.

So the sky’s the limit. If you can figure out what to, how to make it work with, WooCommerce or lifter LMS and the program exists, I bet you can build it in siren and if you can’t. You should talk to me ’cause I would like to see what you figured out that you would wanna do that can’t be done.

’cause I bet it can be done.

Chris Badgett: Just for context, Udemy raised a total of $274 million. Over nine rounds to build this platform. Yeah. With LifterLMS and Siren, for less than 1% of far less than 1% of that, you can build the same thing. And you don’t have to spend $274 million. And this is the best time of year where you can get the best tools at the best price.

So head on over to siren affiliates.com. Use the coupon code Lifter 25. And that’s a great deal and get started. And if you want more leads and sales, start building your affiliate and partner programs. That’s it for this episode of LMS Cast. Alex, thanks so much for coming back on. Keep up the great work and at Siren and we’ll have to do this again sometime.

And if you’re listening to this and fascinated, go to YouTube and search for. LifterLMS, siren Affiliates, build a Udemy Clone, something like that. And you’ll find the in-depth tutorial where we showed you how to build a site like Udemy with the revenue share and everything. Just using Siren LifterLMS and WordPress, and you’re ready to roll.

But thanks for coming, Alex. We really appreciate it.

Alex Standiford: Yeah, thanks Chris. I’m glad to be here and I appreciate it. We will definitely do it again sometime soon.

Chris Badgett: And that’s a wrap for this episode of LMScast. Did you enjoy that episode? Tell your friends and be sure to subscribe so you don’t miss the next episode. And I’ve got a gift for you over@lifterlms.com slash gift. Go to lifter lms.com/gift. Keep learning. Keep taking action, and I’ll see you. In the next episode.

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