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Affiliate
Program is a ground floor opportunity. All you have to do is send visitors to
your affiliate web site by placing a textlink or banner on your website and receive
a commission on each sale, without the complication and expense of selling anything
yourself.
Instead, you earn a commission for producing a transaction. Affiliate
programs, also known as Referral Programs, Associate Programs, Profit Sharing
Programs or Reseller programs, give affiliates the ability to create an online
business selling thousands products and services.
One of the first affiliate
programs was run by the mega- bookstore, Amazon.com. They still have the largest
base of affiliates on the net although they may not be the best affiliate program
for many! with over 600,000 web sites being affiliated.
Affiliate programs
are generally offered by sites selling goods or services, although some affiliate
programs reward other types of transaction such as getting a visitor to sign up
for a free newsletter, or a download.
Some affiliate programs pay per lead
rather than per sale, in other words, you bring them a prospective customer and
they pay a fixed "finder's fee" for the chance to market to that customer.
This
is a typical arrangement for affiliate programs in the insurance, real estate
and credit card industries, for example:
Types of Affiliate Programs
Pay
per sale: If you refer a visitor to the online merchant's site and if visitor
makes a purchase you get a percentage of the sale as commission.
Pay per
lead: You get paid a one-time fee for generating a lead for the merchant. Usually
you get paid $2-$5 if the visitor you referred fills out an application.
Pay
per click: You get paid for every visitor you send to the online merchant regardless
of any sale or purchase. Usually companies pay $0.05 - $0.15 per click.
Two-Tier:
You get commission on direct sales you generate and also you get commission on
sales generated by affiliates you recruited. Usually companies pay 25% commission
for direct sales and 5% for sales generated by your affiliates.
Bounty:
You get a one-time finder's fee payment for the visitor you referred. You will
not get commission on any future purchases that customer makes.
The Benefit
of an Affiliate Program
Is that you just need to drive traffic to your
affiliate site. Write a few articles and provide a few links.
You don't
need to find or deal with brokers, wholesalers, inventory, process orders, shipping
& handling, customer service, tech support, handle returns, warranties, employees,
etc-
An affiliate doesn't even have to be present, your site will keep
earning money while you're sick, on vacation, or just doing something else.
Another
advantage of being an affiliate, is that you do it from almost anywhere in the
world..
How The System Works?
When you join an affiliate program,
you will be given a specially formatted URL (Links) that you should use to link
to the affiliate provider's site.
This will enable the affiliate provider
to monitor traffic to your site and pay according to the type of affiliate program.
Many
affiliate programs pay a commission based on a percentage of the revenue generated
by purchases made by visitors coming from your website.
For example; if
you're participating in an affiliate program that offers a 25% commission and
you
send a visitor who purchases US$100 worth of products, you've just
earned US$25 in commissions.
The commission rate itself can vary from 20%
up- to 50%+ in the case of intangible products such as eBooks or website subscriptions.
Affiliate
programs vary widely in terms of overall quality, reliability, commission, statistics,
the amount of help that the merchant site offers in marketing the products or
services it sells, and so on.
By thoroughly understanding an affiliate
program, you'll minimize the risk of not getting paid - and maximize your potential
earnings. Albert
Hallado Owner of netbizreview.com
(Guide To Internet Based Business) Albert is known for interviewing online business
experts and Helping Entrepreneurs Doing Business On The Internet |
