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Affiliate Program Basics





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


MORE RESOURCES:

Earthtimes (press release)

Viacom Ad Sales Fizzles in Second Quarter
MEDIAWEEK - Jul 29, 2008
We expect to continue to see double-digit growth in our affiliate revenue in the near future.” The Viacom chief also said that Nickelodeon would look to ...
Viacom's Forecast: Eyes On Cable MediaPost Publications
Blockbusters Drive Viacom In Q2 Multichannel News
all 130 news articles


Cablevision Systems Corporation Reports Second Quarter 2008 Results
StreetInsider.com (subscription), MI - Jul 31, 2008
The increase in net revenue was driven primarily by VOOM's higher affiliate revenue (impacted by Cablevision's carriage beginning July 1, 2007 offset by ...


Forgetful people -- remember the Kwiry program
Los Angeles Times, CA - Aug 12, 2008
The program is supported by advertising as well as affiliate revenue. If you buy something on Amazon through Kwiry, for instance, the company gets a small ...


Adweek

Time Warner's Q2 Yields Mixed Results
Adweek, NY - Aug 6, 2008
Ratings and CPM increases at the Turner nets and CNN helped boost ad sales by 11 percent, while affiliate revenue grew 10 percent. ...


Affiliate marketing driving higher share of sales at Petco
InternetRetailer.com, IL - Aug 15, 2008
... of about 1500 publisher sites, its top-producing affiliates, about 2% of the total, account for about 85% of all affiliate revenue, Georgoulis says. ...


Wall Street Journal

CBS to sell 50 radio stations
Variety, CA - Jul 31, 2008
Affiliate revenue rose 5% on rate increases and subscriber growth at Showtime. Moonves said the pay network, whose original programming has taken flight, ...
Sale of Sundance Channel Lifts CBS in Quarter New York Times
CBS posts higher profit on gain but cuts outlook guardian.co.uk
all 177 news articles


CBS reports slim profit growth in 2Q
The Associated Press - Jul 31, 2008
The company's billboard unit, international syndication sales and affiliate revenue also posted gains in revenue. Radio, long the sick-man of the company, ...


Adweek

Comcast Suffers Q2 Ad Revenue Slump
Adweek, NY - Jul 31, 2008
... posting $366 million in revenue, a 10 percent increase from $334 million a year ago, reflecting higher ratings and increased affiliate revenue. ...


The Walt Disney Company Reports Increased Third Quarter Earnings
MarketWatch - Jul 30, 2008
The increase in affiliate revenue was primarily due to contractual rate increases, subscriber growth, and increased recognition of previously deferred ...


Second Issue of FeedFront Magazine Now Available
AffiliateTip.com, NJ - Aug 5, 2008
Also, there are articles on conference networking, diversifying affiliate revenue, perils of white hat SEO, ten affiliate manager commandments, working with ...

Affiliate-Revenue - Google News

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