WHAT
IS AN AFFILIATE PROGRAM?
Simply put, an
Affiliate Program on the Net is a partnership with an online merchant
(a Web site that sells goods or services). The webmaster or web site owner
places links in the form of buttons, banners, or text links to the merchant's
site. A visitor comes to webmaster's site. If the visitor clicks on one
of the Affiliate Program links the webmaster have put on their site, that
visitor goes to the merchant's site. If that visitor buys something on
the merchant's site, the webmaster gets a commission.
There are different types
of commissions available depending on the type of program. The main methods
are:
-
pay-per-click
(or other action) programs,
-
pay-per-lead
programs,
-
pay-per-sale
programs,
-
or a combination
of any of the above.
PAY-PER-CLICK
A good example of a pay-per-click
(or other action) program is GoTo Search
run/tracked through
beFree.
GoTo pays webmasters to put a search box on their web site... for each
search a visitor makes using the search box they pay $.02/search.
PAY-PER-LEAD
A good example of a pay-per-lead
program is Club
Mom
run/tracked through
beFree.
They pay $1.00 for each unique new registration to their site originating
from a webmaster's site.
PAY-PER-SALE
A good example of a pay-per-sale
program is Monica's
Flowers and Gifts
run/tracked through Commission
Junction
.
They pay 10% commission on any goods/products purchased on their site from
visitors coming through the webmaster's affiliate link(s).
COMBINATION
A good example of a combination
program is Commission
Junction
who pay 2 ways... They pay $2.00/unique referral who signs up, and 20%
of sales.
WHAT
IT IS NOT
Don't be fooled by all the
hype. An Affiliate Program is NOT easy money except under the ultimate
conditions. In a perfect world you already have tons of traffic to your
site, you've found a program that pays you well, the marketing materials
to market the program (buttons, banners, storefronts, etc.) are excellent
"pullers" generating tons of click-throughs and the conversion rates on
those click-throughs is well over 50%... Okay --- so we can dream --- can't
we?
In reality --- build trust
in your visitors by creating a good web site, build traffic by marketing
your site well, choose your affiliate programs well to ensure you can be
proud of what you are recommending to your visitors (try keeping it in
context with your content) ... and you will make money. Be sure to review
the other links to the WebPower
Affiliate section to gain the edge on generating a good income.
In particular visit the single-tier and 2-tier sections to familiarize
yourself with the different types of Affiliate Programs available in both
of these and the difference between them.