What are Affiliate Programs
Before inverting the time and money to create an
Affiliate Marketing website it would be good to first define some of
the terms used.
By definition, an affiliate is someone whose site
is being used by companies to serve as its search sites for
potential leads or customers. An affiliate is a small website owner who
develops linkages and advertises this with blogs, banners, through
Ezines and in his website to gain exposure and potential leads for a
product that he sgreed to advertise. In return the merchant then pays
the website owner a commission for the referral.
The merchant on the other hand are companies with
products or services they wish to sell and agree
to share revenues with the affiliate.
This strategy can help augment the companies own
sales program and increass exposure of the product to potential buyers.
The three basic affiliate programs are:
per click - the affiliate
receives compensation/commission referring a customer to
a merchant's website through links on the affiliates website. The
merchant pays an agreed amount for each person who enters thier website
by this referal. The Affiliate recieves payment evenif the referred
person does not buy. The amount paid is usually very small.
per sale - the merchant pays the
affiliate only when the referral ends in a purchase. The amount paid is
often much higher that with Pay Per Click. But the affiliate only gets
paid when a sale is made. The amount may be a fixed amount or a
percentage of the sale.
- Pay per Lead - not all merchant
practices this program although those who are also pays for a quality
An affiliate marketer's website provides the
content, services, information and entertainment as required to attract
the potential customer. The merchant handles the inventory, delivery
and other services that are normally practiced by sales and marketing
Usually, affiliate programs ensure that the affiliate will be able to
track the customers the affiliate have referred and the percentage of
those that actually lead to sales. Conversion rates are shown which
provides transparency in transactions. The marketer may
create thier own tracking system or they may employ a third party
For an affiliate to be successful, his site must
generate very heavy traffic. It is not unusual for a site to be visited
a couple of a hundred times before a sale is closed.
The need for high traffic often requires that the
affiliate marketer spend a considerable amount of time to create the
nessessary traffic. You will find affiliate forums and blogs to be a
great source of information on how to increase traffic as well as help
you build a network of other marketers than can help.
After you have read through the articles on this site you will find
many other sources of information in the Marketing
Tips section of our Affiliate
Marketer Guide Directory