Programs are also called Associate Programs, Re-seller Programs,
Commission or Pay-Per-Sale, Pay-Per-Click and Click-Through Programs.
Joining an Affiliate Program is a great way
to start earning a sizeable income on the Internet without many of
the hassles that come with running your own business.
All you do is recommend someone else's
product or service, and get paid a "referral fee" or
"commission" for every sale that is made. You are assigned
a special "affiliate URL" that tracks all of the visitors you
send to their web site and all of the sales that you generate.
Who Should Join An Affiliate
People looking to start
an internet business who don't have a product or service of their own.
If you want to start an internet business, but don't have a product or
service of your own to sell, then promoting affiliate products to earn
referral fees can be a good alternative.....if you're prepared to
work really hard first! (Remember, when you sell your own
product you keep all of the profits; when you sell someone
else's product, you keep only a small portion of the profits)
owners looking to diversify their income. If you already have a
we site, with an established customer base and opt-in email list, then
you are in a perfect position to begin promoting affiliate products
and services. You simply find Affiliate Programs that offer
products or services that your target market will be interested in,
sign up, and then begin promoting them. Developing another
product or service of your own takes time, money and resources that
you simply may not have right now. So why not take advantage
of existing products and earn referral fees by recommending them
to your current customer base?
e-Business owners who
have an established Affiliate Program of their own. Many
businesses with Affiliate Programs mistakenly think that because they
have their own Affiliate Program, they shouldn't promote affiliate
products to their customers and subscribers. They are two
completely separate things! Don't make the costly mistake of
denying yourself this powerful source of extra income. With your
own increased customer base (through affiliate referrals) you have even
more reasons to get started promoting affiliate products and
Different Affiliate Program Models Work
There are basically four ways that
Affiliate Programs are set up to compensate you, as an affiliate.
- Pay-per-Click Programs:
With a pay-per-click program, you are paid for each person who clicks
through your affiliate link (ie. affiliate banner, text link,
etc...) to the Affiliate Program's website. Typical fees paid
per visitor who clicks through range from $0.05 to $1.00 depending on
the product type and profit margin.
a pay-per-lead program, you are paid for each "lead" that
you send them. For example, you might post a form on your web
site and be paid each time a visitor fills it out. The form
could be anything - a request for more information about the affiliate
product or service, a request for a quote, a free trial offer, or a
request for free information.
- Pay-per-impression programs:
With a pay-per-impression program, you will be paid every time the
affiliate link or banner is displayed to someone visiting your web
site. Typically payment runs at a couple of cents per visitor
and is calculated per 1,000 impressions.
- Pay-per-sale Programs:
is by far the most popular type of Affiliate Program. With a
pay-per-sale program, you are paid a percentage of the profits on
every sale made to someone you refer.
Why Two-Tier Affiliate
Programs Are The Way to Go
Another decision that you'll need to make
when looking for Affiliate Programs to join is whether or not you're
interested in a "two tiered" program.
With a single-tier Affiliate Program, you
are paid a commission for any sale that you refer.......but that's
it. With a two-tier Affiliate Program, you are paid a small
percentage of any sales generated by affiliates that you recruit to join
their program (i.e. you are paid a small percentage of the sales
generated by your "sub-affiliates").
Joining two-tier programs is definitely
recommended wherever possible, because once you've saturated your market
with the affiliate product or service, you can then promote the actual
Affiliate Program to them.
You can say something like, "I've
made X amount of money in this excellent program promoting this really
great product, and I think it might be a great opportunity for you
too!" When your customers and subscribers read your email
or article promoting the Affiliate Program, many of them will decide that
it sounds like an excellent opportunity and decide to join too.
Many of the new affiliates that you recruit
will then promote the affiliate product to their customer and
subscriber base..... and you'll earn extremely easy extra income by
getting a small percentage of all the sales they refer!
You Get Paid
There a few
different ways that Affiliate Programs compensate their affiliates.....
will pay in credit towards the merchandise or services they offer (not
many do this though). The rest usually pay in cash (more
specifically, a check is mailed to you each month).
companies have a "minimum payout" balance. For example,
you might have to earn a minimum of $100 in referral fees (or whatever
amount they choose) before they will issue you a cheque. Other
companies will pay you no matter how little you earn in a month.
be careful to read the Affiliate Agreement when you sign up for a
particular program. You don't want to do business with a company
that has some really high pay out where you have to accumulate hundreds of
dollars in sales before they will issue you the first cheque.