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
ransaction. 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.
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.
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?
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
Editor@netbizreview.com
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