Affiliate Programs Explained

More people are discovering the power of affiliate marketing to supplement or even replace their existing income. But there are even more people who would like to have a slice of this exciting world. But, are unsure exactly what an affiliate program is or what it consists of.

When discussing an affiliate program, it helps to compare it to a traditional networking company. Where a network of salespeople and distributors are recruited to sell their products to all corners of the globe.

Example, instead of a company selling directly to their customers it sells products through a series of distributors and salespeople. In turn, the members of this distribution and sales network enjoy a very good living promoting other peoples products.

In essence, the affiliate programs found on the internet are distribution and sales efforts taken to the online world. The affiliate website takes the place of the distributor and sales network. Affiliates get paid by the seller when a sale is made. There are affiliate programs where physical products have to be shipped. But there are also many other affiliate programs where software or informational products have to be downloaded.

It is easy to understand why this arrangement is so popular. From the point of view of both the merchant and the owner of the web site. The merchant benefits from increased sales and at the same time, does not have to pay for additional advertising. He can expand his network without the need for additional and sometimes expensive advertising. The affiliate on the other hand may not have a product of his own to make money from. Selling someone else’s product for a share of the selling price gives him the opportunity to start his own business.

Requires effort to promote the product you are selling. There are many ways to promote affiliate offers. An example would be if the affiliate already has a website and a link
added directly to the merchant site. It costs nothing to set up and is very easy to do with a little cut and paste.

All good affiliate programs will have a back office with tools to use. Its always advisable to protect your affiliate links and therefore your commissions. Always disguise links with bitly.com to avoid use by anyone else. You can find a good program to use to prevent theft of your commission at http://www.1st-4-income.com/stopcommissiontheft.html.

Commissions paid by merchants vary. You can expect anything up to 70% or even more with some affiliate programs. But these will mainly be software downloads. If you go to Clickbank you will find thousands of such programs to promote. Its easy to see why the promotion of software programs is a great way to make money online. At the other end of the scale though some affiliate programs pay a pittance. Commissions as low as 1.5% in some cases. You will have to ask yourself if these will be worth the effort.

Affiliate programs are very popular on the internet. If you don’t have your own product and want to have a shot at earning some money on the internet. Then affiliate marketing is the way to go. So if you’re not already familiar with the concept of affiliate marketing, why not check it out?

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