Mar 10, 2007
Affiliate Programs by Jack Doran
What Are Affiliate Programs?
Simply put, affiliate programs, also called associate programs, are arrangements in which an online merchant Web site pays affiliate Web sites a commission to send them traffic. These affiliate Web sites post links to the merchant site and are paid according to a particular agreement. This agreement is usually based on the number of people the affiliate sends to the merchant's site, or the number of people they send who buy something or perform some other action. Some arrangements pay according to the number of people who visit the page containing their merchant site's banner advertisement. Basically, if a link on an affiliate site brings the merchant site traffic or money, the merchant site pays the affiliate site according to their agreement. Recruiting affiliates is an excellent way to sell products online, but it can also be a cheap and effective marketing strategy.
There are at least three parties in an affiliate program transaction:
The customer
The affiliate site
The merchant site Payment
There are three basic types of affiliate program payment arrangements:
Pay-per-sale (also called cost-per-sale): Amazon.com's affiliate program is an example of a pay-per-sale arrangement. In this arrangement, the merchant site pays an affiliate when the affiliate sends them a customer who purchases something. Some merchant Web sites, like Amazon.com, pay the affiliate a percentage of the sale and others pay a fixed amount per sale.
Pay-per-click (cost-per-click): In these programs, the merchant site pays the affiliate based on the number of visitors who click on the link to come to the merchant's site. They don't have to buy anything, and it doesn't matter to the affiliate what a visitor does once he gets to the merchant's site.
Pay-per-lead (cost-per-lead): Companies with these programs pay their affiliates based on the number of visitors they refer who sign up as leads. This simply means the visitor fills out some requested information at the merchant site, which the merchant site may use as a sales lead or sell to another company as a sales lead.
How Are Affiliate Programs Administered?
Affiliate programs are pretty simple in concept, but a lot of behind-the-scenes work is necessary to make them work properly. In order for the affiliates to be compensated, someone needs to keep track of the actual activity surrounding the affiliate's link to the merchant site.
Depending on the arrangement, someone might need to determine:
the number of people who click on the merchant site's link on an affiliate site
the number of people who end up buying something or performing some other predetermined
action once the affiliate sends them to the merchant site.
the number of people who see the merchant site's banner link on an affiliate site
Affiliate Program Networks
Affiliate networks, or "affiliate brokers," act as mediators between affiliates and merchant Web sites with affiliate programs. They track all activity, arrange all payment, and help affiliates set up the necessary links on their Web site. Additionally, affiliate networks help recruit affiliates by including an online merchant's affiliate program in their directory. Different affiliate networks offer different extra features, but most have a help-center and a place affiliates and merchants can go to view reports of their traffic.
Affiliate programs work best when affiliates choose products, services and companies that match the content of their Web site and would interest their readers. If a content Web site chooses affiliate programs well, everybody involved in the process wins. The affiliate wins because it is able to sell products to its visitors without having to run an e-commerce business, the merchant site wins because the affiliate sends it customers it wouldn't get otherwise, the affiliate network wins because it gets a piece of the profit for setting everything up, and the Web surfer wins because the affiliate Web site directs her to products she would be interested in, which she can then purchase easily.
For more information visit softwarereviewblog.com
Simply put, affiliate programs, also called associate programs, are arrangements in which an online merchant Web site pays affiliate Web sites a commission to send them traffic. These affiliate Web sites post links to the merchant site and are paid according to a particular agreement. This agreement is usually based on the number of people the affiliate sends to the merchant's site, or the number of people they send who buy something or perform some other action. Some arrangements pay according to the number of people who visit the page containing their merchant site's banner advertisement. Basically, if a link on an affiliate site brings the merchant site traffic or money, the merchant site pays the affiliate site according to their agreement. Recruiting affiliates is an excellent way to sell products online, but it can also be a cheap and effective marketing strategy.
There are at least three parties in an affiliate program transaction:
The customer
The affiliate site
The merchant site Payment
There are three basic types of affiliate program payment arrangements:
Pay-per-sale (also called cost-per-sale): Amazon.com's affiliate program is an example of a pay-per-sale arrangement. In this arrangement, the merchant site pays an affiliate when the affiliate sends them a customer who purchases something. Some merchant Web sites, like Amazon.com, pay the affiliate a percentage of the sale and others pay a fixed amount per sale.
Pay-per-click (cost-per-click): In these programs, the merchant site pays the affiliate based on the number of visitors who click on the link to come to the merchant's site. They don't have to buy anything, and it doesn't matter to the affiliate what a visitor does once he gets to the merchant's site.
Pay-per-lead (cost-per-lead): Companies with these programs pay their affiliates based on the number of visitors they refer who sign up as leads. This simply means the visitor fills out some requested information at the merchant site, which the merchant site may use as a sales lead or sell to another company as a sales lead.
How Are Affiliate Programs Administered?
Affiliate programs are pretty simple in concept, but a lot of behind-the-scenes work is necessary to make them work properly. In order for the affiliates to be compensated, someone needs to keep track of the actual activity surrounding the affiliate's link to the merchant site.
Depending on the arrangement, someone might need to determine:
the number of people who click on the merchant site's link on an affiliate site
the number of people who end up buying something or performing some other predetermined
action once the affiliate sends them to the merchant site.
the number of people who see the merchant site's banner link on an affiliate site
Affiliate Program Networks
Affiliate networks, or "affiliate brokers," act as mediators between affiliates and merchant Web sites with affiliate programs. They track all activity, arrange all payment, and help affiliates set up the necessary links on their Web site. Additionally, affiliate networks help recruit affiliates by including an online merchant's affiliate program in their directory. Different affiliate networks offer different extra features, but most have a help-center and a place affiliates and merchants can go to view reports of their traffic.
Affiliate programs work best when affiliates choose products, services and companies that match the content of their Web site and would interest their readers. If a content Web site chooses affiliate programs well, everybody involved in the process wins. The affiliate wins because it is able to sell products to its visitors without having to run an e-commerce business, the merchant site wins because the affiliate sends it customers it wouldn't get otherwise, the affiliate network wins because it gets a piece of the profit for setting everything up, and the Web surfer wins because the affiliate Web site directs her to products she would be interested in, which she can then purchase easily.
For more information visit softwarereviewblog.com
# posted by pburin22 @ 8:03 PM 
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