Making Money with Affiliate Programs ? Part I

If you have a website and you are not involved in any of the thousands of affiliate programs available on the Internet, you are loosing great opportunities to make some extra income. As in the case of some top affiliate marketers this extra income might even transform into thousands of dollars.

Affiliate program is one of the most effective methods of producing sales second only to direct mail. According to Forrester Research, a marketing research company, in this year 21% of all online sales will be generated from affiliate sites promoting affiliate products.

If you do your homework right, you too can earn handsomely from the correct use of affiliate programs.

What is an affiliate program?

The concept of affiliate program is based on the age-old business practice of referral service. This is quite common in many industries. An attorney, for example, gets a certain percent of commission if he refers a client to another lawyer.

Back in 1996 Amazon.com started the first widespread use of referral service on the Internet. If a client comes to Amazon.com and buy a product using a link provided by Amazon, from a website which signed affiliate partnership agreement, that site receives 10 to 15% commission from the sale. The Amazon Affiliate Program became so successful that it prompted others to follow the suit. Today, affiliate programs became ubiquitous on the Internet making them one of the primary methods of online marketing of products and services.

Affiliate Program can be defined as Internet marketing system where a company allows and helps third party websites, called affiliates to post link and refer clients in return for a predetermined flat-fee or percentage-based commission.

Benefits of affiliate programs
Affiliate Programs became so popular because as a partnership it's a win-win situation for both the program owner and the affiliates.

Benefits for program owners include:

Increase Sales
The primary reason for most of the companies to adopt an affiliate program is the possibility of boosting sales. In fact, proper implementation of a quality affiliate program is capable of increasing sales dramatically.

Free promotion
A successful affiliate program can easily become the largest traffic generator for the company website. Many websites receive major portion of their visitors from their affiliate links. To find suitable websites with required content in order to run a banner or link campaign is time consuming and require large resources; affiliate programs in comparison can resolve this issue often with a far smaller investment.

Increase search engine ranking
Search engines, Google in particular, calculate link popularity as one of the main factors in their ranking algorithm. Backward links from affiliate sites certainly help improving this.

Branding
Thanks to its affiliate program Amazon.com banner links can be seen on numerous websites. Popularity of Amazon.com among the newcomers to Internet proves that Amazon.com was successful in creating its online brand name. No doubt, omnipresent visibility of their logo on the affiliate sites definitely had a huge impact on the brand recognition of the Amazon. Offline companies had to spend billions of dollars of advertisement money to get similar results!

How about the affiliates? What are the benefits they get from an affiliate relationship?

No product or service to carry
Online business with your own product or service might be rewarding, but it requires substantial investment from your part. With carefully chosen affiliate programs you can have your online business without the requirement of having your own products.

The investment is low as all you need is a website.

No need to have a merchant account
Since you don't carry your own products or services you do not have to go through the hassle of having a merchant account to cater your clients. Your affiliate program owner will do everything. All you have to do is supply clients through your designated link.

Possibility of residual income
Many programs pay you a commission from the sales made to the customers generated from affiliates, who have signed up as an affiliate following your link. This kind of affiliate system is called 2-tier system.

Visitor tracking system allows affiliate programs to pay you a commission when same visitor from your website makes repeat purchase.

Some affiliate programs that promote monthly or yearly subscription services pay a commission each month as long as customer referred by you stays subscribed.

Complement you website with added products and services If your site is dedicated to certain products or services, there must be other stuffs that go well together with your own products. It's a good idea to seek out viable affiliate products of these items and promote through your site. Your visitors will love this and this will help building loyalty among your visitors.

Have new contents for your site
many affiliate programs supply you with valuable marketing materials. Some of these materials can be nice addition to your site content bringing further value to your website.

Various Affiliate programs

There are two ways of running an affiliate program: The company owns and handles the program itself, using certain software.

The company uses third party administered affiliate programs. The reasons why many companies prefer to hand over management of their affiliate programs include technical aspects, cost factor and human factors.

? Companies do not have to spend money on developing, running and updating the software.

? Proven technology allows companies to concentrate on their job of selling their products and services.

? Many prospective affiliates prefer third party managed programs, because they rightfully ponder, in this case the program owners have less chance to cheat their affiliates.

Find below a list of some leading third party affiliate program administrators:

http://www.befree.com
http://www.linkshare.com
http://www.cj.com
http://www.clickbank.com

However, this does not mean that you should avoid company run affiliate programs. On the contrary, some of the most successful and best affiliate programs are run by the owners.

If you find an affiliate program that suits your requirement and you feel that the company is a reputable one, by any means you should give it a try!

Nowshade Kabir is the founder, primary developer and present CEO of Rusbiz.com. A Ph. D. in Information Technology, he has wide experience in Business Consulting, International Trade and Web Marketing. Rusbiz is a Global B2B Emarketplace with solutions to start and run online business. You can contact him at mailto:nowshade[at]rusbiz.com, http://ezine.rusbiz.com , http://www.rusbiz.com , http://ezine.rusbiz.com/newsletters/news letter21.htm

http://store.xiiiv.com/rss
In The News:

Levelling the playing field  iGaming Business
How Forex Affiliate CPA Works  FXDailyReport.com
Natuzzi: 3Q Earnings Snapshot  Yahoo Canada Finance

Looking for Success as an Online Affiliate? Its All in the Numbers

If you have been a home based business entrepreneur for... Read More

A Unique Opportunity For Affiliate Recruiters

If you're a webmaster, web publisher, or web merchant, chances... Read More

How To Use Articles To Build Your Affiliate Program

Articles are the perfect promotional tool for your affiliates -... Read More

How to Build a Huge Opt-In List as an Affiliate

One of the biggest mistakes I see affiliates making everyday... Read More

Focus on Success ? How To Make Affiliates Work For You

How do we go about getting success with affiliate programs... Read More

9 Steps to Success in Affiliate Marketing

1.Join an Affiliate Program: Join programs that interest you personally.... Read More

Secrets of Super Affiliates

Have you ever wondered why it is very difficult for... Read More

Free traffic vs. Extra Revenue - Earning From PPC Search Engines

What are the Search Engines?A Search Engine is special database-driven... Read More

Affiliate Programs : Golden Opportunity or Waste of Time?

Now that the idea of doing business over the internet... Read More

Build A High Profit Business With Affiliate Programs

QUESTION: I am considering starting an ebusiness using affiliate programs,... Read More

5 Tips If You Want To Be A Reseller

If you are planning to be a reseller for a... Read More

Affiliate Marketing Tips

If there really is a big secret at all, it... Read More

Watch Out For Traffic Leaks

When promoting any affiliate program one thing that you, as... Read More

High Earning Affiliate Is It Possible?

Affiliate Program have exploded on the internet. Thousand of people... Read More

Generate More Sales in ANY Affiliate Program ? Part Five

Affiliates make money in pretty much two ways, firstly by... Read More

Pros and Cons of Third Party Online Affiliate Networks

Online affiliate marketing has taken the internet by storm and... Read More

12 Tips On Selecting An Affiliate Program

People sign up with affiliate programs everyday, looking to expand... Read More

One Little-Known Secret to Wealth the Gurus Never Told You About!

When I started my internet marketing career, I knew that... Read More

Affiliate Program As It Should Be

Every off- or online business has a target of growing... Read More

Free Keyword Research Tools Are Not As Effective as Wordtracker

One of the most unanswered questions online today is, how... Read More

How To Boost Your Affiliate Sales With Free Articles

Free Articles continue to be one of the most effectiveways... Read More

Five Common Mistakes Affiliate Marketers Make

Affiliate Marketing is one of the most effective and powerful... Read More

Promoting Affiliate Programs through Personal Recommendations

Publishing articles online is a highly effective way to increase... Read More

:: How To Succeed With An Affiliate Program

Affiliate Programs have exploded on the internet. Thousand of people... Read More

How Much do YOU Charge Per Hour? Avoid the Question by Setting up Passive Income Streams

If you work with clients, at some point in your... Read More

http://store.xiiiv.com/rss