Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Understanding Affiliate Programs > NetSparsh - Viral Content you Love & Share

Understanding Affiliate Programs

Affiliate programs are commonly misunderstood, in order to understand affiliate programs lets start with terminology. For clarification purposes, an affiliate is defined as any "referrer" or website that promotes a product in an effort to earn revenue. A merchant is defined as someone who owns a product and is sharing revenues with an affiliate based on the affiliate's performance. Affiliate programs can drive targeted traffic to your website.

There are 3 basic affiliate programs, though only the first two are commonly used.

Pay Per Click - this is when an affiliate is compensated for sending traffic to the merchant. (AdSense is an example of PPC affiliate program)

Pay Per Sale - this is when the affiliate is compensated by the merchant if the referral generates a sale or purchase.

Pay Per Lead - this is when the merchant agrees to pay for a qualified (or sometimes unqualified lead), which is very uncommon because it is subjective and up to the merchant.

Affiliate websites tend to provide information, entertainment, and content services to their customers. The online merchants sell products, goods and services online. These are programs permitting affiliates to earn money based on the visitors to your site who click through to another's website. Some pay a token amount for the click through and others provide a percentage of sales when a visitor "clicks through" to your site and buys a product or service on the other party's site. This could represent a value added service to your visitors.

Affiliate programs allow you to pay and track incentives from other websites that send web surfers, leads or paying customers to your website. Commissions based on purchases made by traffic sent from the referring website can be paid. Besides a commission, an affiliate can receive a flat fee, or other incentives for all valid transactions it refers that generate a sale or lead.

Be careful that the affiliate's web page is not cluttered with banner ads that may crowd out your link, or that be annoying to customers. Affiliate programs enable affiliates to leverage their traffic and customer base in order to profit from e-commerce while merchants benefit from increased exposure and sales.

Commonly traffic to merchant sites is measured and affiliates can clearly see conversion rates. Meaning, they track the percentage of people they are referring, and how much of it results in earned revenue. If the affiliate finds a very low conversion, they will find a better way to monetize that traffic, quite possibly with a competing merchant product.

In order to be a successful affiliate, the affiliate site needs to either have tons of traffic or target a specific audience, frequently one untapped by the merchant. It has been my experience, the closer the affiliate site content resembles the merchant products, the higher the likelihood of a good conversion rate.

Once you are committed to the idea of affiliates, the next step is to determine the kind of tracking system you are going to use. Sales can be tracked by HTML code, which is placed in a shopping cart or on the 'order confirmation'/'thank you' page, and cookies, which are created after the customers click on a banner ad. Cookie killers have been a problem for the affiliate industry. Software vendors have an advantage over other merchants in that new technologies allow software developers to better control compensation. Vendors can 'wrap' their software insuring that their affiliates are compensated for referrals, even if the customer downloads a trial version prior to purchasing. Buy now buttons in the software have affiliate ids imbedded in the download. Combined tracking systems have more success than those that rely on a single tracking technology.

In order to develop a successful affiliate network, merchants must realize that affiliates spend ad dollars on site, and product promotion. If the affiliate is not compensated fairly they will not remain in the merchants network. The bottom line is that affiliate relationships are partnerships, when both sides feel the situation is fair and equitable the relationship will be a success.

About the Author:

Sharon Housley manages marketing for NotePage, Inc. http://www.notepage.net a company specializing in alphanumeric paging, SMS and wireless messaging software solutions. Other sites by Sharon can be found at http://www.feedforall.com, http://www.softwaremarketingresource.com and http://www.small-business-software.net

sharon@notepage.net

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

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

The Verge

Apple's plans to cut apps out of its affiliate program may shut down independent iOS news sites
The Verge
The longstanding affiliate marketing service was a way to receive revenue from Apple that the company took out of its standard 30 percent iTunes and App Store cut, and that revenue provided a much-needed source of revenue for independent news sites and ...
Apple kills app affiliate commissions, imperiling small publishersVentureBeat
Apple shuts App Store affiliate program, imperiling recommendation sitesArs Technica
Apple is killing its App Store affiliate programMashable
iMore (press release) (blog) -Forbes -Mobile Marketer -Touch Arcade
all 116 news articles »

Wall Street Journal

Viacom's Revenue Falls on Slump in Ad Sales, Filmed Entertainment
Wall Street Journal
However, Viacom executives predicted that domestic affiliate revenue would return to growth in the September quarter for the first time in more than a year, driven by rate increases and the growth of streaming pay-TV bundles. They also expect domestic ...
Viacom reports revenue below estimates on weak advertising salesCNBC
'A Quiet Place' Helps Boost “Revitalized” Paramount Pictures As Viacom Posts 4% Revenue DropDeadline
Viacom Reports Lackluster US Ad Revenues, Affiliate FeesMediaPost Communications
Reuters -Zacks
all 116 news articles »

Awful Announcing

Disney sees Q3 year-over-year earnings growth, thanks partly to ESPN's affiliate revenue growth and lower severance ...
Awful Announcing
The increase at ESPN was due to affiliate revenue growth and the comparison to severance and contract termination costs incurred in the prior-year quarter, partially offset by higher programming costs and a decrease in advertising revenue. Affiliate ...
Disney earnings miss, but studio revenue jumps 20% year over yearCNBC
Disney Q3 earnings miss as streaming costs mountKidscreen
Disney's TV Ad Revenues Offset Viewer Declines During Q3 EarningsAList
Orlando Business Journal -Benzinga -24/7 Wall St. -Zacks
all 361 news articles »

Slate Magazine

Will the Action Network make a billion on sports betting or be a total bust?
Slate Magazine
“You can see why this was an attractive business model, coming from the newspaper industry,” he said, noting that VSiN intends to make affiliate revenue a prominent part of its business model. Adam Small, an entrepreneur who has worked in the affiliate ...


Financial Post

TuGo Launches Revenue-Generating Affiliate Program for Unlicensed Individuals and Organizations
Financial Post
RICHMOND, British Columbia — TuGo, one of Canada's top travel insurance providers, is pleased to announce the launch of TuGo's Affiliate Program. The Program is ideal for individuals, businesses and organizations looking to enhance their product and ...


'Reporting is a struggle': To grow commerce revenue, publishers have spend time, money to manage the data
Digiday
Nag and his team have spent the past three months doing just for the publisher's top-three affiliate partners, a small fraction of the many it works with. As publishers try to grow revenue from e-commerce, few probably anticipate the headache involved ...


Charlotte Observer

Red Sox Affiliate Exits Rhode Island for New Massachusetts Park (1)
Bloomberg BNA
The project, according to City Manager Edward M. Augustus Jr., will be self-supporting: $70.6 million in construction costs will be derived from revenue generated within a new tax district that includes the ballpark and complementary developments, and ...
Get ready to cheer for the WoosoxCommonWealth magazine
It's official: PawSox to move to Worcester - The Boston GlobeThe Boston Globe
Officials Announce the PawSox Are Moving to WorcesterNECN
MassLive.com -Over The Monster -AP News
all 331 news articles »

Reuters

CORRECTED-UPDATE 1-Viacom reports revenue below estimates on weak advertising sales
Reuters
(Corrects affiliate revenue to $1.15 billion from $978 million in second paragraph). Aug 9 (Reuters) - Viacom Inc reported quarterly revenue below Wall Street estimates on Thursday, as domestic advertising sales fell and the media company collected ...

and more »

Forbes

3 Ways Small Businesses Can Effortlessly Increase Their Bottom Line
Forbes
Last year my business brought in nearly $50,000 in extra revenue from merely leveraging affiliate links within our content strategy. Do An Audit Of Your Recurring Monthly Expenses. As a small business, we all have essential expenses like salaries, rent ...


Nasdaq

Disney (DIS) Misses on Q3 Earnings & Revenues, Shares Fall
Nasdaq
Finally, Consumer Products & Interactive Media (6.6% of revenues) revenues decreased 7.7% year over year to $1 billion. Segment operating income dipped 10.5% to $324 million due to lower comparable retail store sales and reduced income from licensing ...
Disney Earnings Shaved by Rising Costs24/7 Wall St.
Walt Disney Company (The) (DIS) Q3 2018 Earnings Conference Call TranscriptMotley Fool
Disney's Star Wars Hotel Episode 1: A New ConceptOrlando Business Journal
Seeking Alpha -Motley Fool -24/7 Wall St. -Zacks
all 538 news articles »
Google News

Marketing A Single Affiliate Program is the First Key to Success

There are a lot of affiliate marketing programs out there... Read More

How To Really Make Money With Datafeed Merchants

I am not going to describe what a product feed... Read More

Commission Junction: the Perfect Affiliate Resource for Niche Markets

There are many affiliate programs you can go to to... Read More

Internet Affiliate Marketing 101 - Its All About Relationships

So you've found the perfect affiliate program, you've signed up... Read More

Why Building Affiliate Websites Are the Way to Go

It seems that everybody is into making money online these... Read More

Super Affiliate Strategies Part 3

In our previous Super Affiliate Strategies articles, we went over... Read More

How to Become a Super-Affiliate

Did you begin your affiliate marketing business like this? You... Read More

Vital Things To Check At Any Affiliate Program

Affiliate programs are now one of the most popular ways... Read More

Your Affiliate Business and Taxes

Starting a home-based business on the Internet is easy you... Read More

Revealed The Myth of Making Money Through Affiliate Marketing

Many people enter into the affiliate marketing arena with the... Read More

Affiliate Program Mastery: Learn How To Build Internet Capital Goods for Free

As I mention in almost all of my articles, 97%... Read More

How to Make Money with Affiliate Business Programs

There are thousands of affiliate business programs on the internet... Read More

Affiliate Marketing Step... Set Yourself Apart from the Rest.

I'm sure you've heard the expression, "This is where you... Read More

How I Started My Own Work At Home Internet Business With Very Little Investment!

Have you always wanted to work at home? Have your... Read More

Internet Tip of the Week: Reality Check

Every time you turn around it seems you see another... Read More

10 Sizzling Tips For Affiliates

1. Create an infopacked mini site. Build your mini site... Read More

Why Do Many People Fail in Affiliate Marketing!

Affiliate marketing has been around on the Web for quite... Read More

Setting Up Your Own Affiliate Program (part one)

Can you start your own affiliate program without hassle?This is... Read More

Affiliate Marketing Tips

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

How to Grow an Affiliate Marketing Business

The biggest failure in affiliate marketing is not collecting prospects'... Read More

Is It Possible To Make A Living Being An Affiliate Marketer?

It may sound cliché but it is worth repeating. Affiliate... Read More

Want to Increase Your Affiliate Commissions?

Do you participate in chat rooms and message boards related... Read More

Are You Wasting Your Time In Pursuit Of Money?

There was a time when I had no idea how... Read More

Googles Changed The Rules Again So Now What?

Some tips for Affiliate MarketersSo Google has changed its policies... Read More

Online Business Entrepreneur? What You Must Know About Your Affiliates

As an on-line business entrepreneur it is your job to... Read More

http://store.xiiiv.com/rss