AFFILIATIONAFFILIATION

AffiliationAffiliation

The affiliation allows other webmasters The affiliation allows other webmasters (affiliates) to promote your website(s). (affiliates) to promote your website(s). one of the most powerful ways to one of the most powerful ways to increase the profits of products in a site increase the profits of products in a site is to introduce an Affiliate Program. is to introduce an Affiliate Program. Using with this affiliate program we can Using with this affiliate program we can improve the search engine rankings due improve the search engine rankings due to link popularity and generate traffic to link popularity and generate traffic through the actual link sites. through the actual link sites.

Become An Affiliate Become An Affiliate

You promote other companies websites/products and You promote other companies websites/products and get paid commission based on sales or leads you get paid commission based on sales or leads you generate. generate.

What Is An Affiliate Program? What Is An Affiliate Program?

An affiliate program allows companies to advertise on An affiliate program allows companies to advertise on websites and places which aren't their own. The websites and places which aren't their own. The company promoting is called the 'Merchant', as the company promoting is called the 'Merchant', as the promoter you are called the 'Affiliate'. The affiliate promoter you are called the 'Affiliate'. The affiliate program is simply the system which brings the two program is simply the system which brings the two together.together.

How it WorksHow it Works

1) You join an affiliate company. 1) You join an affiliate company. 2) They list companies which are available 2) They list companies which are available for you to promote for you to promote 3) You choose which companies you want to 3) You choose which companies you want to promote promote 4) They provide banners/text links which you 4) They provide banners/text links which you insert on your own website or promote via insert on your own website or promote via other methods IE Pay-per-click, forums etc other methods IE Pay-per-click, forums etc 5) You then get paid commissions depending 5) You then get paid commissions depending on the advertisers terms (E.G 10% of every on the advertisers terms (E.G 10% of every sale made through your banners) sale made through your banners)

The most basic affiliate The most basic affiliate programs are divided into 3 programs are divided into 3

categories :categories : -Pay Per PerformancePay Per Performance- Pay Per ClickPay Per Click- Residual income from affiliate - Residual income from affiliate programs through marketing.programs through marketing.

Pay Per PerformancePay Per Performance

Pay Per Performance (PPP) are the Pay Per Performance (PPP) are the most frequently used by large affiliate companies most frequently used by large affiliate companies to make money on the net of their online to make money on the net of their online businesses. Companies need to pay only when an businesses. Companies need to pay only when an affiliate referral translates into action. Action may affiliate referral translates into action. Action may be a purchase or a leads to a purchase . The be a purchase or a leads to a purchase . The affiliates will spend their own money to promote affiliates will spend their own money to promote related products, This save a lot of money for the related products, This save a lot of money for the company. PPP affiliate programs can be classified company. PPP affiliate programs can be classified into 2 sub-categories:into 2 sub-categories:

- Payment for Sale - Payment for Sale - Payment To Lead - Payment To Lead

- Payment for Sale - Payment for Sale The company pays money online The company pays money online

to the affiliate only when a visitor sent to the affiliate only when a visitor sent makes a purchase.makes a purchase.

- Payment To Lead - Payment To Lead Companies with these programs pay Companies with these programs pay their affiliates based on the number of their affiliates based on the number of visitors they refer who sign up as visitors they refer who sign up as leadsleads. This simply means the visitor . This simply means the visitor fills out some requested information at fills out some requested information at the merchant site, which the merchant the merchant site, which the merchant site may use as a sales lead or sell to site may use as a sales lead or sell to another company as a sales lead. another company as a sales lead.

Pay per ClickPay per Click

In these programs, the merchant site In these programs, the merchant site pays the affiliate based on the pays the affiliate based on the number of visitors who click on the number of visitors who click on the link to come to the merchant's site. link to come to the merchant's site. They don't have to buy anything, and They don't have to buy anything, and it doesn't matter to the affiliate what it doesn't matter to the affiliate what a visitor does once he gets to the a visitor does once he gets to the merchant's site. merchant's site.

There are a number of other There are a number of other arrangements as well. Basically, a arrangements as well. Basically, a company could set up an affiliate company could set up an affiliate program based on any action that program based on any action that would benefit them, and then pay would benefit them, and then pay their affiliates based on the number their affiliates based on the number of customers the affiliates send them of customers the affiliates send them who perform that action. who perform that action.

There are a couple of very popular There are a couple of very popular variations on these basic payment variations on these basic payment plans:plans:

Two-tier programs:Two-tier programs:Residual Programs:Residual Programs:

Two-tier programs:Two-tier programs:These affiliate programs have a structure These affiliate programs have a structure

similar to similar to multilevel marketingmultilevel marketing organizations (also organizations (also known as "network marketing") such as Amway or known as "network marketing") such as Amway or Avon, which profit through commission sales and Avon, which profit through commission sales and sales recruitment. In addition to receiving sales recruitment. In addition to receiving commissions based on sales, clicks or leads stemming commissions based on sales, clicks or leads stemming from their own site, affiliates in these programs also from their own site, affiliates in these programs also receive a commission based on the activity of affiliate receive a commission based on the activity of affiliate sites they refer to the merchant site. sites they refer to the merchant site.

Residual Programs:Residual Programs: Affiliates in these programs can keep Affiliates in these programs can keep

making money off a visitor they send to the site making money off a visitor they send to the site if the visitor continues to purchase goods or if the visitor continues to purchase goods or services from the merchant site. Many online services from the merchant site. Many online merchants who receive regular payments from merchants who receive regular payments from their customers (such as monthly service fees) their customers (such as monthly service fees) run this sort of affiliate programrun this sort of affiliate program. .

Example:Example:

You'veYou've got a website about the best got a website about the best cookbooks from around the worldcookbooks from around the world

YourYour site gets lots of traffic site gets lots of traffic YouYou join the Amazon.com Affiliate join the Amazon.com Affiliate

ProgramProgram YouYou place a link on your site to place a link on your site to

Amazon.com's cookbook sectionAmazon.com's cookbook section

I go to your site and click your I go to your site and click your Amazon.com affiliate linkAmazon.com affiliate link

I'm immediately sent to the I'm immediately sent to the Amazon.com cookbook sectionAmazon.com cookbook section

I buy cookbooks at Amazon.comI buy cookbooks at Amazon.com YouYou get paid a commission from get paid a commission from

Amazon.com!Amazon.com!

Amazon.com attracts affiliates to have Amazon.com attracts affiliates to have links of Amazon in their site, or links of Amazon in their site, or Amazon. COM in general, by promising Amazon. COM in general, by promising them a percentage of the profits if them a percentage of the profits if someone clicks on the link and then someone clicks on the link and then purchases books or other items. purchases books or other items.

The affiliate helps make the sale, but The affiliate helps make the sale, but Amazon. COM does everything else: Amazon. COM does everything else: They take the order, collect the money They take the order, collect the money and ship the book to the customer. and ship the book to the customer.

With over 500,000 affiliate Web sites With over 500,000 affiliate Web sites now participating, Amazon.com's now participating, Amazon.com's program is a resounding success. program is a resounding success.

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