Affiliate programs are the same as a performance-based marketing program. It is an online referral system that pays a sales commission to you for helping to sell the products of another website. In other words, you place a link on your site that a customer can click on to get to another site you don’t mind advertising.
The links can be single-sided links that appear on a website or they can be cross-links. In the cross-link set-up, a link to your site is placed on a website for a business that has placed their link on yours.
There are affiliate service providers specializing in setting up affiliates. The affiliate program would provide you with the information you need to set up the ad on your site. When a customer clicks on the link, they are taken to the originating site. The affiliate program tracks the referrals, sales, and commissions earned.
There are different ways to define a transaction: pay-per-click or pay-per-action. Pay-per-click pays a commission based on the number of times a customer clicks on the ad link, regardless of whether a sale is made or not. With pay-per-action, the qualifying transaction on which the commission is paid must be defined. It could be a closed sale, a request for information, a new customer, and so on.
Following are some of the more popular and reliable affiliate service providers.
- JVZoo at www.jvzoo.com
- ClickBank at www.clickbank.com
- Commission Junction at www.cj.com
- LinkShare at www.linkshare.com
An affiliate arrangement should be viewed for exactly what it is: a partnership. You are allowing others to place ads on your site, and in return, your ads will appear on other websites. But you don’t want to place your link just anywhere. Affiliate Internet marketing has some basic principles to keep in mind if you want to generate as much money as possible.
First, you need to find the right partners. If you sell Bibles, you would not want ads on your site that promote lingerie. Second, if you need to establish a true link campaign strategy, you must understand the market you intend to reach and then do the research to find out how your intended market shops the Internet. There are millions of ads placed on the wrong sites; as a result, the customers fail to click through and income is never generated.