Ways : How to earn by affiliate program?

Sunday, April 3, 2011

An affiliate program is a website promotional program in which people may refer customers to a company's product in return for a commission. There are 3 types of affiliate programs.

Pay Per Click - this is when an affiliate is paid for sending traffic to the merchant.
Pay Per Sale - this is when the affiliate is compensated for generating a sale or purchase.
Pay Per Lead - this is when the merchant agrees to pay for a qualified lead (a customer who has genuine interest) to their business.

There are two parties involved with affiliate programs.

The merchant
The role of the merchant is to provide goods, services or products online. For example is an example of a merchant. They sell varieties of products from books to toys to software and gadgets. The majority of sales made at are through its affiliate members. You can see through this that merchants can increase their exposure on the Internet through the promotion of affiliate programs. With the help of affiliates promoting your goods or services, they bring you targeted traffic to your website.

The affiliate
The affiliate is known as the referrer, the middle man, who links the consumer to the merchant. Affiliates can promote and market the merchants’ products by their own website where they can provide information, reviews and critics on the products or by advertising affiliate products through advertising and marketing campaigns through Google and other advertising mediums. The introduction of affiliate programs has enabled thousands of affiliates to leverage from the traffic they receive to their website, without having the trouble to build an e commerce website themselves.

How it works
Every affiliate program provides the affiliate with an affiliate link. This allows the merchant and the affiliate to be able to record where the customer came from and who referred them, allowing the affiliate to be compensated for their efforts. Tracking of these affiliate links can allow both the affiliate and the merchant to understand what is popular, what works and where the traffic is coming from. By tracking the percentage of people they are referring, and how much of it results in earned revenue, an affiliate can test and find other ways to earn money and monetize their website.

The payment system
Payment structures and rules differ between different affiliate programs. In general, most affiliate programs pay a percentage of sales when a customer visits the merchants’ site through an affiliate link and buys a product or service from the merchant. Some affiliate programs pay a flat fee for every sale and others may offer bonuses.

Affiliate programs offer a partnership between merchant and affiliate, providing a win-win situation for both parties. For this reason affiliate programs are becoming increasingly popular as a great online business opportunity and an easy way to make money online.
Internet Marketing Guide
eBiz-Directory provides you with internet marketing tools, resources and articles to start your own Internet home business, including eBooks, software and audio visual resources. It also features the best affiliate programs you can work with on the Internet.

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