Positives to affiliate programs:

+ You're free to concentrate on just one thing: marketing. The affiliate company handles everything else - billing, inventory, delivery, customer service, and all other stuff that goes with territory. This is one reason why affiliate programs are so popular; they give you opportunity learn how to market online without being overwhelmed by everything else.

+ Startup costs are lower than if you had your own product. There are numerous costs associated with research, development, and delivery of your own product. When you run an affiliate business, only thing you're responsible for is marketing - and you have option of using free methods only.

+ You get a 'head-start' while researching product ideas. Affiliate programs allow you to sell a product or service while you're still trying to come up with a product of your own. That's not to say that they're an 'easy' way to riches - they're not - but you can learn how to market while earning an income.

+ Multiple streams of income. A bunch of 'smaller' pay cheques can really add up! It's even better if you already have your own product or service and just want to use affiliate programs to add another stream of income.

Many people from all walks of life make hundreds or even thousands of dollars every month through affiliate programs alone. Affiliate programs aren't perfect, but they provide a great option for those who are willing and able to put in necessary time and effort.

___________ Angela is the editor of Online Business Basics, a practical guide to building a profitable Internet business on a beginner's budget. Each issue is packed with valuable tips and tools to help you to nurture your business to success! http://onlinebusinessbasics.com/article.html

Chances are, people you sign up into 2nd tier via your affiliate program link will end up buying product themselves. So not only do you get a direct commission from sale to this person, you also get 2nd tier commissions from any sales they make in future.

2. Set up a mini-site for one of your affiliate programs so that you are only reselling this one product or service. This would be a site with just 2 pages. On first page is link to product itself.

On 2nd page is description of affiliate program and link to affiliate program sign up page.

Your goal is to actually direct your visitors to 2nd page where they can sign up to affiliate program. Why?

You will get more commissions from signing up affiliates into your 2nd tier than by visitors directly buying product through your affiliate link. This is because more people will be interested in affiliate program rather than product. But when they join affiliate program, many of them will buy product or service.

In summary, think about using your site as an affiliate program site as well as a sales site. It gives you 2 bites at cherry and having 2nd tier affiliates means you can be earning commissions for many years.