Commonly traffic to merchant sites is measured and affiliates can clearly see conversion rates. Meaning, they track percentage of people they are referring, and how much of it results in earned revenue. If 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, affiliate site needs to either have tons of traffic or target a specific audience, frequently one untapped by merchant. It has been my experience, closer affiliate site content resembles merchant products, higher likelihood of a good conversion rate.

Once you are committed to idea of affiliates, next step is to determine 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 'order confirmation'/'thank you' page, and cookies, which are created after customers click on a banner ad. Cookie killers have been a problem for 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 customer downloads a trial version prior to purchasing. Buy now buttons in software have affiliate ids imbedded in 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 affiliate is not compensated fairly they will not remain in merchants network. The bottom line is that affiliate relationships are partnerships, when both sides feel situation is fair and equitable 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

To know your product you need to USE IT, and know EVERYTHING there is to know about it. It’s like going to watch a movie that you really, really enjoyed, you get this scene of excitement to share your great experience with others, well … you need to get that same excitement about your product that only comes about by KNOWING YOUR PRODUCT.

Strategy Two

The Golden Question for all affiliates is ‘How can I create an advantage for me?’

The Answer: Incentive Marketing

If you have never heard of Incentive Marketing, you are sure to have been a victim of it in your every day life.

Think about it… have you ever Up sized your meal at McDonald’s, have you ever brought anything because of Free Gift or Discount.

Incentive Marketing, Incentive Marketing, Incentive Marketing…

It doesn’t matter that there are potentially thousands of other affiliates promoting same program because from today onwards you are going to create an unfair advantage. Start thinking about what you could possibly use to create an unfair advantage and in PART TWO, I will give you strategies you would need to become an SUPER INCENTIVE MARKETER.

To Your Online Success!

About the Author Gillian Tarawhiti, is Founder and CEO of Community Training Centre, an Australian-based Internet Marketing firm that works with individuals and organisations © 2004