5 Reasons You Need a Business Plan to Succeed as an Online Affiliate

Written by Clay Mabbitt

Affiliate vs. MLM

These words are often used interchangeably, but actually indicate very different types of programs. Both systems allow participants to develop income streams, but they require different approaches in order to be successful. Sincerepparttar focus of AffiliateScreen.com is to review programs that could be used to build residual income, you can find both types of programs listed here.

Affiliate Programs One ofrepparttar 102466 best examples of an internet affiliate program is offered by Amazon.com. If you have a website, you may place links on your site to Amazon.com (either general pages or specific products). If someone clicks your link then ends up buying a product, Amazon.com will pay you, as an affiliate, a commission onrepparttar 102467 sale. That is an affiliate program in its simplest incarnation. If you manage to get a large volume of people to follow your links to Amazon.com and make purchases, then you can expect these commissions to amount to a healthy revenue.

MLM Programs Multilevel marketing programs (MLMs) are more complex. Let's say you are an Amazon.com affiliate and you are making a little extra money from commissions. Your friend Sally has a website and asks you about becoming an affiliate. You direct Sally torepparttar 102468 section of Amazon.com's website that addresses joiningrepparttar 102469 affiliate program. Wouldn't it be nice if Amazon.com gave you some financial reward for introducing Sally torepparttar 102470 affiliate program and potentially increasing Amazon.com's profit? (They don't, byrepparttar 102471 way.) If you do receive any form of direct financial benefit for introducing new people torepparttar 102472 program, thenrepparttar 102473 affiliate program becomes a multilevel marketing program.

The direct financial benefit can take many forms. You could get a flat fee for introducing Sally torepparttar 102474 program. You might receive a small commission onrepparttar 102475 sales generated from Sally's website. You could receive a payment each month that Sally participates inrepparttar 102476 program. You might get some combination of those options.

Use an 'Affiliate Network' to Boost Your Commissions

Written by David McKenzie

Most affiliates concentrate exclusively on direct sales. For affiliates this means joining an affiliate program and marketingrepparttar product or service through their web site or via email. The affiliate earns a commission for every sale made.

Very few affiliates appear to focus onrepparttar 102465 2nd tier.

Most good affiliate programs are 2 tier which means that as well as direct sales you can also build what I call an ‘affiliate network'.

An affiliate network isrepparttar 102466 ability to get affiliates signed up under you and earn commissions onrepparttar 102467 sales that those affiliates make.

A common commission structure might be 25% for direct sales and 10% for indirect sales.

As an affiliate you can earn 25% on any sales you make.

Building an affiliate network means you can earn 10% on each sale that each affiliate makes. If you have 100 affiliates in your affiliate network then you can see that a few 10% commissions can quickly surpassrepparttar 102468 25% direct commission.

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