Are Affiliate Programs Sensible?
By Denise Hall (C) 2003
Have you ever wondered how "the big guys" earn so much money on internet? Sure, some of them have huge advertising budgets, which puts small business owners at a disadvantage.
But some of biggest names today started out just like you and me. They had low advertising budgets and fumbled their way around internet trying to get visitors to their websites and sell their products.
Even though they had terrific products, they couldn't sell them if no one knew about them. They put on their thinking caps to find easiest and least expensive way to get visitors and make sales.
They finally came up with a plan that would benefit not only them, but others as well. If they could get other people to promote their products and websites, they could earn more money.
And so, Affiliate Programs were born! What a concept! A better way to get visitors to a website and sell more products!
They offer their visitors opportunity to "partner" with them, often for free, to help sell their products. And many of them offer two-tier affiliate programs.
So if I sign up as an affiliate I can get others to sign up under me as my sub-affiliates. I earn a commission for sales I make directly to my customers. But I also earn a smaller commission for sales that my sub-affiliates make.
It's a winning situation for everyone! The "big guy" made money because he sold his product. However, he might not have made that sale if it wasn't for my advertisement. And I made money because I advertised his products.
The concept of affiliate programs is really not so new. It's similar to selling cosmetics or other products for many well-known companies.
For instance, I have no idea how to invent a new cologne, but I know how to sell it. Therefore, I could sign up as a representative for a cosmetics company. They, in turn, would pay me a commission for selling their products.