© 2004, John Calder http://www.TheEzine.netEver since Amazon launched what is perhaps
most well-known, but not
first, affiliate program in 1996, other merchants in every business category imaginable have followed suit. And even though many webmasters have earned money from these programs ever since, there are still a lot of questions to this day about affiliate (also known as associate or referral) programs. So maybe it's time to revisit some basics for new or soon-to-be Internet marketers.
An affiliate program is, at
bottom line, a commissioned sales job. Like
Fuller Brush salesman of old, you are an independent representative of a company, offering their products or services to potential customers. When one of them buys, you get a percentage of
sale. But, in
high-tech version, you have a few very powerful advantages over
classic door-to-door sales rep.
To start, you can represent multiple products from more than one company at a time, on as many web sites as you own, in as many markets as you choose. You don't have to travel anywhere, yet
web puts you in front of a worldwide market. This gives you an incredible diversity of products, markets, and "neighborhoods" to sell in, all from right in front of your computer screen. You could possibly make multiple sales at one time, yet you never have to deal with door-slammed-in-your-face rejection. On
Internet, you don't always even have to make a sale to earn a commission. Some affiliate programs will pay you if someone just clicks on a link at your site, fills out an application, or even asks for more information. And here's
best part - your web sites work for you around
clock, every day.
Commission rates vary by type of product. Physical goods (that have to be shipped) tend to pay lower rates than products like software or ebooks that can be digitally delivered. However, 5% of a $2000 TV is more than 50% of a $50 ebook, so you have to remember to look at
big picture when deciding what affiliate products to offer. For best affiliate sales results, you'll want to offer products and services designed to appeal to
target audience of your web site. For example, it makes no sense to place affiliate links to mechanic's tools on a cooking site, while it makes perfect sense to place them on a site about restoring cars.