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Affiliate Program Basics


Affiliate Program is a ground floor opportunity. All you have to do is send visitors to your affiliate web site by placing a textlink or banner on your website and receive a commission on each sale, without the complication and expense of selling anything yourself.

Instead, you earn a commission for producing a transaction. Affiliate programs, also known as Referral Programs, Associate Programs, Profit Sharing Programs or Reseller programs, give affiliates the ability to create an online business selling thousands products and services.

One of the first affiliate programs was run by the mega- bookstore, Amazon.com. They still have the largest base of affiliates on the net although they may not be the best affiliate program for many! with over 600,000 web sites being affiliated.

Affiliate programs are generally offered by sites selling goods or services, although some affiliate programs reward other types of transaction such as getting a visitor to sign up for a free newsletter, or a download.

Some affiliate programs pay per lead rather than per sale, in other words, you bring them a prospective customer and they pay a fixed "finder's fee" for the chance to market to that customer.

This is a typical arrangement for affiliate programs in the insurance, real estate and credit card industries, for example:

Types of Affiliate Programs

Pay per sale: If you refer a visitor to the online merchant's site and if visitor makes a purchase you get a percentage of the sale as commission.

Pay per lead: You get paid a one-time fee for generating a lead for the merchant. Usually you get paid $2-$5 if the visitor you referred fills out an application.

Pay per click: You get paid for every visitor you send to the online merchant regardless of any sale or purchase. Usually companies pay $0.05 - $0.15 per click.

Two-Tier: You get commission on direct sales you generate and also you get commission on sales generated by affiliates you recruited. Usually companies pay 25% commission for direct sales and 5% for sales generated by your affiliates.

Bounty: You get a one-time finder's fee payment for the visitor you referred. You will not get commission on any future purchases that customer makes.

The Benefit of an Affiliate Program

Is that you just need to drive traffic to your affiliate site. Write a few articles and provide a few links.

You don't need to find or deal with brokers, wholesalers, inventory, process orders, shipping & handling, customer service, tech support, handle returns, warranties, employees, etc-

An affiliate doesn't even have to be present, your site will keep earning money while you're sick, on vacation, or just doing something else.

Another advantage of being an affiliate, is that you do it from almost anywhere in the world..

How The System Works?

When you join an affiliate program, you will be given a specially formatted URL (Links) that you should use to link to the affiliate provider's site.

This will enable the affiliate provider to monitor traffic to your site and pay according to the type of affiliate program.

Many affiliate programs pay a commission based on a percentage of the revenue generated by purchases made by visitors coming from your website.

For example; if you're participating in an affiliate program that offers a 25% commission and you

send a visitor who purchases US$100 worth of products, you've just earned US$25 in commissions.

The commission rate itself can vary from 20% up- to 50%+ in the case of intangible products such as eBooks or website subscriptions.

Affiliate programs vary widely in terms of overall quality, reliability, commission, statistics, the amount of help that the merchant site offers in marketing the products or services it sells, and so on.

By thoroughly understanding an affiliate program, you'll minimize the risk of not getting paid - and maximize your potential earnings.

Albert Hallado Owner of netbizreview.com (Guide To Internet Based Business) Albert is known for interviewing online business experts and Helping Entrepreneurs Doing Business On The Internet


Todays News by officejax surplus outletMORE AFFILIATE REVENUE RESOURCES updated Thu. February / 09 / 2012

Disney's Earnings Beat; CEO Bob Iger Talks Piracy, Parks - CNBC.com

Disney's Earnings Beat; CEO Bob Iger Talks Piracy, Parks
CNBC.com
Increased guest spending and attendance at the parks, and higher advertising rates and affiliate revenue at the media networks drove the earnings upside. The revenue fell short of analyst expectations (Disney doesn't provide guidance) – at $10.779 ...

and more »

Disney derring-do - New York Post

Globe and Mail

Disney derring-do
New York Post
Affiliate revenue will kick up due to Comcast and other deals that will be negotiated,” Disney CEO Bob Iger said yesterday on a conference call with analysts to discuss first-quarter results. Iger noted the Mouse House doesn't yet have deals with ...
The Walt Disney Company Reports First Quarter EarningsMarketWatch (press release)
Disney Posts 7% Broadcast Revenue DropTV News Check
Walt Disney's CEO Discusses Q1 2012 Results - Earnings Call TranscriptSeeking Alpha
Reuters -Travel Agent
all 338 news articles »

News Corp. Earnings Jump in Second Quarter - Broadcasting & Cable

Telegraph.co.uk

News Corp. Earnings Jump in Second Quarter
Broadcasting & Cable
Affiliate revenue rose 9% at the domestic cable channels. Operating income for the television unit, which includes Fox Broadcasting, rose 25% to $189 million from $151 million. The company said the growth was the result of increased broadcast network ...
News Corporation Reports Second Quarter Net Income of $1.06 BillionMarketWatch (press release)
Headwinds Fail to Deter News Corp.Zacks.com

all 35 news articles »

Pinterest Is Making Money In A Slightly Shady Way - The Frisky

The Frisky

Pinterest Is Making Money In A Slightly Shady Way
The Frisky
It's also a boon for a company like Skimlinks, which takes 25% of all affiliate revenue. So what's the problem here? Well, Pinterest hasn't been disclosing to users when and how it is making money from their posts. If I pin a link to a cute pair of ...
Skimlinks is the real story behind Pinterest's successeu.techcrunch

all 70 news articles »

AMD, Nike, Disney, Panera Bread Among Stocks Driving Big News Feb. 7th - Wall St. Cheat Sheet

AMD, Nike, Disney, Panera Bread Among Stocks Driving Big News Feb. 7th
Wall St. Cheat Sheet
The increase at ESPN was driven by higher affiliate revenue reflecting contractual rate increases and a reduction in revenue deferrals related to annual program commitments. During the quarter, ESPN deferred $190M of revenue compared to $266M in the ...

and more »

Fox Studio, TV Divisions Boost News Corp. Q2 Profits Despite Hacking Investigation - Reuters

Fox Studio, TV Divisions Boost News Corp. Q2 Profits Despite Hacking Investigation
Reuters
A little bit of everything contributed to the higher figures, from a nine percent growth in affiliate revenue to a six percent increase in advertising revenue. FX in particular continued to stand out as a top performer, while the NBA lockout both ...

and more »

Fox on Top - Multichannel News

Fox on Top
Multichannel News
SNL Kagan calculates FNC's affiliate revenue at $985.3 million in 2012, based on 82 cents per sub each month. “The network is getting strong monthly subscriber fee increases, up from 58 cents in 2009,” according to Baine, who projects average license ...

and more »

It's time for Disney to cut ABC loose - Fortune

Fortune

It's time for Disney to cut ABC loose
Fortune
Disney (DIS) blamed the poor showing at ABC on lower affiliate revenue following the end of Oprah Winfrey's popular talk show and a decrease in political ad spending, as it was not an election year. While both may explain a decrease in revenue, ...

and more »

Cruise line, theme parks propel Disney profit - Orlando Sentinel

Cruise line, theme parks propel Disney profit
Orlando Sentinel
Operating income at Disney's media networks rose 12 percent for the quarter to $1.2 billion, as higher affiliate revenue at ESPN and the Disney Channel cable stations more than offset declines at broadcast station ABC. Operating income at Disney's ...

and more »

Viacom's CEO Discusses Q1 2012 Results - Earnings Call Transcript - Seeking Alpha

Viacom's CEO Discusses Q1 2012 Results - Earnings Call Transcript
Seeking Alpha
We expect our affiliate revenue to grow on an annualized basis in the high-single to low-double digit for the foreseeable future. As we unlock value for our content across platform, we're unlocking growth potential across global markets as well, ...

and more »

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