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Affiliate Program Intro


What is an affiliate program? Everyone who surfs the web has come across affiliate programs. You may have seen a banner on a website that says, "click here", and once you do, you get access to whatever's being promoted. Or you could click on a link in an email you've received. You're using someone's affiliate program.

Basically, the company that sells the product sets up an automated way for people to be paid a set amount to help them promote their products or services. The links send you to the company's website where you can buy the product. The owner of the originating website or email gets a fee for taking you there.

The bookstore Amazon was the first company to heavily promote affiliate marketing on the internet. Although this type of marketing is ideal for businesses that only operate online, it's also become popular with businesses that have both an online and bricks and mortar presence.

Affiliate programs are an ideal way to make your web site profitable. With the huge range of affiliate programs now available, there's almost bound to be something to suit you and your website.

How it works

Perhaps you've created a website about the city where you live. People find your website while searching for information about your city. Once they've read your pages they check out your recommendations. They might click a link to book a flight there. You get paid a commission. Then they clink your link that points them to somewhere they can book a hotel room. Another commission for you. Then they might want to buy a guide-book or street map. Yet another commission.

Or perhaps you have a website connected with your hobby. Maybe you want to share your enthusiasm about the crafts you do. Your website could point people towards suppliers, books on the subject, magazine subscriptions?the list is endless. And all the time you're earning your commission.

The commission is paid in different ways according to the company you're affiliated to. You can be paid per impression, per click, per lead or per sale. The stronger the likelihood of a sale, the higher your commission will be.

The advantages for you

There's no need for you to develop the products - it's already been done. All you need to do is to pick the best out of those available. You don't need to spend money on making or storing the product. Sending people to your affiliate merchants means you don't need to take or process a single order, or worry about processing payments. You don't have to handle or mail the product - your merchants do that. You don't have to offer customer support. Affiliate programs are usually free to join. You can run your affiliate business part time for a little extra cash while making minimal effort.

Choosing your affiliates

It's worth spending some time making sure that you choose the right companies to affiliate with. Different companies have different requirements. Some require you to have a minimum number of visitors to your website, while others require you to have your own domain name.

The best way to choose an affliate program that will suit you is according to the type of people who visit your website. If your website is about guitars, you're unlikely to have much success with affiliating with a company that sells gardening products. The first thing you need to do is know your target audience.

You also might consider whether you want to join every single affliate program that comes your way. A lot of people find that they make the most money from using only a small number of programs. Also, concentrating your advertisements may allow you to be paid faster.

Sometimes, it can be hard to choose between two similar companies. What works well for someone else may not be the best choice for you. It's not just about how much money you can make -you'll want to feel confident in your recommendations.

You can maximize your income by thinking beyond the obvious. If your website is aimed at parents, obviously you might think of affiliating to a toy company. But what about books, clothes, videos, DVDs, child oriented software?

If you're thinking about affiliating with two similar websites, you might want to choose the one that easiest to use or offers the greater benefit to a visitor, even if it pays less in commissions. You'll do best with programs that represent a subject you're personally interested in. Your own interest in the subject will entice others.

To join an affiliate program, you simply go to the site and complete their online application form. Some programs approve you instantly, while others check out your application before it is approved. Once it's approved, you're given some HTML code that you can cut and paste onto your web page.

How do I make my money?

Before joining any program, you should probably be aware of the different payment programs available.

Pay Per Impression
Here you are paid according to the number of times the advertiser's banner is displayed on your site. The amount paid is usually small, but it is easy to earn as everytime a visitor loads the page, you earn. The more vistors your site attracts, the more you earn.

Pay Per Click
With this method you're only paid when visitors click the advertiser's banner on your site. It generally pays higher than the pay per impression program. You'll get better results if your banners are carefully selected to suit your target audience.

Pay Per Sale or Lead
You only earn if your visitors click through the banner and buy the product or service.

Often, to avoid wasting resources in issuing checks for very small amounts, advertisers will accrue the amount owed to you until it reaches a certain amount before they pay you.

How do they keep track of referrals?

Every affiliate banner or link that a visitor clicks on has some type of coding added to the URL - this differentiates it from other affiliates' links. The most common means of tracking affiliate links is by "cookies" Cookies are tiny files stored on your computer by a web browser when you click on an advertising link.

Cookies are generated to track visitors to websites. This is how they can "remember" what you bought when you visit there again. For an affiliate company, the cookie records information on which affiliate referred the visitor to the company, and when. As some computer users block or delete cookies, there are other methods used to track referrals. For example, CGI-based scripts related to the individuals affiliate code attached to the URL links and database matching algorithms are used. Second tier programs

A two tier program allows you as an affiliate to sign up other affiliates under you. You earn a smaller commission on the referrals or sales that arise from their advertising efforts as well as your own.

This costs you far less time and money for each sale if some of them aren't yours. In effect, you have your own sales force and pay a commission to your sub-affiliates. Except that the commission comes out of the affiliate company's profits rather than yours.

The affiliate company benefits by a possible exponential growth of its sales force for no more effort on its part - you're providing that. It's not hard to recruit people under you in two tier programs.

A second level can be a great advantage to you as an affiliate. Even if you only spread the word amongst friends and family, you never know when someone who signs up under you will really take off. They could earn you a lot by their own efforts in spreading the word about a program. You might not get rich, but you'll get some welcome extra income.

A multi tier affiliate program builds on the concept of a two-tier program. Not only can you earn from sub-affiliates, but you can also earn from their sub-affiliates, and perhaps their sub-affiliates. With a two tier program, you have an incentive to sign up sub-affiliates. A multi-tier program gives you the incentive to help your sub affiliates sign up others.

Is it for me?

If you have a website then there's guaranteed to be an affiliate program to suit your needs and audience. For minimal effort you can make your website earn money, even while you're happily sleeping. Perhaps it won't make you a fortune overnight. And it's true that no-one hands you money for doing nothing. But with some careful thought and planning, choosing an affiliate program that fits in with YOUR website and sells products that YOU are confident in is a straightforward way of increasing YOUR income. And it costs you nothing.

Shanon Lewis is a web marketing specialist with over 7 years of search engine placement, e-mail marketing and affiliate management experience. She is part of the expert team at affiliate programs.com, the premiere affiliate programs directory online.


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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