There are five basic types of affiliate program payment arrangements:
Additionally, there are a few pay-per-impression affiliate programs. Companies running these programs, also called pay-per-view programs, pay affiliates based only on the number of visitors who see their banner ad.
Affiliate networks, or "affiliate brokers," act as mediators between affiliates and merchant Web sites with affiliate programs. They track all activity, arrange all payment, and help affiliates set up the necessary links on their Web site. Additionally, affiliate networks help recruit affiliates by including an online merchant's affiliate program in their directory. Different affiliate networks offer different extra features, but most have a help-center and a place affiliates and merchants can go to view reports of their traffic. Affiliate networks are a real convenience for prospective affiliates because they present a wide variety of affiliate programs in one central location. They make it much easier to find a good program that is appropriate for your site.
How to implement Affiliate Programs:
If you are interested in getting involved in affiliate programs, the first thing you have to do is decide whether you want to become an affiliate, want to acquire affiliates, or both.
Join as Affiliate: If you run a small content site as a hobby and would simply like to bring in a little money to cover production costs, you can join as an affiliate. Becoming an affiliate is relatively easy. Go to an affiliate network site and fill out an online application to become a member. The application will ask for some personal information (name, address, payment method) and information on your site (URL, name, and description of content) and will have you agree to a service agreement. Most affiliate networks are completely free for affiliates.
If the affiliate network approves your application, you can begin picking affiliate programs that interest you. Once you've chosen some affiliate programs, the online merchants running these programs will have the opportunity to review your site. If they approve you, the affiliate network will walk you through the process of posting the appropriate links, which come directly from the network's site. They will also establish payment arrangements with you. Because the amount of money you earn per action can be extremely small, most affiliate networks have a set minimum payout amount. This means you won't receive a check until the total money owed you reaches a certain amount. After you have set all this up and the affiliate network has explained its system to you, you can get back to work on your Web site's content and wait for your money to come in.
Acquiring Affiliate: If you run an e-commerce site and would like to increase your sales, you might want to start your own affiliate program. Your best bet is probably joining an affiliate network. An affiliate network will help you set up an affiliate program and work to recruit affiliates for you. You'll have to fill out an application describing the nature of your business and your Web site. You'll also have to agree to the terms of the affiliate network and make a number of deposits. These will probably include a one time charge for becoming a member of the network as well as a deposit to be used to pay your affiliates. Some affiliate networks also charge a yearly fee for their services. To join one of the major affiliate networks you'll probably have to put up between $1,000 and $5,000. You will also pay the affiliate network a percentage of every payout to an affiliate. In return, the affiliate network will help you set everything up, keep track of all the activity in your affiliate program, issue your affiliates checks and distribute your links to appropriate affiliates. They will give you the option of reviewing prospective affiliates, or you can choose to accept all interested affiliates automatically.
The alternative to acquiring affiliates, maintaining an affiliate program yourself, is significantly more complicated. Among other things, you would have to screen and recruit all affiliates yourself, purchase and maintain some sort of tracking technology, instruct your affiliates on how to set up links to your site, set up an accounting system for paying all of your affiliates and set up a help line to assist all your affiliates. There are a number of traffic-tracking software applications that will probably cost between $100 and $500, significantly less than joining an affiliate network. Another option is to sign on to a company that keeps track of the traffic involved in your affiliate program by running it through their site on the way to yours. Using one of these companies costs about the same as tracking software, and they also only assist you in tracking. Maintaining the business end of an affiliate program is more than we can explore in this article, which is a good indicator it is also more than most Web sites would want to get into.To create your own affiliate program you can use the software too. Like “AFFPLANT” software of Affplanet.com which is available at there site at http://www.affplanet.com/?lid=f1f483a3&a_aid=4c7ff379&a_bid=0ad7b67d.
Methods for linking: An affiliate (Publisher) can link to a merchant site in a number of ways. The best link choice depends on the nature of the affiliate and the nature of the merchant. Each kind of link is specially suited for particular purposes. Common types of links include:
There are several ways affiliate programs use these links:
For affiliate (Advertisers): The affiliate programs increases the advertiser’s site traffic. By this he can get any/all of the following advantages:
In short advertising on the Web with banners means more sales and/or more influence!For Site owners (Publisher): By the affiliate programs the publisher has the following benefits:
For affiliate programmer (Middle man): He can get commission from the advertiser according to agreement. Thus larger no. of clients means more money.
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