Affiliate Programs: The Basics
By James R. Beach

Web merchants are increasingly using an affiliate network to sell goods in
cyberspace and you can profit from it. This latest craze works because it is
an arrangement that benefits the merchant, the consumer and you.

To participate in an affiliate program you simply enroll and place the
merchant's banner ad on your site. When someone clicks on that link to the
merchant's site and buys something, you get paid a percentage of the sale or
a flat fee. Enrolling doesn't cost anything and the vendor handles all the
questions, orders and product fulfillment. You may also receive a discount
on products or services from the merchant.

Large concerns typically handle their programs in-house. You go to their
site to enroll. Amazon.com, the internet book seller, is an example. If you
want to sell their books go here: http://www.amazon.com. Other retailers
hire third-party services to handle their affiliate program. You can reach
two such service companies at http://www.befree.com and
http://www.linkshare.com. Nearly anything can be sold using an affiliate
program. Items such as computers, electronics, books, toys, music, credit
cards, flowers and gifts are examples.

The merchant benefits are these: It's a low-cost way to market goods. They
don't have to pay for a new customer until a sale is made. Plus, they get
added exposure without spending advertising dollars. Instead of having one
website selling their wares, they may have 1,000 or more sites, all with
their ad on them. Wouldn't you like to sell something through thousands of
sites instead of one? Plus, they don't pay you simply to host the banner on
your site connecting to their web location. They pay only when a purchase is
made. Wouldn't TV or radio advertisers love to pay only when a sale is made?

What does it do for you? It allows you to earn an income without your own
product. You do little more than enroll as an affiliate, receive approval,
cut and paste a banner on your site and you're in business. You're in a
position to earn a commission. You don't have to accept credit card orders;
you have no inventory, no employees, no overhead.

In addition, it offers you the ability to associate yourself with well-known
on-line merchants and increase the value that you provide your on-line
visitors. You can sign up for as many as you'd like.

Once you've placed the link on your site, some affiliate programs (and the
affiliate services) allow you to check a report at any time to see how
you're doing. And when sales are made, they'll send you a check as soon as
your commissions reach the company's minimum.

An affiliate program will work best for you if you choose one that
corresponds with the theme of your site and the audience you expect to
attract. If you want substantial sales don't rely solely on the banner ad.
Every other affiliate will be using the same banner. Recommend the product
and tell them why you endorse it. Here are some more tips:

When choosing an affiliate program, look for:
-a company that offers something of interest to your visitors
-products that somehow relate to your site
- established company with some name recognition
- 20% or more commissions on sales
- recurring commissions. (as opposed to a one-time sale, one that continues
to sell
every month to the customer, for which you get paid)
- two-tier programs (where you earn from sales of others
you send to the site who decide to enroll as an affiliate)

It's a little like any other relationship. How much you get out of it
depends on how much you devote to building the relationship. Just putting a
banner ad on your site doesn't guarantee you any sales. But with a little
promotion you just might make some easy money.

Mr. Beach is a corporate marketing veteran and Netrepreneur who has taught
marketing classes at the university level. Jim's company, SandDollar
Marketing Group, specializes in locating scam-free and guaranteed business
opportunities on the internet. To see his recommended opportunities, get
free marketing reports, free advertising resources or a free website, visit
http://www.business-opp.com