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Affiliate Program: A Beginner's Guide

Discussion in 'Affiliate Programs' started by Diamond Damien, Nov 7, 2006.

  1. Diamond Damien

    Diamond Damien Owner BlackHatWorld Staff Member Jr. VIP

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    Affiliate Program: A Beginner's Guide


    Are you an avid ?Netizen?? Then you might be familiar with the term, ?affiliate marketing?. A number of times the term has sparked off your curiosity, but you could not quite cipher out what the term actually refers to. Well, now you have reached the right place, for this article explains the fundamental points of affiliate marketing for an easy understanding about the concept.

    To start from the scratch; at the time of surfing the net you might have clicked number of times on the banners or links only to be carried over to another website selling a particular product. Well, the former was an affiliate?s website trusted for the promotion of the product of the latter?s. Sometimes you get e mails containing links that also take you to certain sites. Here also you are responding to another kind of affiliate program.

    The entire concept works like this: a company has a certain product to sell, preferably through its website. Now it creates an automated process, where other websites are offered to join hands with this manufacturer?s website with an agreement to promote its products. These promoting websites place links and banners in their websites and on clicking on the links you will be taken to the company's website where you can buy the product or services. The owners of these promoting websites earn a commission for taking you there. The job done by the promoting websites are simply referred to as affiliate marketing.

    Take this example for a better understanding: Perhaps you've created a website that deals with the craft of candle making. Suppose people who share the same passion about this craft visits your website. Then sprinkle up recommendations all over the pages. They might click on the link that takes them to the wax supplier?s site and makes some purchase. And you earn some commission. Then your website may point toward a certain magazines on the art and take the visitor to their website where he eventually makes an annual subscription for the magazine. And yet another commission earning for you! The series seems to continue and all the time you keep on getting your commission right away.

    Now what are the possible ways of getting the commission? Well, there are number of ways, how the affiliates are paid their dues. The way of paying commission however depends on how the company you're affiliated to chooses you to pay. In general, you can get commission for every impression, for every click, for every lead or for each sale. However, your earning will be higher as more and more number of visitors from your site make purchases at the company?s website.
     
  2. i hate wagonmonster

    i hate wagonmonster Newbie

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    what are some typical compensation amounts per method of payment (i.e. for a purchase versus a click)?
     
  3. gifmore

    gifmore Regular Member

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    I figure you mean percentage commissions to actual dollar amounts, right?

    Say I'm selling a $100 dollar product as an affiliate and the commission is 50%, then each sale I make, I'll earn $50.

    On the other hand for CPA (cost per action, i think) network programs, every action taken (e.g. clicked on an ad, entered a zip code, requested a free report etc.) could earn you from cents to dollars. By the way, google adsense is sort of like affiliate marketing / CPA revenue too, right? someone clicks on an ad on my website and I make anywhere from 1 cent to many dollars.

    Is that what your question was asking?

    Cheerio