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Learning about Affiliate Programs



An affiliate marketer is one who sells products through his website without actually owning the product. Therefore, there is no cost for buying products, maintaining inventory, or shipping. An affiliate marketer has only one responsibility that is to complete the desired transaction be it selling or lead generation. They are mostly paid by commission for every sale that could be as little as a few percent or a set dollar amount per transaction. In this post we’ll take a closer look at what an affiliate program is and how you can benefit from joining one. We’ll leave the comments open below so you can join the conversation and your own answers. But first…

What is an affiliate program?

It would be difficult to imagine internet marketing without affiliate programs. Online businesses hope to increase revenue through their affiliate programs. An affiliate program is an opportunity for the advertiser, and the publisher. The advertiser is the company with a product to sell. The publisher is driving traffic to the advertiser’s website making money on commission.

Real world example: Let’s say you have a mortgage business and you want to generate leads through your brand new website. The website looks great, your online lead generation form works like a charm, except you have no visitors. You could create an affiliate program and pay your affiliates for each lead. In essence, you have created a win-win situation for your business and your affiliates. You only pay for leads not promises, and you have created a profitable opportunity for content publishers.


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How do I find good affiliate programs?

You can profit from affiliate programs, even if you don’t have a product to sell. You could become an affiliate for other businesses. If you enjoy writing, you could start a blog and earn affiliate revenue. Make sure you only enter into partnership with reputable companies. If an affiliate program sounds too good to be true, you can bet your boots that it is. The products you market should have a proven track record for being successfully marketed and sold online.

The best part about affiliate programs is that they don’t require any financial investment on your part

If you are asked to send money to join an affiliate program,, you should walk. It is a sign of bad things to happen.

Finding affiliate programs is easy. There are some of several reputable affiliate directories.

Commission JunctionShare a SaleLinkShareJVZooClickBankAmazon Affiliates



The Different Types Of Affiliate Marketing

For merchants and affiliates alike, affiliate marketing is now considered as a main source of profits and revenues. So the question now is what type of affiliate marketing will work best for you? Are all affiliate marketing programs the same? Are the benefits the same? Or are there affiliate marketing programs that work better than the others?

There are actually different types or classes of affiliate marketing, and the number of types will depend on how one will classify them. The most basic affiliate marketing programs, however, falls under two categories: pay-per-click (PPC), and cost-per-action (CPA).

Pay Per Click (PPC)

PPC is the most popular type of affiliate marketing for affiliates with small websites, and probably the easiest way for them to earn money. In this affiliate marketing type, the merchant pays his affiliate whenever a visitor is referred to his site, that is whenever someone clicks through the merchant's banner or text ads. The affiliate gets paid a certain amount even if the visitor he referred does not purchase anything from the merchant's site. However, typical fees for PPC affiliate programs are small, usually not exceeding a dollar for every click.

Of course the biggest and most important PPC network today is Google Adsense. This platform allows you to place links and banners on your website from the Google Ads network and earn a small profit per click. Google Adsense is a powerful platform that displays targeted ads based on your visitor’s search history. Most affiliates plan on using Google Adsenseon their website and place banners in visible areas that are preferably visible before scrolling down in a web page. Placing ads above the fold is used to help your business monetize from traffic that leaves your website before engaging with your content.



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Cost Per Action (CPA)

CPA affiliate marketing is the most popular among merchant and is also the most lucrative type for the affiliates. In this type of affiliate program, the merchant only pays the affiliate whenever his referral translates into an action—that is whenever the visitor he has referred actually buys something from the merchant's site or when the visitor registers and becomes a lead. This means a lot of savings for the merchant. On the other hand, it becomes the most lucrative type for the dedicated affiliate, for commissions in CPA affiliate marketing usually comes in the range of 15% to 20% of the actual product sales.

Aside from these two specific types of affiliate marketing, a lot of other affiliate marketing types exist. If the classification is based on the depth of the affiliate network, it can be classified as single-tier, two-tier, and multi-tier affiliate marketing. There is also another type of affiliate marketing that pays the affiliate each time the customer he has referred purchases something from the merchant's site.

  •  Single-Tier, Two-Tier, and Multi-Tier Affiliate Marketing

These types of affiliate marketing are based on the different levels or tiers in the affiliate network by which payments are made. In a single-tier affiliate marketing program, the affiliates are only paid based on the direct sales or traffic he has referred to the merchant. In two-tier affiliate and Multi-tier marketing programs, the affiliate is not only paid for the direct traffic or sales that he refers to the merchant's site, but also on every traffic or sales referred by various other affiliates who joined the affiliate program through his recommendation.

  •  Residual Income Affiliate Marketing

In residual income affiliate marketing, the affiliate gets paid not only once for every customer he has referred to the merchant's site. Rather, the affiliate is also paid whenever the customer he has referred returns to the site and purchase another product. Compensation for such type of affiliate marketing is based on either sales percentage commission or fixed fee basis.

The different affiliate marketing types would virtually work differently for merchants and affiliates alike, and each would generally have their own list of benefits. Which type of affiliate marketing will work best for you? It is not really for me to tell. Rather, it is for you to choose which type of affiliate marketing program will suit your needs and characteristics best.



Why Do You Need To Join An Affiliate Marketing Network?

 

The affiliate has a choice. They can either work with multiple merchants, or they can work with an affiliate network. So why should a marketer want to work with an Affiliate Network?



I remember a friend told me a story awhile back.

He had built a small website and had signed up to become an affiliate at a stack of different affiliate programs related to the topic of that site. A few weeks after he had set up the site including links and banners from multiple affiliate programs, he turned his attention to other business interests and lost interest in the site.


A few months later, he noticed that a few checks had started arriving from the affiliate programs he had joined up with. Not large checks, but amounts for a few dollars here and there. That was his first problem – as he was living outside of the USA, lots of small amounts result in lots of bank charges. (Which makes me ask - Why can’t all countries allow affiliates to bank checks at NO CHARGE?)


Nevertheless,

the checks continued to come in, and although some of them were posted on his wall as they were so small he couldn't bank them, he wasn't complaining as he was making money he hadn't expected. It turned out that his site had ranked high up on specific keywords in a major search engine, and he was receiving a fair amount of targeted traffic for free. A few months after that he decided to log into all the affiliate accounts he had registered with, and noticed that some of them had not paid him as the amounts were too small, some of them hadn't paid although they should have, and some even showed that they had sent him amounts that he didn't recall receiving checks or EFT or paypal or any other payments for!



So how does working with an affiliate network prevent this from happening, and is this the only reason to work with an affiliate network?

A good affiliate network has a number of different offers which the affiliates can promote, and nearly all the affiliate networks consolidate the amounts the affiliates earn from the various campaigns. This means that the affiliates receive a CONSOLIDATED payment rather than many smaller ones.

The easy way to earn from affiliate marketing is to join our affiliate marketing network. For the affiliates, joining our affiliate network makes earning money online a whole lot easier. Instead of going after many merchants for payment, the affiliate has only one contact for all the advertisers. Aside from the convenience, Borderleads affiliate marketing network will also extend support to the affiliates. Joining our Affiliate marketing network lessens the risk of venturing into marketing without proper management and guidance.



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Daniel Garcia

Marketing Consultant and founder of LocalBizTEXAS.com. Get in touch with him at -JidkpWZkLywk5+dkL6Vhqi5pL2v0p+TkQ@nospam or call (915)667-3280

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