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22 February 2010

Affiliate Programs Explained

More people discovering power of affiliate marketing to supplement or replace their current income. But there are still more people who want a slice of this exciting world but are unsure of what an affiliate program is or what it consists of.

When discussing an affiliate program, it helps to compare it with a traditional networking company, where a network of sales representatives and distributors are recruited to sell their products to all corners of the globe.

As an example, instead of a company that sells directly to their customers, selling products through several dealers and sellers. On the other hand enjoys the members of this distribution and sales network a very good living by promoting the products of others.

In essence found affiliate programs on the Internet, distribution and sales efforts for the online world. The affiliate website will take place from the dealer and distribution network, and each is paid by the seller of the product when a sale is made. Of course there are affiliate programs where physical products to be sent, but there are also many other affiliate programs where only software or informational products to be retrieved.

It is easy to understand why this event is so popular, from the viewpoint of both merchants and the site owner. The merchant benefits from increased sales, and at the same time, not to pay for additional advertising and he can expand its network without the need for additional and often expensive advertising. The affiliate, on the other hand, maybe not a product of its own to make money and sell someone else's product for a share of the selling price gives him the opportunity to start their own business.

Course work required on the part of the affiliate to promote its website and the product he is trying to sell. There are many ways that an affiliate program can be promoted. An example would be if the affiliate already has a website and a link is added directly to the merchant site. It costs nothing to install and is very easy to do with a little cutting and pasting.

All good affiliate programs will have a back-office with tools to use and it is always advisable to protect your affiliate links and therefore your commission by hiding your links so they do not get chopped off or used by others.

Commissions paid by merchants vary. You can expect anything up to 70% or even more with some affiliate programs, but these will mainly be software downloads. If you go to ClickBank, you will find thousands of such programs to promote. With these kinds of commissions, it is easy to see why the promotion of software type programs are such a good way to make money online. At the other extreme, but some affiliate programs pay a pittance, as low as 1.5% in some cases, you'll have to ask yourself whether these would be worthwhile.

Affiliate programs are very popular on the Internet. If you do not have your own product to sell, and you'll have a shot at earning some money on the internet, so is affiliate marketing is the way to go. Give a little time, effort and patience, and you will be rewarded. So if you are not already familiar with the concept of affiliate marketing, why not check it out?

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