The Internet has made it quite easy to make money by using fully automated affiliate programs on a big range of different products and services. There are affiliate programs tied to every product in the marketplace and thousands of people make money each and every day through affiliate links and affiliate programs.
If you’re not familiar with affiliate marketing, it basically means promoting a company’s products and services and earning a nice commission when you refer customers to a merchant’s website or ‘site’. The main advantage of affiliate programs is that you don’t have to worry about product delivery, as the merchant handles this for you.
There are a number of sites on the internet that offer affiliate programs and some of these are quite sophisticated and offer significant business growth potential, especially for businesses. For example, software hosting service sites offer some of the best affiliate marketing opportunities thanks to their comprehensive range of affiliates.
Furthermore, if you are thinking of getting involved in affiliate marketing, you will want to take note of the various types of affiliate programs offered.
Automated Affiliate Programs Business A
The affiliate program business model, often abbreviated to ‘affiliate program’ is a revenue sharing agreement between the affiliate (which is usually free to sign up) and the merchant (which operates the actual website). The merchant will pay the affiliate a pre-determined commission when the affiliate refers a visitor to their site who subsequently buys a product from the merchant.
The affiliate program business A is often called a ‘pay-per-sale’ model, where the affiliate receives a commission for each sale. In many cases, the affiliate also receives a smaller percentage based on overall revenue share, to whom the commission is due.
Automated Affiliate Programs Business B
In a second option, the affiliate program business B is often called a ‘pay-per-action’ model, where the affiliate receives a commission based on whether the visitor you refer fulfils a particular action, such as clicking on a link, or completing a survey, or signing up for a newsletter, for example.
Some merchants offer multi-tier programs in which the affiliate not only receives payment for the direct traffic or sales that they refer to the merchant’s website, but also for the traffic or sales referred by their affiliates in the form of affiliate referrals. This is where the affiliate receiving payment for additional sales or traffic referred by affiliate referrals can develop a powerful residual income source.
Some merchants offer a combination of the two types of affiliate programs. You can find examples of affiliate programs in which the affiliate receives payment for visitors who click on a link on the affiliate’s own website and then go on to purchase an item later.
However, it is only in recent years that some merchants have taken affiliate program membership into their overall marketing plan. This is where affiliate program membership plays a valuable part in affiliate marketing.
By signing up for affiliate program membership, you are able to not only receive a steady stream of income, but you are also able to take part in the overall success of the merchant. It offers the merchant’s business expansion, helping to sustain the status of the product or service that you have chosen to promote and, in turn, offering you the opportunity to earn substantial commission.
How To Make Money With Your Automated Affiliate Programs
Making money with your affiliate program has to be your main priority as soon as you have chosen your affiliate program membership. Remember that whatever percentage of commission you end up receiving is, in most cases, a ‘non-recustainable income stream’. If you are to make a sustainable and profitable income online, you will need to promote affiliate products or services on a full-blown basis.
You cannot assume, for example, that just by signing up for a particular affiliate program, sales will start pouring in and you will start earning commission as you know. You will have to do your homework and ensure that the niche that you have chosen has a high demand and has a high buying percentage. In this regard, you should always go for the affiliate product that offers a high percentage of commission.
The importance of the percentage of commission in your affiliate program does not mean equally for all your affiliate programs. You may find that only 1 out of 100 affiliates are likely to buy your product or service. Hence, you may end up generating 100 sales and earn a rather large commission percentage. On the other hand, you could end up generating only one sale and with a much lower commission percentage.
The bottom line is that you have to choose the appropriate affiliate program based on your unique situations. If you have a low cost index, you obviously will not be able to generate as much sales as you would like.