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The internet affiliate marketing program What is it, why use it and how to make money online.
Affiliate program is a system in which a business pays money, in the form of a commission to those who forward paying customers to its website.
Internet affiliate marketing programs rely on advertisements usually placed on your webpage
for free, and then the web affiliate program tracks who is sending the customer to their website using a special
unique code which is contained within the clicked url address of the advertisement.
There are many top affiliate programs to choose from and so you can become a affiliate website.
Products from the affiliate programs can often be selected to compliment and support the theme of your own website and
still make money online.
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All USD prices were correct at the time of page publication Nov / 2006 please check the prices when ordering or enquiring.
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Affiliate Marketing What Is It And Why Use It?
by: Stephen Warren
Affiliate Marketing is having Affiliates do your
Marketing for you. What I mean by Affiliate is someone who tells people about
your product/service and you pay them for a desired response, such as a
purchase.
Affiliate Marketing is one of the best ways to get the
word out about your product/service.
The best way to pay Affiliates is pay per sale. This
means that you only have to pay your Affiliates when they actually make a sale.
This reduces your advertising costs dramatically. your Affiliates take on all
the risks so you don't have to worry about wasting your money on advertising
which may not produce any results.
Using Affiliate is a very cheap way to advertise,
however it is very effective. The software required to start up your own
Affiliate program can cost only about $50 per month.
Then after that just wait for people to start promoting
your product/service for you.
Please remember that 5% of your Affiliates will do 95%
of the selling. What I mean by this is that most of your Affiliates will just
sit there and do nothing. This can be countered if you teach them what to do,
exactly how to do it and providing everything for them so they have to do as
little work as possible.
To find out about teaching your Affiliates please see
the "How To Super Charge Your Affiliates" article
You don't have to use this form of advertising just to
sell your product or service. You can also use it to grow your opt-in mailing
list. This is discussed in another article.
How Much Should You Pay Your Affiliates
How much you pay your Affiliates really depends on how
much your product/service costs, its profit margin, how much you're willing to
give up and what action you want to take place.
Lets say that your product is priced at $100. Lets also
assume that it cost you $10 to make it. This leaves you with $90 profit.
How much of this do you want to give away to the person
that made this sale possible?
Personally, I believe that you should give a rather high
percentage of the profits back to the affiliate (Depending on how many sales
they regularly generate), because without them, you wouldn't have made that
particular sale at all, so reward them for it.
A fairly decent reward is about 50% of the revenue
generated. Your product is priced at $100 so a $50 commission is quite generous.
It really depends on your other costs (such as a mortgage) you have, which would
help decide on a fair commission to both you and the Affiliate.
Another factor which plays a part is how much additional
advertising you do, such as pay per click. For example, if you rely solely on
your Affiliates to Market for you, then you may want to reduce the commission
you pay to them to help you survive. However, you may want to pay them more, to
encourage them to send more sales you way. It really is a judgment call.
On the other hand, if you advertise in other ways
effectively, then you can afford to pay higher commissions, because you're not
putting all your eggs in one basket.
In the end it's all down to how greedy or generous you
are. The best advice I can give you is to pay the affiliate what you think
he/she deserves. Hopefully that way everyone is happy and earning their fair
share.
That is the key to a successful affiliate program.
About The Author
Stephen Warren is the creator and webmaster of
http://www.marketershandbook.com, a completely free business and marketing
resource which anyone may use.
freeserve.net@swarren30.fsnet.co.uk
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