Affiliate Revenue Information

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Affiliate Programs... A Not THAT Easy Start To Your Own Online Business



AliExpress by Alibaba.com


"Where is all the help I'm supposed to get. I have been buying ezine and classified ad builders and signing up for Echecks and Virtual credit cards. In the meantime I have no business and no ads set up. When does all this happen? Let's go here. I spent all day on this. I'm running out of time."

I kid you not, this is the sum total of an actual email that hit my inbox this week. Not only did I not know this person from Adam, this was the first and only email I had ever received from her and to this day, I have no idea what she's talking about. Presumably, she signed up for one of the affiliate programs I promote from my site and was asking, in her own inimitable style, for my help. Although I am always ready and willing to help anyone I can, this is most definitely NOT the way to go about asking for it. Needless to say, I let her know what I thought of her approach in NO uncertain terms.

The attitude displayed in this person's email to me (and she is by no means an isolated example) exemplifies why so many people fail to make a success of their online businesses. Leaving aside the utter rudeness of the approach, notice the impatience, the expectation to be up and running in a day, the HURRY, the apparent belief that real world principles such as courtesy and good manners don't apply online (they do). Think this person is going to last the distance? What kinds of tactics do you think she is capable of resorting to in pursuit of the almighty dollar?

So, let's take a realistic look at affiliate programs, what they can and can't do for your business and how to maximize your chances of creating a successful, long-term business with them.

WHAT IS AN AFFILIATE PROGRAM?

An affiliate program (also known as a reseller, associate, referral or partnership program) is essentially a revenue-sharing arrangement whereby you, the affiliate, receive payment from the owner of a product or service that you promote on their behalf.

Affiliate programs are an excellent way for the new internet entrepreneur to start an online business.

TYPES OF AFFILIATE PROGRAMS

There are various types of affiliate programs.

The most simple involves you, the affiliate, placing a banner ad, graphic or text link at your site which is linked to the site of the business you are promoting. This link is coded with your unique affiliate ID so that the site visitor is recorded at the target site as having originated from your site, thereby allowing you to be credited with the sale.

Payment is generally a fixed percentage of the sale value (commission) or "pay per click", where the affiliate is paid a certain amount for every time a site visitor clicks on the link at the affiliate's site, whether or not a sale is made.

The more sophisticated affiliate programs are multi-tier and allow the affiliate to earn commissions not only on the traffic they directly refer to the target site but also a proportion of sales generated by their sub-affiliates.

BENEFITS OF AFFILIATE PROGRAMS

The greatest benefit of affiliate programs is that when you are just starting out in your own online business you don't have to worry about creating your own product or service. You just promote someone else's and get a share of the revenue pie for your efforts.

You also don't have to concern yourself with warehousing, transport or logistics headaches. All of this is handled by the business whose products/services you are promoting. All you need concentrate on is driving traffic to that business's website. This means that a high proportion of your revenue is profit.

The owner of the product/service is also responsible for collecting payment, customer service and the myriad other details that come up on a day to day basis in running the business.

DISADVANTAGES OF AFFILIATE PROGRAMS

The main and obvious disadvantage of affiliate programs is that it is the owner of the product/service who earns the lion's share of the profit on the sale.

You're working on commission. You will NEVER earn by way of affiliate program commissions as much as you can earn by way of profits from producing and selling your own product/service.

As a result, affiliate programs represent a high opportunity cost when you consider what you could earn if you instead channeled the time and energy you spend on promoting affiliate programs into creating and promoting your own product/service.

For this reason, it does not make sound business sense to rely solely on affiliate program income for the longer term growth of your business.

Instead, think of them as a way of dipping your toe in the water when you're first getting started, and a nice little sideline once you've created your own product/service. Do NOT build your business around affiliate programs with the intention this will always be the backbone of your business. You'll be stunting your own growth if you do.

CHOOSING THE RIGHT AFFILIATE PROGRAMS FOR YOUR BUSINESS

So, keeping in mind what affiliate programs can and can't do for your business, let's turn to what you should look for when choosing an affiliate program or programs to promote in your business.

=> Synergistic Products/Services

First off, and this is a cardinal rule, only promote those programs which will allow you to create synergies with your site. This means selecting programs that naturally complement the subject matter of your site and that will therefore be of interest and relevance to your site visitors. This will ensure your prospects (ie your site visitors) are pre-qualified which will result in a relatively higher conversion ratio (the ratio of visitors to purchases) than would be the case if your traffic is untargeted (which will be the case if you promote unrelated products and services from your site.)

=> Quality In All Things

Keeping the need for synergy uppermost in mind, look for quality programs first and foremost. The last thing you want to waste your time, money and reputation on is a shoddy product or service. There are just too many quality programs out there to settle for anything less.

=< Stability of Company

Look for a company that's been around for a while and that's reputable and stable (both financially and in its management). Any reputable company will have full contact details readily available so do your research.

=> References

Look for testimonials and references from other affiliates. If the company you're interested is not forthcoming when it comes to putting you in touch with other affiliates, move on.

=> Affiliate Agreement

Look for a professional, considered and detailed affiliate agreement (contract). This shows that the company is serious about its business.

Watch out for exclusivity clauses and other restraints. Some affiliate agreements will require that you not promote competing businesses' products and services. This is not to say you should avoid such agreements. As a general rule, it is your interests not to promote competing programs anyway. Just be aware of what the agreement says on the subject to avoid getting yourself into hot water.

Look also for an agreement that treats spammers harshly. This protects not only the company but other affiliates as well. The last thing you or any other reputable affiliate needs is to have your reputation and the reputation of the product/service you are promoting besmirched by these sorts of tactics.

=> High Commissions

Promoting someone else's affiliate program necessarily requires that you divert traffic away from your site and towards someone else's. Make sure you're properly compensated with a high commission structure. And be sure to set up your link so that when the visitor clicks on it, a new browser window is opened for the target site. This at least keeps your site in front of the visitor so they can go back to your site once they've finished at the site your link has taken them to.

=> Lifetime Commissions

Look for affiliate programs that will credit you with not only THIS sale but all other sales the customer may make in the future. Many programs are set up so that the customer is identified as "yours" so that when the customer returns to the target site in three months time, the sale is recorded as having been generated by you.

=> Residual Commissions

Include programs that offer residual commissions in your portfolio. Good examples are webhosting services, autoresponder services and the like where customers sign up for a continuous service that requires periodic, regular payments. You receive periodic, regular commissions as a result.

=> Tracking of Commissions

Look for programs that allow you real-time access to your stats so you can keep easy track of your commissions.

=> Reliability of Payment

When checking with affiliate references, find out what the business's record is on paying out commissions. If they're slow or there appears to be a pattern of problems, keep looking.

=> Frequency of Payment

Make a note of payment schedules too. Some programs pay weekly, some monthly, some quarterly. Some only pay once you accumulate commissions of a certain amount. None of these arrangements are necessarily good or bad in and of themselves. Just be sure you know what to expect.

=> Programs that Require Payment Up Front

Two words: MOVE ON!

=> Affiliate Support

Finally, take a look at what support the business offers its affiliates to make sales. Do they provide resources such as sample ads, banners, logos and the like? Do they provide useful advice about maximizing your sales? A good affiliate program provides affiliates with a LOT of support in these areas.

MAKING MONEY FROM AFFILIATE PROGRAMS

OK, now you know what to look for in an affiliate program. Here's how to maximize your sales of those products and services and, therefore, your commissions:

=> Get Your Own Website

No ifs, no buts. DON'T rely on the you-beaut self-replicated job the company provides all its affiliates. Link to that site from your main site.

=> Get Your Own Domain Name

This presents a much more professional image. Many people won't give the time of day to a business that thinks so little of its prospects that the owner won't shell out 70 bucks for a domain name. So mean business and look like it.

=> Get Traffic To Your Site (Duh!)

As a rough guide, you will need at least 500 targeted unique visitors a day to your site to make reasonable money from affiliate programs.

=> You Must Have A Site That Will Attract Repeat Visitors

If your website is nothing more than a splash page consisting of little else other than banners for umpteen different affiliate programs, forget it. Your site must be worthy of your visitor's time and interest before you can even begin to think about converting that visitor into a paying customer. So create a real site with real content that will keep them coming back for more.

=> Personal Testimonials

A personal testimonial will result in more sales than a mere link or advertisement. So take the time and trouble to write a personal endorsement of the product or service you are promoting. And, of course, it goes without saying that in order to write a personal endorsement, you must know that of which you speak. NEVER promote a program you haven't first purchased yourself. If you don't think enough of your program to invest in it, how do you expect to persuade others to?

=> Promote With Your Sig File

Include a link to your site in the signature of every email you send.

=> Promote In Your Own Ezine

Finally, if you're not already publishing your own ezine or newsletter to stay in touch with your site visitors, start. It's a great way to promote not only your site but also the affiliate programs you promote from your site.

MAKING SERIOUS MONEY FROM AFFILIATE PROGRAMS

The only way of making SERIOUS money from affiliate programs is by creating your own product or service and recruiting affiliates to sell for YOU.

The affiliate program phenomenon is one of the Internet's true success stories. It provides a toe-hold for the would-be internet entrepreneur to begin a real, live business of his or her very own. But the real beauty of affiliate programs lies not in what they can do for you, as an affiliate, but what they can do for you, as a recruiter of affiliates for your own program. By all means jump on the bandwagon and start promoting other people's products to get your start. But don't wait too long to start developing your own product line. There is a ready-made salesforce numbering in the millions ready and waiting to sell it for you.

About The Author

Elena Fawkner is editor of the award-winning A Home-Based Business Online ... practical home business ideas, resources and strategies for the work-from-home entrepreneur.

http://www.fawkner.com/subscribe.html

AliExpress by Alibaba.com


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ZEEL reduces price of family pack bouquet by six rupees - TelevisionPost
ZEEL reduces price of family pack bouquet by six rupees  TelevisionPost

MUMBAI: TV broadcast major ZEE has revised the price of its Zee Family Pack and ZEE All-in-One pack. The Zee Family Pack's price has been reduced by Rs 6 ...


Viacom gets earnings boost from affiliate fees and Tom Cruise - AdAge.com
Viacom gets earnings boost from affiliate fees and Tom Cruise  AdAge.com

Viacom's ad revenue remained sluggish, declining worldwide and staying flat in North America.


Viacom reports revenue below estimates on weak advertising sales - CNBC
Viacom reports revenue below estimates on weak advertising sales  CNBC

Viacom reported a 3.7 percent fall in quarterly revenue due to a drop in domestic advertising sales and fees it collects from cable TV operators.


CBS 3Q Profit Rises on Digital Subscriptions, Affiliate Fees - Variety
CBS 3Q Profit Rises on Digital Subscriptions, Affiliate Fees  Variety

CBS said third-quarter profit rose largely on strength in revenue from affiliate and subscription fees, a testament to the company's ongoing efforts to find sources ...


Small Business Guide to Using Affiliate Programs - Business News Daily
Small Business Guide to Using Affiliate Programs  Business News Daily

When readers click on your affiliate links to products for sale, you and the seller both make money.


‘Reporting is a struggle’: To grow commerce revenue, publishers have spend time, money to manage the data - Digiday
‘Reporting is a struggle’: To grow commerce revenue, publishers have spend time, money to manage the data  Digiday

When Manish Nag joined New York Media as its first head of data in April, one of his top priorities was building a database to manage all the affiliate commerce ...


Lessons from a decade of monetising content with affiliate marketing - The Drum
Lessons from a decade of monetising content with affiliate marketing  The Drum

We've been around for over a decade offering users price comparison for telecoms and technology products. As a business, our commercial model is entirely ...


Can A Strong Q4 Help Viacom Turn Around Its Core Business In Fiscal 2019? - Forbes
Can A Strong Q4 Help Viacom Turn Around Its Core Business In Fiscal 2019?  Forbes

Viacom recently announced a stronger-than-expected Q4, as both its earnings per share and revenues came in ahead of market expectations. The company's ...


The Golden Globes red carpet is one big makeup ad - Vox
The Golden Globes red carpet is one big makeup ad  Vox

Stars, makeup artists, and brands want to maintain the perception that red carpet makeup looks happen organically. They don't.


Viacom Soars on Affiliate Revenue Forecast - Multichannel News
Viacom Soars on Affiliate Revenue Forecast  Multichannel News

On a day when the Dow Jones Industrial Average officially entered market correction territory, and despite disappointing revenue growth in its fiscal first quarter, ...


Twitch Adds New Affiliate Link, Merch Integrations To Help Creators Earn More Money - Tubefilter
Twitch Adds New Affiliate Link, Merch Integrations To Help Creators Earn More Money  Tubefilter

Twitch streamers now have several added tools to help them boost monetization, the platform unveiled this weekend at its annual TwitchCon gathering.


Marie Claire wants its fashion editors to drive e-commerce revenue - Digiday
Marie Claire wants its fashion editors to drive e-commerce revenue  Digiday

Marie Claire has launched Marie Claire Edit, an aggregator site where readers can shop from retail partners like Selfridges, Gucci, Prada, Net-a-Porter and ...


Walmart has a huge selection of deals that are guaranteed to deliver before Christmas — but time is running out - Business Insider
Walmart has a huge selection of deals that are guaranteed to deliver before Christmas — but time is running out  Business Insider

The Insider Picks team writes about stuff we think you'll like. Business Insider has affiliate partnerships, so we get a share of the revenue from your purchase.


Twitch Partners Feeling Burned After Affiliates Receive Features That Took Them Years To Earn - Kotaku
Twitch Partners Feeling Burned After Affiliates Receive Features That Took Them Years To Earn  Kotaku

There are Twitch streamers, and then there are Twitch streamers. The platform has tiers: hobbyists, affiliates, and partners. The latter two titles must be earned ...


What Will Disney's Near-Term Revenue Growth Look Like? - Forbes
What Will Disney's Near-Term Revenue Growth Look Like?  Forbes

Disney (NYSE: DIS) had a mixed first half of the calendar year, despite solid gains in core segments – as both earnings per share and revenues came ahead of ...


Disney sees Q3 year-over-year earnings growth, thanks partly to ESPN's affiliate revenue growth and - Awful Announcing
Disney sees Q3 year-over-year earnings growth, thanks partly to ESPN's affiliate revenue growth and  Awful Announcing

Disney's earnings calls have often featured questions about ESPN struggles. But not so much this time around, with ESPN seeing year-over-year growth.


Magazines Power Shop for E-Commerce Revenue This Holiday Season - Folio: - Folio Magazine
Magazines Power Shop for E-Commerce Revenue This Holiday Season - Folio:  Folio Magazine

As online and mobile shopping continues to grow, so do new opportunities for publishers.


CBS Says Q1 Profit Rises on Advertising, Affiliate and Content Revenue - Variety
CBS Says Q1 Profit Rises on Advertising, Affiliate and Content Revenue  Variety

CBS Corp. said first-quarter profit rose as revenue from advertising, *content* licensing and affiliate fees — its three main financial engines increased during the ...


How DermStore’s focus on commerce content created $5 million in revenue in 2018 - Glossy
How DermStore’s focus on commerce content created $5 million in revenue in 2018  Glossy

Though the affiliate marketing market size is small (around $7 billion) compared to search engine advertising, which is expected to hit $95 billion this year, some ...


Future buys Purch to boost US revenue - Digiday
Future buys Purch to boost US revenue  Digiday

This week U.K. specialist publisher Future announced the purchase of technology platform and publisher Purch for $132.5 million (£101 million), marking ...


Think The Wirecutter invented affiliate revenue? Meet the mom who's been doing it since 2010 - Nieman Journalism Lab at Harvard
Think The Wirecutter invented affiliate revenue? Meet the mom who's been doing it since 2010  Nieman Journalism Lab at Harvard

When The New York Times Co. acquired The Wirecutter for $30 million last fall, CEO Mark Thompson called its affiliate revenue–based business model — in ...


Simple Affiliate Marketing Strategies to Supplement Your Income - Business 2 Community
Simple Affiliate Marketing Strategies to Supplement Your Income  Business 2 Community

There's always more to do with the money you have on hand. It's even more apparent in a business setting. Budgets rule everything. If you blow your budget ...


What To Expect From Disney's Q4 Earnings - Forbes
What To Expect From Disney's Q4 Earnings  Forbes

Disney (NYSE: DIS) is scheduled to announce its fiscal fourth quarter results on Thursday, November 8. In Q3, the company's earnings per share and revenues ...


New NAD Decision Addresses Affiliate Links - Ad Law Access
New NAD Decision Addresses Affiliate Links  Ad Law Access

As part of its routine monitoring, the NAD requested substantiation for various statements that a BuzzFeed staff member had made about a moisturizer in one.


Amazon just provided a nice little reminder of why it's risky to build a journalism business on affiliate fees - Nieman Journalism Lab at Harvard
Amazon just provided a nice little reminder of why it's risky to build a journalism business on affiliate fees  Nieman Journalism Lab at Harvard

Amazon is a powerful partner, but as book publishers have learned, it can also be a fickle one.


Publishers say affiliates generate more revenue than other types of marketing - ZDNet
Publishers say affiliates generate more revenue than other types of marketing  ZDNet

A recent survey points to a bright future for affiliate marketing and social engagement.


How programmatic auctions are creeping into publishers’ commerce links - Digiday
How programmatic auctions are creeping into publishers’ commerce links  Digiday

It was only a matter of time before publishers' commerce operations started to get a little more programmatic. Over the past year or so, a number of publishers, ...


How does revenue work with YouTube, Twitch and Patreon - Polygon
How does revenue work with YouTube, Twitch and Patreon  Polygon

YouTube has a mission: help make their creators money — but not exclusively through ads. At VidCon last week, the company announced a number of new ...


Not Measuring Mobile In Affiliate Marketing? It's Time To Start - Forbes
Not Measuring Mobile In Affiliate Marketing? It's Time To Start  Forbes

Mobile advertising is measured as aggressively as desktop inventory. Except in affiliate marketing, where many brands are likely missing out on millions in ...


Best affiliate marketing programs of 2018 - TechRadar
Best affiliate marketing programs of 2018  TechRadar

Here are some great options for getting your website into the profit zone.


Cable Sees Uptick In Affiliate Fees, Broadcast Retrans Still Strong 07/24/2018 - MediaPost Communications
Cable Sees Uptick In Affiliate Fees, Broadcast Retrans Still Strong 07/24/2018  MediaPost Communications

With national TV advertising remaining flat at best this year, analysts are concerned about lower affiliate revenues in the coming periods. MoffettNathanson ...


Affiliate Marketing in 2018: What It Is and How You Can Get Started - Business 2 Community
Affiliate Marketing in 2018: What It Is and How You Can Get Started  Business 2 Community

Wake up at an ungodly hour. Drive to the office through total gridlock, streets jammed with other half-asleep commuters. Slog through email after mind-numbing ...


Affiliate Programs Made Simple: A Step-by-Step Guide For Ecommerce Sites - Business 2 Community
Affiliate Programs Made Simple: A Step-by-Step Guide For Ecommerce Sites  Business 2 Community

Getting your products into people's hands and generating new sales is tough as a new ecommerce business. Aside from organic ecommerce SEO which can ...


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