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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Square Brought in Over $166 Million Through Bitcoin Sales Last Year  CoinDesk

Mobile payments firm Square has reported over $166 million in revenue from bitcoin sales last year. The company filed its financial results for Q4 2018 with the ...


TEGNA (TGNA) Q4 Earnings & Revenues Increase Year Over Year - Yahoo Finance
TEGNA (TGNA) Q4 Earnings & Revenues Increase Year Over Year  Yahoo Finance

TEGNA Inc. TGNA reported fourth-quarter fiscal 2018 non-GAAP earnings of 74 cents per share, which beat the Zacks Consensus Estimate by 2 cents.


Affiliate Software Market: By Current Industry Status,Growth Opportunities, Top Key Players, Target Audience And Forecast To 2023 - The Newsmates
Affiliate Software Market: By Current Industry Status,Growth Opportunities, Top Key Players, Target Audience And Forecast To 2023  The Newsmates

Affiliate Software Market Report Provide Analysis of Affiliate Software industry on the basis of Current Market trends, Product type, Top Manufacturers and variety ...


8 Reasons Why Small Businesses Should Use Affiliate Marketing - Business.com
8 Reasons Why Small Businesses Should Use Affiliate Marketing  Business.com

Marketing is no longer what you say to your customers, it's what your customers say to one another about your small business. One simple way to get more ...


Cathay Pacific outlook: HK Express & runway 3 are golden opportunities - CAPA - Centre for Aviation
Cathay Pacific outlook: HK Express & runway 3 are golden opportunities  CAPA - Centre for Aviation

Hong Kong's aviation market is approaching an important juncture as Cathay Pacific prepares to acquire the low cost airline HK Express and starts to consider ...


Apple’s plans to cut apps out of its affiliate program may shut down independent iOS news sites - The Verge
Apple’s plans to cut apps out of its affiliate program may shut down independent iOS news sites  The Verge

Today, Apple announced that it plans to remove apps and in-app purchases from its iTunes Affiliate Program by October 1st, depriving independent news sites ...


Viacom forecasts growth rebound in U.S. ad sales, affiliate revenue - Reuters
Viacom forecasts growth rebound in U.S. ad sales, affiliate revenue  Reuters

Viacom Inc , in tough merger talks with CBS Corp , said on Wednesday it expects a return to growth in domestic ad sales in the fourth quarter and from revenue ...


Overstock Delays E-Commerce Business Sale, Deferring Cash for Crypto Ventures - CoinDesk
Overstock Delays E-Commerce Business Sale, Deferring Cash for Crypto Ventures  CoinDesk

Overstock has put off plans to sell its flagship retail business, delaying a large cash infusion that it was hoping to get for its portfolio of blockchain ventures.


Fortune 500 Company Avnet Works With BitBay to Add Bitcoin, Bitcoin Cash Payment Option - Cointelegraph
Fortune 500 Company Avnet Works With BitBay to Add Bitcoin, Bitcoin Cash Payment Option  Cointelegraph

News. Avnet, Inc, one of the world's largest distributors of electronic components and technology solutions providers, has announced a collaboration with crypto ...


Layoffs expected as WarnerMedia reorganizes its leadership team after AT&T acquisition - CNBC
Layoffs expected as WarnerMedia reorganizes its leadership team after AT&T acquisition  CNBC

WarnerMedia announced a new organizational model and leadership team Monday in hopes of advancing its *content* development. The Wall Street Journal, ...


Decentralized Payment Processor BTCPay Adds New Invoicing Options - Bitcoin Magazine
Decentralized Payment Processor BTCPay Adds New Invoicing Options  Bitcoin Magazine

Decentralized payment processing *service* BTCPay Server announced a new *service* available through their platform: a way to request payments by simply ...


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 ...


Ebang Reveals Plans to Produce 400,000 Bitcoin Mining Units in 2019 - Bitcoin Magazine
Ebang Reveals Plans to Produce 400,000 Bitcoin Mining Units in 2019  Bitcoin Magazine

Ebang, one of China's top manufacturers of bitcoin miners, is planning to produce 400,000 mining machines in 2019. On February 22, 2019, Ebang reportedly ...


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.


‘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 ...


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

Last year's predictable flow of holiday gift guides and affiliate links from major media brands has become a downright tsunami of deal brokering in the weeks ...


Why the New York Times, BuzzFeed, and more help you find the best - Vox.com
Why the New York Times, BuzzFeed, and more help you find the best  Vox.com

The past decade has seen a flurry of growth in the product review space, with the launch of publications like Wirecutter, Best Products, New York magazine's the ...


IAC-owned publishing company Dotdash grew revenue by 44 percent last year - TechCrunch
IAC-owned publishing company Dotdash grew revenue by 44 percent last year  TechCrunch

Holding company IAC just released its fourth quarter earnings report, which includes positive numbers for Dotdash, the rebranded company formerly known as ...


Viacom Earnings Beat Estimates, Film Unit Loss Narrows - Hollywood Reporter
Viacom Earnings Beat Estimates, Film Unit Loss Narrows  Hollywood Reporter

Viacom on Tuesday posted better-than-expected fiscal first-quarter earnings, but revenue fell shy of Wall Street estimates.


How The Knot uses content to grow consumer revenue three ways - Digiday
How The Knot uses content to grow consumer revenue three ways  Digiday

Couples' wedding needs haven't changed much over the years. But as digital advertising has become harder to come by, wedding-focused publisher The Knot ...


Report Claims That “Sextortionists” Absconded With Over $300,000 in Crypto in 2018 - Bitcoin Magazine
Report Claims That “Sextortionists” Absconded With Over $300,000 in Crypto in 2018  Bitcoin Magazine

Most cyberattacks in the crypto space involve hackers finding a way around the security of crypto exchange platforms and gaining access to users' funds.


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.


Viacom's Q3 2018 Earnings Demonstrate Turnaround, Evolution Into Global Multi-Platform Entertainment Company - Viacom Corporate
Viacom's Q3 2018 Earnings Demonstrate Turnaround, Evolution Into Global Multi-Platform Entertainment Company  Viacom Corporate

Viacom released its third quarter 2018 financial results today, articulating progress on its turnaround and detailing Viacom's evolution beyond its linear roots and ...


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 ...


Viacom's Netflix deal highlights content strategy; earnings mixed - Reuters
Viacom's Netflix deal highlights content strategy; earnings mixed  Reuters

(Reuters) - Viacom Inc announced another film production deal with Netflix Inc through its Nickelodeon kids division, fleshing out a strategy to produce more ...


Fox Boycott Push Faces Tough Reality: Ad Revenue Isn’t Essential - Bloomberg
Fox Boycott Push Faces Tough Reality: Ad Revenue Isn’t Essential  Bloomberg

Activists seeking an advertising boycott at Fox News face a conundrum: The network's main source of revenue comes from cable subscribers, making it harder to ...


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 ...


6 Books on Sleep Training, So You Can Finally — Maybe — Get Some F*cking Rest - POPSUGAR
6 Books on Sleep Training, So You Can Finally — Maybe — Get Some F*cking Rest  POPSUGAR

Whether you're in your third trimester and using the time to get caught up on important parenting books, or have just brought your little bundle home from the.


How to Build a Profitable Business Online by Selling Nothing - Entrepreneur
How to Build a Profitable Business Online by Selling Nothing  Entrepreneur

Learn three simple strategies to help you stack on more revenue without the headaches of fulfillment and customer support.


Princeton study finds very few affiliate marketers make required disclosures on YouTube and Pinterest - TechCrunch
Princeton study finds very few affiliate marketers make required disclosures on YouTube and Pinterest  TechCrunch

Convincing humans to buy products is a massive business called marketing, and few areas of marketing are growing as fast as influencer marketing. Influencers ...


How to Kick-Start Your Affiliate Strategy in 2019 - PerformanceIN
How to Kick-Start Your Affiliate Strategy in 2019  PerformanceIN

All Inclusive Marketing CEO Sarah Bundy shares her top tips to kick start your affiliate marketing strategy in 2019.


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 ...


Apple Kills App Store Affiliate Program (and Developers Should Worry) - Dice Insights
Apple Kills App Store Affiliate Program (and Developers Should Worry)  Dice Insights

Apple is killing its app store affiliate program, designed to incentivize websites into promoting apps. Now the company says it's better than outside influencers.


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 ...


Understanding the not-so-glamorous hidden gem of travel marketing - PhocusWire
Understanding the not-so-glamorous hidden gem of travel marketing  PhocusWire

Affiliate marketing is a blind spot for the travel industry.


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