Do Affiliate Marketing Programs workAre Affiliate Marketing Programs Working?
Well, quite simply, yes, affiliate marketing really works.
What does an affiliate program do?
Editorial note: This paper was initially written by Web Marketing Today. What you probably know is what is referred to as an "Affiliate Program" or "Affiliate Program" is a term used to describe a vendor that will pay you (the "Affiliate") for linking from your site to its site. Normally, the affiliate is only payed if the trader makes an effective purchase based on your affiliate account number.
These types of advertisements (and it is advertising) are referred to as pay per actions ( "PPAs") because the affiliate is not paying for wearing the merchant's ad links or graphics on their website, but only when a user carries out a particular activity (visits, filling out a contact sheet, buying). Affiliate Program methodology was developed by Amazon.com.
In order to give you an impression of how this works in practice, I will briefly describe the Amazon.com programme. As an affiliate, you register on their website and receive the ID of an employee. Shortly before this is the ASIN (Amazon Standards Item Number), which for volumes corresponds to the ISBN (International Standards Book Number, a clear number associated with each volume and issue published).
Clicking on this hyperlink will program the Amazon.com web servers to send the user to the web page for the product with this ISBN number. Simultaneously, my employee's ID is logged with the visitor's meeting ID (any number allocated to each user each visit to the site) so that when the user makes a buy in that meeting, the buy is added to my account.
Whilst each retailer selects his own system of payments, Amazon.com is currently working (subject to change): When my visitors buy exactly the product I'm linking to, I get 15% of the sale value of the product. When my visitors get to the Amazon.com site, start looking around and end up purchasing another copy, I get 5% of the sale of it.
Nowadays, the e-commerce books, regular $39.95, is on offer for 30% discount or $27.97. When you bought it from my hyperlink, I'd earn 15% of $27. 97 or $4.20. I would earn 5% of $27. 97 or $1.40 if you bought the product after you came from my site via another one.
Part of the reason why affiliate programs are so favorite is that they provide a win-win for merchants and affiliates. Reseller's costs of promoting a particular item are (largely) restricted to the amount of money it pays a partner, and the Reseller only has to make a payment when a sale is actually made.
It' much better than advert banners, where the retailer will pay whether a buy takes place or not. Indeed, the amount that an affiliate receives for a buy through an affiliate referral is probably only 10% to 20% of the costs of that sell through ad banners (which calculates the costs per 1000 CPM ads).
What is more, if your visitors like Amazon.com, they are likely to go directly there, the next times they want to buy a product, and Amazon.com may have won a client for a living. Of course, if the same user uses another hyperlink on your site to buy another product, you will also receive a refund for that sale.
For more information on affiliate programs from a merchant's perspective, see Web Commerce Today News, Issue 8, "A Merchant's Primer of Affiliate Programs" (http://www.webmarketingtoday.com/wct1/issue8. htm), where I describe how to create such a programs. In order to be real, you need to see the affiliate earnings programme as a great reward for your primary earning power, not the primary one.
Actually, only a few websites are generating enough revenue to make a fortune with affiliate programs.