Certified Online Casinos Guide

By Joe Myers

Level: May 17th 2007
For many people it is difficult to understand how affiliate programs work. To make it simpler we will present you with the terminology:

An affiliate is a person/website who promotes certain products in order to make money. A merchant is the person who owns the product and some of the money he/she makes shares it with the affiliate, depending on the affiliate’s productivity. You can drive traffic to your website through affiliate programs.

The affiliate programs are of 3 types:

Pay Per Click: this is when the merchant compensates the affiliate for sending traffic to his website. One of the most popular PPC affiliate programs is AdSense.

Pay Per Sale: this is when the merchant compensates the affiliate if the affiliate’s referral has generated a sale or purchase.

Pay Per Lead: this is when the merchant will ay for a qualified or unqualified lead. This type of affiliate program is used the least.

Affiliate websites usually provide high quality content, information, and entertainment. The online merchants sell various products and services online. The affiliate programs allow affiliates to make some money based on the visitors to your site who have clicked a link on another site to get to yours.

Some of these programs will pay a percentage of the sale if they buyer has "clicked through" your site, while others will pay an amount of money for each click through. An affiliate program will allow you to track which affiliate sends you the most traffic, and you can pay those affiliates for every products you sold to a person send by them.

Make sure that your affiliate’s site is not full of banner ads which may cover your link and also may annoy the customers. Afiliates use the affiliate programs to leverage their traffic in order to make some money, while the merchants use them to send their products.

An affiliate can use the program to find out how many of the people his site has sent, bought something from the merchant, which means he can identify how much money he will receive. This is very useful for the affiliates because they can concentrate on the traffic that generates the most revenue.

If you want to be a good affiliate you must have lots of traffic or your content must target a specific audience. Also it is proven that you will have a higher conversion rate if your content is similar to the merchant’s one.

You must decide what kind of traffic system you are going to use: HTML code or cookies. The HTML code is placed in a shopping cart or on the 'order confirmation'/'thank you' page, and the cookies are created after a client presses on a banner ad. The cookies can be stopped by cookie killers, and that is very often a problem.

Software vendors have an advantage over other types of merchants because they can better control the compensation. They can make sure that the affiliates will be paid, even if the client downloads trial software.

The trial software contains a buy now button, and that buttons have the ids of the affiliate imbedded in the download. You can be more successful if you combine the tracking methods and don’t use just a single method.

A merchant must understand that he will not have success if he doesn't treat his affiliates fairly. The affiliates work very hard to send traffic to the merchant and the merchant must compensate this. Just like in a relationship, both partners must get involved in order to make the relationship work.
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