Jump to the following topics:

1. What is an affiliate program?
2. Features of an affiliate program.
3. Promoting the products or services. 
4. Resources.
5. Starting your own affiliate program. 

What is an affiliate program?  It is an agreement in which a website owner displays an ad for another company, in exchange for a commission on the resulting sales. Affiliate programs are also called associate programs, referral programs, and bounty programs.

Features of an affiliate program.

1. The price. There is usually no fee to join an affiliate program. If there is a joining fee, we can consider that this affiliate program might be a scam.
2. The revenue. Consider these issues:
   • Percentage of commission. For example, the company might offer a 5% commission, i.e., 5% of the price of the goods or services.
   • Cost of products or services. For example, if the company sells a $500 software package, our commission would be higher than it would be for a $20 software package.
   • Payment in cash, merchandise, or services. In some programs, we are not paid in cash; instead the company offers the dollar-equivalent in the company's goods or services; for example, we would receive $50 worth of CDs instead of $50 in cash. Other programs offer a choice: we can accept our payment in cash or the company's goods or services.
   • Payment in discounts. Some affiliate programs allow us to purchase the company's goods or services through the affiliate program; thus, when we buy a $100 product, we receive a commission on our own purchase, and so we are essentially paying $100 minus 10% (or whatever the commission percentage might be). Other affiliate programs do not allow their affiliates to purchase goods or services through the affiliate program.
   • Payment for specific products. For example:
     • The company might offer an affiliate program for its videos only; if one of our visitors jumps to the company's site and buys a book instead, we will receive no commission.
     • The company might pay its regular commission if we have a link from our site to a specific product (e.g., a specific video which is displayed on its own page at the company's site); if our visitor jumps to that specific page, but then wanders around the site and purchases a different product, we will receive a lesser commission (e.g., 5% instead of 15%).
   • The pay-period. At the end of each period, we receive a check for our commission.
     • The period could be based on a calendar. For example, we could be paid monthly or quarterly.
     • The period could be based on a calendar and the amount. For example, we could be paid monthly if our commission exceeds $100; otherwise, the amount will be carried over into the next month, until the total is $100. (Some affiliate programs have very high minimums; we can be suspicious that the company might simply want us to advertise their product for free, and they know that we will probably never achieve that minimum, and so they will never have pay us anything.)
   • The amount of time in which a purchase must occur. Different companies have different policies:
     • In some programs, we will receive a commission only if the customer jumps directly from our website to the company's website, and then makes a purchase while there. If, instead, the customer leaves the site without making a purchase, but then comes back later to make a purchase, we will not receive a commission.
     • In other programs, the customer receives a cookie at the company's website; thereafter, we will receive a commission on any of the customer's purchases for the next 30 days.
     • In other programs, there is no time limit. We will continue to receive commissions from all of the the customer's future purchases.
     • Instead of a time limit, there could be a purchase limit. We will receive commissions on the first 10 purchases, regardless of the length of time in which those purchases occur.
3. The appropriateness for our site. We are likely to earn the most revenue if the affiliate program offers products or services which are targeted toward our visitors. For example, if our website features our music recording studio, our visitors are likely to be interested in music-oriented affiliate programs, e.g., a CD retailer.
4. The contract. Be certain that the affiliate program has a contract. Read the contract carefully, and be aware of any changes which might occur later in the program. If the contract doesn't suit you, ask whether it can be modified.
5. Recommendations. Ask other members whether the affiliate program is worthwhile. Does the program generate significant sales? Does the company pay the full amount, on time?  
6. Support. By phone or email? Quick responses? 24/7?
7. Availability of advertising materials. Some companies will help us to advertise their product or service by providing banners and logos -- or even an entire, ready-made website with our name on it.
8. The quality of the product or service. A good product or service will produce more commissions, and it will reflect on our judgment and our consideration for our own customers. To be certain that the company actually fulfills orders, place an order yourself.
9. Exclusivity. Some companies will not allow us to join the affiliate programs of the company's competitors; for example, we could not have banners for the affiliate programs of two different online bookstores.
10. Tracking. We need to know whether the company is paying us for all of the referrals, i.e., the number of sales, or the number of click-throughs from our website to theirs. We can keep your own statistics, and then compare them to the statistics which are reported by the company. The company might provide statistics in various ways:
    • A web page where we can check our statistics in real time.
    • A periodic email which reports the statistics. We receive an email on a regular basis -- daily, weekly, or monthly.
    • An email which reports individual sales. We receive an email every time a sales occurs.
    • A report from a third party. Some companies have the services of an auditor, who monitors sales activity, and then reports it to us.

Promoting the products or services. An affiliate program will probably be unprofitable for us if we merely put a link from our page to the company's site; instead, we can actively promote the products or services. However, we do not have to present an entire sales pitch on our site; the purpose of the promotion is only to encourage our visitors to click on a link to the company's site where the complete information will be presented.

1. We can give descriptions of the products or services. We could use the company's descriptions, or could might write our own. (We might be required to get permission to use our own descriptions.)
2. We can explain the value of the products or services.
3. We can give reviews and testimonials. These comments can be gathered from our own experiences, and from the experiences of other people.
4. We can present illustrations of the products or services. With permission from the company, we can display photos and other graphics from the company's website.  
5. We can create an entire page for each product or service. However, this might be a duplication of effort, if the same information is at the company's site.

Resources. These are lists of affiliate programs. We can find others by searching in a search engine.

1. Lists of affiliate programs.
   • 2-Tier.
   • Affiliateguide.com.
   • AffiliateZone.com.
   • Associate-it.com.
   • Associatecash.com. 
   • Associateprograms.com.
   • Affiliate Programs Directory.  
   • ClickQuick.
   • ClicksLink.  
   • Click Trade.
   • Commission Junction.
   • Intercommission.  
   • Kelseypub.com.
   • Link Exchange Affiliate Programs. (Also called "Revenue Avenue.")
   • LinkShare.
   • Mark Welch.
   • Money Search.  
   • Networx.
   • OnlineBusiness.
   • Partnerprogramme.com. 
   • Refer-it.
   • Revenews.  
   • Searchpoint.
   • Sitecash.com.
2. Other directories of affiliate-program directories.  
   • Adbility.  

Starting your own affiliate program. This book does not give instructions for starting an affiliate program, but I am listing the URLs of websites which do have instructions.

1. Info about starting an affiliate program.
   • Goldrush Affiliate Tracking Systems.
2. Companies which will manage your affiliate program.
   • Affiliate Zone.
   • ClickTrade. 
   • Commission Junction.