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Understanding Affiliate Programs
Affiliate programs are commonly misunderstood, in order to understand affiliate programs lets start with terminology. For clarification purposes, an affiliate is defined as any "referrer" or website that promotes a product in an effort to earn revenue. A merchant is defined as someone who owns a product and is sharing revenues with an affiliate based on the affiliate's performance. Affiliate programs can drive targeted traffic to your website. There are 3 basic affiliate programs, though only the first two are commonly used. Pay Per Click - this is when an affiliate is compensated for sending traffic to the merchant. (AdSense is an example of PPC affiliate program) Pay Per Sale - this is when the affiliate is compensated by the merchant if the referral generates a sale or purchase. Pay Per Lead - this is when the merchant agrees to pay for a qualified (or sometimes unqualified lead), which is very uncommon because it is subjective and up to the merchant. Affiliate websites tend to provide information, entertainment, and content services to their customers. The online merchants sell products, goods and services online. These are programs permitting affiliates to earn money based on the visitors to your site who click through to another's website. Some pay a token amount for the click through and others provide a percentage of sales when a visitor "clicks through" to your site and buys a product or service on the other party's site. This could represent a value added service to your visitors. Affiliate programs allow you to pay and track incentives from other websites that send web surfers, leads or paying customers to your website. Commissions based on purchases made by traffic sent from the referring website can be paid. Besides a commission, an affiliate can receive a flat fee, or other incentives for all valid transactions it refers that generate a sale or lead. Be careful that the affiliate's web page is not cluttered with banner ads that may crowd out your link, or that be annoying to customers. Affiliate programs enable affiliates to leverage their traffic and customer base in order to profit from e-commerce while merchants benefit from increased exposure and sales. Commonly traffic to merchant sites is measured and affiliates can clearly see conversion rates. Meaning, they track the percentage of people they are referring, and how much of it results in earned revenue. If the affiliate finds a very low conversion, they will find a better way to monetize that traffic, quite possibly with a competing merchant product. In order to be a successful affiliate, the affiliate site needs to either have tons of traffic or target a specific audience, frequently one untapped by the merchant. It has been my experience, the closer the affiliate site content resembles the merchant products, the higher the likelihood of a good conversion rate. Once you are committed to the idea of affiliates, the next step is to determine the kind of tracking system you are going to use. Sales can be tracked by HTML code, which is placed in a shopping cart or on the 'order confirmation'/'thank you' page, and cookies, which are created after the customers click on a banner ad. Cookie killers have been a problem for the affiliate industry. Software vendors have an advantage over other merchants in that new technologies allow software developers to better control compensation. Vendors can 'wrap' their software insuring that their affiliates are compensated for referrals, even if the customer downloads a trial version prior to purchasing. Buy now buttons in the software have affiliate ids imbedded in the download. Combined tracking systems have more success than those that rely on a single tracking technology. In order to develop a successful affiliate network, merchants must realize that affiliates spend ad dollars on site, and product promotion. If the affiliate is not compensated fairly they will not remain in the merchants network. The bottom line is that affiliate relationships are partnerships, when both sides feel the situation is fair and equitable the relationship will be a success. About the Author: Sharon Housley manages marketing for NotePage, Inc. http://www.notepage.net a company specializing in alphanumeric paging, SMS and wireless messaging software solutions. Other sites by Sharon can be found at http://www.feedforall.com, http://www.softwaremarketingresource.com and http://www.small-business-software.net
Latest News:Site: Yahoo! News Search Results for news Myanmar's Suu Kyi to get family letters, news mags (Reuters via Yahoo! News) Detained Myanmar opposition leader Aung San Suu Kyi has managed to wring small concessions from the ruling generals in the form of letters from her family and some international news magazines, her lawyer said on Friday. JCDecaux in talks for News Outdoor Group in Russia (AP via Yahoo! News) French outdoor advertising firm JCDecaux SA said Thursday it is negotiating to buy Russian rival News Outdoor Group from global media company News Corp. News Corp tightens grip on Premiere with new CEO (Reuters via Yahoo! News) Rupert Murdoch tightened his grip on German pay-TV broadcaster Premiere by appointing News Corp executive Mark Williams as CEO in a move to get the company back on track. SEC Looks Into UAL Stock Scare; Implications For Online News? (CBS News) A ton of digits have been devoted to this in other spots but the SEC's decision to investigate takes it to another level. The backstory: a six-year-old news story about UAL declaring bankruptcy made it into the Tribune-owned Sun-Sentinel 's current news flow, was picked up by a Google (NSDQ: GOOG) News bot and, via a reporter for a newsletter, made it onto Bloomberg News. After a lot of buck ... JCDecaux and News Corp. in talks to combine outdoor ad groups (International Herald Tribune) The News Corp. chief executive, Rupert Murdoch, has recently expressed nervousness about investments in Russia, where News Outdoor generated the bulk of its revenue last year. Asia Markets: Financials in rally mode, as Lehman news helps (Market Watch) Asian markets advanced early Friday, with financials such as Mizuho Financial Group and Macquarie Group rallying after a rebound on Wall Street and on news Lehman Brothers was looking for a buyer. SEC Looks Into UAL Stock Scare; Implications For Online News? (paidContent.org via Yahoo! Finance) A ton of digits have been devoted to this in other spots but the SEC's decision to investigate takes it to another level. The backstory: a six-year-old news story about UAL declaring bankruptcy made it into the Tribune-owned Sun-Sentinel's current news flow, was picked up by a Google News bot and, via a reporter for a newsletter, made it onto Bloomberg News. News Corp says Mark Williams interim Premiere CEO (Reuters via Yahoo! News) News Corp. executive Mark Williams has taken over as chief executive of German pay-TV broadcaster Premiere in an interim capacity, News Corp. said after the move led to renewed takeover speculation. News Corp. says Mark Williams interim Premiere CEO (Reuters via Yahoo! News) Mark Williams, a News Corp. executive named late on Wednesday as chief executive of German pay-TV broadcaster Premiere, has taken over in an interim capacity, a News Corp. spokeswoman said on Thursday. JCDecaux in talks to buy News Corp. billboard unit (AP via Yahoo! Finance) In a deal that would create the world's largest outdoor advertising company, French conglomerate JCDecaux SA said Thursday that it is in talks to buy Russian rival News Outdoor Group from global media company News Corp. Site: news - Google News Palm Shares Soar As New Smartphone Wins Wall Street Praise - CNNMoney.com
MORE RESOURCES: Site: Yahoo! News Search Results for affiliate revenue Top 1,000 Shoppers Will Share in 25% of Total Site Profit/Revenue (PRWeb) Top 1,000 shoppers will share in 25% of total profit generated by epricesearch.com. Internet entrepreneur Kevin Adams of Dallas, Texas provides a fundamentally better way for consumers to shop. A new website set to change the way internet advertising revenue is distributed by giving a large portion back to the shoppers/members. (PRWeb Sep 11, 2008) Read the full story at ... Top 1,000 Shoppers Will Share in 25% of Total Site Profit/Revenue (PRWeb via Yahoo! News) Top 1,000 shoppers will share in 25% of total profit generated by epricesearch.com. Internet entrepreneur Kevin Adams of Dallas, Texas provides a fundamentally better way for consumers to shop. A new website set to change the way internet advertising revenue is distributed by giving a large portion back to the shoppers/members. AsiaTiv Offers White Label Affiliate Program for Travel Partners (PRWeb via Yahoo! News) AsiaTiv.com, a highly popular hotel reservations portal offering a lowest rate guarantee, has announced that it is now taking an even more active role in its goal of helping its clients to succeed by providing a high-performance room reservation system built on a foundation of flexibility and scalability through a new affiliate program offering fully managed white label services. Fitch Rates $90MM ThedaCare, Inc. (Wisconsin) 2008 Bonds 'AA-'; Outlook Stable (Centre Daily Times) Fitch Ratings has assigned an 'AA-' underlying rating to approximately $90 million of Wisconsin Health and Educational Facilities Authority revenue bonds, series 2008, issued on behalf of ThedaCare, Inc. (ThedaCare). Additionally, Fitch assigns an 'AA-' underlying rating to approximately $175 million of outstanding revenue bonds issued on behalf of ThedaCare. The Rating Outlook is Stable. Fitch Rates $123.270MM Oklahoma Capital Improvement Auth State Facilities VRDBs 2006D 'AA-/F1+' (Centre Daily Times) Fitch Ratings assigns a rating of 'AA-/F1+' to the $123,270,000 Oklahoma Capital Improvement Authority state facilities revenue bonds (Higher Education Projects) multi-modal variable rate demand, series 2006D, consisting of: Fitch Rates NCMC's (Colorado) $55.5MM Revs 'A+'; Outlook Stable (Centre Daily Times) Fitch Ratings has assigned an 'A+' underlying rating to the Colorado Health Facilities Authority's approximately $55.5 million hospital revenue bonds (NCMC, Inc. Project) series 2008A&B. The 2008A&B bonds are expected to sell via negotiation during the week of Oct. 14 and will be issued as variable-rate demand bonds backed by a letter of credit. In addition, Fitch has affirmed the underlying ... Fitch Confirms Intermountain Power Agency VRBs, Ser 85E & F Maturing 2014 & 2015 'AA-/F1+' (Centre Daily Times) Fitch Ratings confirms the 'AA-/F1+' rating assigned to the Intermountain Power Agency (IPA) variable rate power supply revenue and refunding bonds, 1985 series E maturing July 1, 2014, and variable rate power supply revenue and refunding bonds, 1985 series F maturing July 1, 2015. The confirmation of the rating is in connection with a substitution of the standby bond purchase agreement (SBPA) ... Fitch Rates Indiana Municipal Power Agency's 2008A $30MM Rev Bonds 'A+'; Outlook Stable (Centre Daily Times) Fitch has assigned an 'A+' rating to Indiana Municipal Power Agency's (IMPA) $30 million power supply system revenue bonds, series 2008A. Fitch also affirmed the 'A+' rating on IMPA's $1 billion of outstanding parity power supply system revenue bonds. The 20-year fixed rate bonds are scheduled to price Sept. 25. Proceeds from the series 2007A bonds will fund capital improvements to IMPA's ... Fitch Rts $397MM AZ Health Fac Auth Revs (Banner Health), Series 2008 E-H 'AA+/F1+' (Centre Daily Times) Fitch Ratings assigns an 'AA+/F1+'rating to the following series of Arizona Health Facilities Authority revenue bonds (Banner Health) $124,195,000 weekly rate securities: Fitch Rates $90MM ThedaCare, Inc. (Wisconsin) 2008 Bonds 'AA-'; Outlook Stable (Business Wire via Yahoo! Finance) NEW YORK----Fitch Ratings has assigned an 'AA-' underlying rating to approximately $90 million of Wisconsin Health and Educational Facilities Authority revenue bonds, series 2008, issued on behalf of ThedaCare, Inc. . Site: affiliate revenue - Google News Fitch downgrades YRC credit on economy concerns - Forbes
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