| Affiliate programs are a type of partnership | | | | also have a blog which generates so much |
| between a seller and an advertiser. | | | | traffic that it pays of to direct visitors to |
| | | | a seller's website. A blog can be created for |
| The advertiser directs visitors to a | | | | free and so is the choice of many affiliates. |
| seller's website and for this the advertiser | | | | Finally, an affiliate may direct traffic to a |
| receives a percentage of the revenue | | | | seller's website by advertising using |
| generated from the visitors coming from the | | | | banners, text ads or sponsored links as |
| advertiser. The advertiser is said to be an | | | | available through Google's AdWords, Overture |
| affiliate of the seller.The percentage paid | | | | or similar services. If the affiliate |
| by the seller to the affiliate is set by the | | | | attracts visitors from such advertising only, |
| seller and varies depending on the type of | | | | the affiliate does not need to create a |
| products, the profit margin on the products | | | | website or blog and so does not need to |
| sold and how keen the seller is to promote | | | | create any content for such.Affiliate |
| his or her products through affiliates. | | | | programs and paying of commissions to the |
| Percentages anywhere between 10% and 75% are | | | | affiliate can be supported by third parties |
| common.The advantage for the seller includes | | | | or be handled directly between the seller and |
| additional sales and that the seller knows | | | | the affiliate. If paying of commission is |
| exactly what margin he or she will have on | | | | handled directly between seller and |
| products sold to visitors coming from | | | | affiliate, the affiliate normally needs to |
| affiliates. If the seller markets his or her | | | | sign up for the affiliate program on the |
| products through advertising using sponsored | | | | seller's website. In case of third parties |
| links, banners, text ads or similar, the | | | | handling payment of commission it is common |
| seller does not know before starting a | | | | that no agreement needs to be set up between |
| campaign what number of sales will be | | | | the affiliate and the seller. The third party |
| generated per dollar spent on advertising. | | | | however will then have separate agreements |
| The seller thus does not know if the campaign | | | | with the seller and with the affiliate. |
| pays off or not. With sales generated from | | | | Commissions are normally paid by cheque but |
| affiliates the seller knows exactly what | | | | in some cases it is paid by PayPal or wire |
| percentage of revenue from a sale goes to the | | | | transfer.Technically affiliate programs are |
| affiliate and therefore knows exactly how | | | | normally supported so a visitor's IP address |
| much is left for the seller. A seller who | | | | is recorded when the visitor follows a link |
| offers an affiliate program can have hundreds | | | | provided by the affiliate to the seller's |
| or even thousands of affiliates.For the | | | | website. If a purchase is made and payment is |
| affiliate participation in an affiliate | | | | collected, the visitor's IP address is |
| program allows the affiliate to make money | | | | determined again, and if it matches that |
| without having a product to sell. For the | | | | recorded when a link was followed, the |
| affiliate, revenue can be generated simply | | | | commission can be paid instantly. In some |
| from attracting visitors. The affiliate does | | | | cases a "cookie" is stored on a visitor's |
| not need to worry about procuring or shipping | | | | computer when a link is followed and this is |
| products or about providing any kind of | | | | used to identify the source of the visitor.In |
| support to the buyer. The affiliate has a | | | | short, affiliate programs allow sellers and |
| wide range of choices for how to attract | | | | affiliates to share the revenue generated for |
| visitors. In a common setup, the affiliate | | | | sales from sellers' websites and can generate |
| has a website from which visitors can be sent | | | | considerable income for both parties. |
| to the seller's website. The affiliate may | | | | |