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  What's an affiliate?
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  Affiliate Payment

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What is an affiliate?

    At it's basic level to affiliate is to associate with or become closely connected with something. An affiliate program is simply a way to let you associate with an internet business. Normally in this relationship you will help advertise and send traffic to the business and they will reward you in some manner with free items, coupons, or money. The image below illustrates well the relationship.

    As you can see, there are two main parts to the affiliate relationship. The compensation to the affiliate and the transfer of customers or leads to the business. We'll cover these two in detail later. From the business standpoint, one of the things that separates this from other means of advertising is the relationship between the two processes. In normal advertising you pay a fee and you may get leads that earn you millions or you may get nothing. In an affiliate relationship you pay in proportion to the leads generated or the revenue earned (sales).

    For the affiliate this means that you have almost unlimited revenue potential, but also the potential to earn nothing if you are unable to generate sales or leads for the company. For that reason, it is important for potential affiliates to create a plan for their programs. Signing up as an affiliate and dropping a link on a page about the family dog is not going to generate leads for most businesses or generate much money for the affiliate.

    Continue reading how online affiliate programs work?






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