Internet Users Hbk - Chapter 10a What are Affiliate, Pyramid and MLM Programs?
Chapter 10a. What are Affiliate, Pyramid and MLM Programs?Welcome to network marketing. In this section you will see that almost anything that can be sold; can be sold online. Find out the differences between the three online networks, legitimate Affiliate, Affiliate Multi-Tier and MLM and the illegal Pyramid schemes.
Trying to rank these programs, as to which is best for you, is difficult because most site owners are selling their own affiliations or MLM.
Learn the differences between each scheme. What legitimate ways to earn and be successful online are? As in the previous Chapter, find something of interest to you
TIP: As you review the various materials and references, you may note that many references are still confused and treat any multi-tier program or MLM as a pyramid – it is not, as we hope to clarify for you herein. Again, as in the previous section, try to find something that interests you and do your own due diligence.
10.1 What Is An Affiliate Program?See link for illustration, or download the Chapter 10 file Wikipedia
From the illustration, you should be able to see that the affiliate is the middle man/woman that exists between the customer and the seller. Other names include associate, broker, agent, dealer, etc.
10.2 Affiliate ProgramsAffiliate program marketing is one of the best ways to learn how to make money on the Internet and to make a lot of money with. There are thousands and thousands of ordinary people, who are making an extraordinary living from affiliate program marketing.
For the newbie’s affiliate program marketing is when you go to a company A, who sells a product or service. You complete the quick application process. The company approves your application. The company provides you with a unique link. This link contains your own unique affiliate ID. It is up to you to market this product and when you make a sale you get a commission on the sale. Don’t worry about how to make a sale. It can be done without moving from your couch. To join the affiliate marketing program is free.
One of the things you may be wondering about is where do I find these companies to become affiliated to? The best way is to go to a search engine on the net and type in Affiliate program marketing directories.
You will find thousands and thousands of companies who would kill to get you to market their products or services. The one that I like and use is at clickbank. It has a great selection (thousands) of products to market. Clickbank also guarantees that you will get paid your commission. They also have a 60 day money back guarantee on the products.
Now selecting a product is one of the most important aspects off affiliate marketing:
- To start select a product that now and have interest in or are passionate about. This will make it easier for you to market.
- Do same research on the product. See if it is popular and does what it claims to do.
- Look at the commission that you will be generating. It can be anything from 25% to75%.It takes the same effort to make 25% or 75% commission. I would take the 75% commission product.
Most affiliate program marketing programs are in essence the same, but there are some small differences and these small differences can make a big difference. The difference comes in the amount of money you can generate per month.
The first and one of the major differences between different affiliate program marketing programs is, is in the amount of commission that are paid to you. This could be from 25% to 75% it takes the same effort to sell a 25% or 75% commission product. There are lots of programs that pay 75% commission and the product cost more than $100.I know which program I will be promoting. The major reason being the fact that it takes the same effort and expenses to make a lot more money. Don’t fool yourself making money is what it is all about.
The next kind of affiliate program marketing program to consider is membership websites or as it is also know a residual income program. Here you are marketing membership to an affiliate marketers program or website at a monthly subscription.
When people join the program through your efforts, you receive a commission for your sale, but it does not stop there. You also get a percentage of the subscription fee of these members who joined because of you. This you get every month for as long as the person stays with the program. You work once and are paid forever.
There are even same of this affiliate program marketing programs that gives you commission on the subscription of the members who joined the members who joined you. This adds up to a lot of money. This is cold leverage, doing more with less.
The next difference comes in the form of customer care and training. This is the biggest difference between the different affiliate program marketing programs. This one can make or break you, so focus. The good programs will have great customer care and would bend over backwards to help you succeed. This will come in the form of pre-written solo-ads-mail, training video's etc.
The great programs will have all of the above plus a plan that you can follow to make a success of your Internet business. This is a win, win situation if you succeed and make money they succeed and make money. AffiliateProgram
Sometimes it can be an automated marketing program where a Web advertiser or merchant recruits webmasters to place the merchant's banner ads or buttons on their own Web site. Webmasters will receive a referral fee or commission from sales when the customer has clicked the affiliate link to get to the merchant's Web site Web site to perform the desired action, usually make a purchase or fill out a contact form. The most common types of affiliate programs include pay-per-click, pay-per-lead, and pay-per-sale.
10.3 Types of Affiliate WebsitesAffiliate websites are often categorized by merchants (i.e., advertisers) and affiliate networks. There are currently no industry-wide accepted standards for the categorization. The following types of websites are generic, yet are commonly understood and used by affiliate marketers.
- Search affiliates that utilize pay per click search engines to promote the advertisers' offers (i.e., search arbitrage)
- Comparison shopping websites and directories
- Loyalty websites, typically characterized by providing a reward system for purchases via points back, cash back
- CRM sites that offer charitable donations
- Coupon and rebate websites that focus on sales promotions
- Content and niche market websites, including product review sites
- Personal websites (This type of website was the reason for the birth of affiliate marketing; however, such websites are almost reduced to complete irrelevance compared to the other types of affiliate websites.)
- Weblogs and website syndication feeds
- E-mail list affiliates (i.e., owners of large opt-in -mail lists that typically employ e-mail drip marketing) and newsletter list affiliates, which are typically more content-heavy
- Registration path or co-registration affiliates who include offers from other merchants during the registration process on their own website
- Shopping directories that list merchants by categories without providing coupons, price comparisons, or other features based on information that changes frequently, thus requiring continual updates
- Cost per action networks (i.e., top-tier affiliates) that expose offers from the advertiser with which they are affiliated to their own network of affiliates
- Websites using adbars (e.g. AdSense) to display context-sensitive, highly-relevant ads for products on the site Wikipedia
10.4 How Affiliate Marketing WorksIf you have a Web site or blog and are looking for a way to earn income from your online property, consider affiliate-marketing programs. Affiliate marketing is the term used to describe a revenue-sharing plan where an online automated marketing program lets Webmasters place an advertiser's banner ads or buttons on their own Web site. Webmasters will receive a referral fee or commission from conversions when a customer has clicked the affiliate link and performs the desired action, such as make a purchase or opt-in for downloads or newsletters on the advertiser's site.
Advertisers invest in affiliate programs for lead generation, and, of course, sales. Not all affiliate plans work in the same way or pay the same rates. Some enable you to place text or image hyperlinks to products or a Web site, others allow you to set up a shopping or store page that offers products related to the content of your Web site, and others require you to place general advertising banners or buttons.
The payouts for Webmasters also varies, but in the most common forms the affiliate is paid per click, each time a person clicks the ad (pay-per-click) or you may be paid acommission when a sale is made (pay-per-sale) or you might be paid by lead (pay-per-lead).
10.5 Getting Started: Learn the Lingo – See GlossaryIf you're in affiliate marketing, here is a quick reference of some of the more common terms used in conjunction with affiliate marketing. By familiarizing yourself with the terminology you will be better able to understand the affiliate agreement, how different programs work, and how you can earn money. Below you'll find direct links to common affiliate marketing terms from Webopedia.com.
10.6 More on Types of Affiliate ProgramsDifferent advertisers offer different types of affiliate programs. If you join a search engine affiliate program you most likely will be placing text links or banners to their advertisers and you'll work on a pay-per-click fee. E-mail list affiliates promote e-mail newsletters and are usually paid when a person joins the advertised opt-in e-mail list. Being an affiliate of any merchant usually means you are paid a commission per sale on the advertiser's Web site. Pay-per-click affiliate programs pay the least amount, as affiliates are often paid per thousand clicks (CPC).
Pay-per-lead programs are when you provide the links to downloads, trial offers, email opt-in lists and so on. Depending on the advertiser you may be paid per lead generation or you may not be paid unless the user subscribes and pays for a full service from the advertiser. Again, you may also receive fees for both instances. Pay-per-sale affiliate programs (also called revenue sharing) usually offer the highest commissions, and you will typically receive a set dollar amount per sale or a straight percentage of the total sale. Because a user has to purchase something, you may find this program best suited to high-traffic affiliate sites.
How Do They Work?Knowing what ads to place and what revenue your Web site generates isn't magic. Once you join an affiliate program, you then are able to choose the products or banners you want to include on your Web site, and then receive the code you will need to insert on specific Web page or throughout your Web site. This changes, however, when you select an ad revenue partnership, such as Google AdSense, for example where you have little or no control over the advertisement displayed. In joining the affiliate program, you will agree to their terms of service, called an affiliate agreement, which will tell you what requirements you must meet and how the click-through, lead generation or sales are tracked.
Example of an Affiliate ProgramWorldWinner is an online "Pay to Play" online game Web site that offers a revenue-sharing affiliate program. From the WorldWinner Web site (the advertiser in this case); you would first fill out an application to become an affiliate by providing basic information about yourself and your Web site through a Web-based sign up form.
If you're accepted as an affiliate, WorldWinner will provide you with an affiliate ID as well as the address to a Web page where you can generate the code to place different links advertising WorldWinner on your own site. They offer rotating or static text links, banners or buttons, and co-brand Web sites are also allowed. When you generate the code to place on your own Web site, it will contain your unique affiliate ID.
Any user who clicks a link to WorldWinner that contains your ID is tracked by WorldWinner via cookies. If they become a paying player and deposit money to their account and play games for cash, you then earn money yourself; it will be a percentage of that user's deposits for as long as you remain an affiliate (this particular affiliate program offers a 25 percent share in Net Applicable Revenue).
WorldWinner also hosts and provides you with all the statistics and information you need to determine how many users you are sending to their Web site, if they are depositing funds, and provide you with your revenue and payout information.
For the most part, affiliate programs work by using a combination of a unique user ID and cookies to track your leads and subsequent revenues. Most will offer a private affiliate section on their Web site where you can get your HTML code and also check your affiliate account status and information.
Through the use of browser cookies, any person who uses your link to make the desired action within a set amount of time contributes to your affiliate revenue.
For example if a user follows your link and looks through an online software store they are tracked as "your referral" by the browser cookie. If the person makes the purchase before the cookie expires, you get the referral commission. So even if a user sits with items in their shopping cart but doesn't go back and make the purchase for two weeks, you can still get the commission, provided the cookie is still active.
For the Webmaster, one of the hardest things about using an affiliate program to earn money is finding a good one that will actually produce results for you. To better your chances of earning revenue from affiliate marketing here are some tips to get you started;
- Always read the fine print. Make sure you understand how the payouts are structured, if you need to earn a minimum dollar amount before a payout, and, of course, compare commissions between similar affiliate programs.
- Once you have narrowed down your options to a handful of possibilities, take a look at the merchant or marketers' Web site rankings and traffic. If, for example, you have your choice narrowed down to three computer software e-tailers, you can use Google and Alexa rankings to help you determine which may have a better volume of traffic.
- While their Web site traffic won't directly help you promote their products, this may tell you which company has a larger customer-base (more traffic). A well-known name that your Web site visitors may be familiar with might encourage them to click the advertising links on your own site.
- Choose affiliate programs that complement your Web site content. If your site is all about sports, then chances are you'll want to skip on setting up a co-branded Web store for cartoon themed car accessories, for example. Also, if affiliate programs offer customizable banners, buttons or splash pages that can be edited to reflect elements of your own site design, be sure to take advantage of those options.
- Don't be afraid to play the field and try a couple affiliate programs, or opt out of one and choose another if you're not seeing any results after time. Results are going to be based on how much traffic your own Web site gets. If your site serves only a couple visitors a day, you can't expect high click-through numbers.
Choosing an Affiliate ProgramBecause there are such a large number of affiliate programs to choose from and many are structured differently, here are some tips to keep in mind while looking for a good match. First, you need to be sure you are comfortable with the product you're promoting or selling and you have confidence in the advertiser you are linking to.
Check the pages on the advertiser's Web site. If it's something you yourself would never consider purchasing, or it possibly looks a bit unreliable, then chances are your visitors won't be interested in it either. If you're running a content-based site, you don't want to sell anything that might offend visitors or lower their opinion of your site.
The best rule of thumb is to pick affiliate programs that offer something that's relevant to your site. For example, if your Web site is about registering domain names, look for affiliate programs that are related to the topic such as Web site hosting, Webmaster tools and software, Web site templates and so on.
There is nothing worse than advertisements that stand out like a sore thumb on your pages (e.g., online casino ads placed on a Web site about elementary school math tutorials). Even niche sites can find affiliate programs that are a good match.
What is the Advertiser really offering its affiliates? Make sure you really understand the affiliate agreement and that you'll be able to comply with it. Take the time to check out the advertiser before joining to ensure they really do pay out to affiliates and that their program is not a scam. Look at what the advertiser is offering in terms of tracking and reporting tools for affiliates. Good programs will provide you with a way to access real-time automated statistics to view conversions, sales and commissions.
Be sure you have ad and product display options to integrate the advertising into your Web site. Can you change the colors, themes and choose from a selection of different sized banners and buttons? With this type of service it means a little less work for you, the affiliate, and it also means your affiliate program meshes with your site. Some higher-pay programs may look attractive, but may offer a higher commission because they might not provide support and tools to their affiliates. If this is the case, make sure you determine if this program will be too high-maintenance for you before joining.
Pay-per-click programs offer the lowest dollar value for conversions, and you will need a higher click through rate to earn money. Pay-per-lead and pay-per-sale programs will usually offer a higher commission, but you will have less visitors clicking through to complete the transactions, so you need to have many unique visitors. Use your own traffic and reporting tools to determine which type of program will have a better chance of success on your own site. WebOPedia