You may want to start an affiliate program because basically it is a referral system. This takes care and planning to have software or other tracking in place to make sure that you give credit where credit is due as well as not to run into messy accounting issues. Before you invite affiliates, you will want to be sure that everything runs reliably so that you don’t let the affiliate down.
Once you have the system in place you can ensure your affiliates that they will get “x” amount of the sales that they bring into your website or business. The more you offer your affiliates as pay, the more motivated they are to advertise for you. Affiliate tracking systems are very necessary.
You, as the vendor, need to advertise your affiliate program. This will take time, energy and money. Affiliates will then begin to join your network (ideally). As they bring in customers and the customers make purchases your program should be designed to take care of keeping their percentage of sales separate from yours.
Depending on the accounting set up you use, you will pay your affiliates in certain time frames such as once a month. The money that you owe the affiliate can be paid by check, a Pay Pal account or just an EFT. Whatever works best for your way of doing things.
Affiliate programs can be great for everyone if done well. If you are not the vendor but looking to make money online, becoming an affiliate can be a great way to earn some extra money.