Referral Affiliate Programs

Just as a bulletin board provides advertising space on the freeway, your website can function as an advertisement space on the web. A referral affiliate program acts as a third party in a business exchange when a merchant website pays someone a commission for referring customers to the merchant’s site. If your website generates a substantial amount of traffic, using your space to advertise for merchants can be an easy way to earn money.

In a referral affiliate program, you place a link on your site for the advertising merchant. When consumers see the ad and become interested, they access the merchant through that link. Each time this occurs, there is the potential to make money. Some referral programs pay on a pay-per-click basis, while others use a per-per-action model. Pay-per click means that you will earn money every time the advertising link is used. Pay-per-action models work similarly. However, the potential consumer has to do more than just use the link. They have to become an active lead by participating in a free trial, survey, etc, or a completed sale, in order for you to earn an advertising commission.

Referral affiliate programs use special software for tracking referral statistics and commission payments. Generally, they provide a regular pay check based on results. If you operate a successful site, you have the potential to make hundreds or even thousands of dollars with little effort. However, in order to participate in a referral affiliate program, your site is usually required to generate a certain amount of visitors who will see the ads. Overall, referral affiliate programs act as a revenue sharing arrangements in which you can be rewarded for sending customers to others companies.

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