How Affiliate Programs Work

Affiliate programs are very easy to join. All you need to get started is ownership of a website that acquires internet traffic. The programs work by placing an ad or several ads on your web space that lead viewers to the advertiser’s site. When you direct traffic from your site to another’s, you are paid in return. Overall, they work to provide you extra income by renting out a small space on your website as an online bulletin board for others to see. Commissions for affiliate programs vary in both structure and the amount of payment.

The pay structure for affiliate programs is based on either a pay-per-click, pay-per-action, or pay-per-sale basis. In a pay-per-click commission structure, you earn money every time one of your site’s visitors clicks on the affiliate program advertisement. Although the amount for each click varies greatly, payments between about $0.20 and $0.40 per click are common.

In a pay-per-action structure, the leads that the advertising link produces must produce some kind of action to shows promise for a future sale. Sometimes this means that the potential customer must participate in a survey or free trial of a product in order for you to earn a commission. However, the payment scale for this type of structure is generally higher.

Additionally, a pay-per-sale commission structure requires that the lead results in the purchase of a product or service. In other words, when someone links to ad advertiser’s site from your page and makes a purchase, you get paid as part of a profit sharing system. This type of payment structure usually yields the highest payment per lead.

Statistics and commissions for affiliate programs are tracked by using a special software. Then, checks are usually issued to participants on a monthly or bimonthly basis. Overall, participation in an affiliate program works to generate revenue for both advertisers and affiliates. You can earn a regular income just by placing a pre-generated advertisement on your site.

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