What are Affiliate Programs?

We have all heard how wonderful affiliate programs are, and how they are an invaluable tool for eCommerce, but what are affiliate programs?

Affiliate programs work in the following manner; a merchant will pay a commission to a web site owner for generating sales or click throughs from either a banner or a text link from the web site owner's site. Most affiliate programs pay the commissions as either a flat fee, or as a percentage of the transaction.

Sites that sell physical products like books and toys typically have affiliate programs that pay you when their goods are purchased. Sites that have subscription models like ISPs and online communities typically have affiliate programs that pay you a flat fee when someone you referred joins their service.

Affiliate programs are becoming more and more competitive in the growing eCommerce marketplace, so it is essential for merchants and web site owners to research affiliate programs before getting involved. Joining a few affiliate programs is a good way to measure affiliate programs against each other.

According to a recent survey, in November 2000, 286 affiliates on Refer-it.com stated the most valued aspect of affiliate programs are the commissions. If the commissions do not measure up to the competition, then affiliate programs can be more of a struggle than an asset.

The viability of affiliate programs has already been firmly established, but they cannot provide a magic solution for a company founded in a shabby business plan. The best type of companies for affiliate programs are those selling a quality product at a good price, and paying affiliates a good commission.

Follow the links on this page for more information on affiliate programs.

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Author Notes:

Craig Butler contributes and publishes news editorial to http://www.freeweb-us.com. A web site featuring the best Free ISPs, Free Long Distance, Free Voice Mail, Free Articles and more!