Home > Features > Affiliate Program Basics • Bookmark   • Newsletters   • Register Search Options


Affiliate Program Basics

Affiliate Program Basics

May 23, 2006
Text size: 
Get XBIZ News
XBIZ Research
Will virtual reality boost the paysite market?
Yes, it will soon
Yes, but in a few years
Out of 179 votes. Results based on votes submitted by members of XBIZ.net social network.

" Another advantage of being an affiliate is that you do it from almost anywhere in the world. "

Joining an affiliate program is a ground floor opportunity; all you have to do is send visitors to your affiliated website by placing a text link or banner on your website and you will receive a commission on each sale, without the complication and expense of actually selling anything yourself. Instead, you will earn a commission for producing a transaction.

Affiliate programs, also known as referral programs, associate programs, profit sharing programs or reseller programs, give affiliates the ability to create an online business selling thousands of products and services.

One of the first affiliate programs was run by the mega-bookstore, Amazon.com and they still have the largest base of affiliates on the Internet, with over 600,000 affiliated sites (although they may not be the best affiliate program for many).

Affiliate programs are generally offered by sites selling goods or services, although some affiliate programs reward other types of transaction such as getting a visitor to sign up for a free newsletter, or a download.

Some affiliate programs pay per-lead rather than per-sale; in other words, you bring them a prospective customer and they pay a fixed "finder's fee" for the chance to market to that customer. This is a typical arrangement for affiliate programs in the insurance, real estate and credit card industries, for example.

Types of Affiliate Programs
There are several common types of webmaster affiliate programs, including:

Pay-per-sale: If you refer a visitor to the online merchant's site and if that visitor makes a purchase, then you get a percentage of the sale as a commission.

Pay-per-lead: You get paid a one-time fee for generating a lead for the merchant.

Pay-per-click: You get paid for every visitor you send to the online merchant regardless of any sale or purchase.

Two-tier: You get a commission on direct sales you generate plus a commission on sales generated by affiliates you recruited.

Benefits of Affiliate Programs
One of the biggest benefits of using an affiliate program is that you just need to drive traffic to your affiliated site. You don't need to find or deal with brokers, wholesalers or inventory, process orders, shipping and handling, customer service, tech support, handle returns, warranties, employees, etc. An affiliate doesn't even have to be present; your site will keep earning money while you're sick, on vacation, or just doing something else. Another advantage of being an affiliate is that you do it from almost anywhere in the world.

How These System Work
When you join an affiliate program, you will be given a specially formatted URL (link) that you should use to link to the affiliate program provider's site. This will enable the affiliate provider to monitor the traffic you send from your site and pay according to the type of affiliate program.

Many affiliate programs pay a commission based on a percentage of revenue generated by purchases made by visitors coming from your website. For example; if you participate in an affiliate program that offers a 25 percent commission and you send a visitor who purchases $100 worth of products, you'll earn a $25 commission. The commission rate itself can vary from 20 percent up to 50 percent or more in the case of intangible products such as eBooks or website subscriptions.

Affiliate programs vary widely in terms of overall quality, reliability, commission, statistics, plus the amount of help that the merchant site offers in marketing the products or services it sells, and so on.

By thoroughly understanding an affiliate program, you'll minimize the risk of not getting paid - and maximize your potential earnings.


Understanding 'Camming Sociology' Can Enhance Interactions

After working for six years in the live cam industry as a cam model and almost double the amount of time studying — while working simultaneously — how relationships work in cyberspace, I am... More »

Proper Fisting Techniques for Gentle Stimulation

Does the phrase “anal fisting” make your sphincter clench in terror? Does it seem like an urban legend or an extreme party trick? Most people scoff at the idea of trying it because it sounds... More »

Camming Games, Contests Keep Customers Engaged

Last issue, I talked about the importance of changing up the ambience in a cam model room via new décor and small visual tweaks, to keep viewers engaged long-term. This time, I’d like to discuss... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.


XShow 18+ 2017

Jun 01 - Jun 03
Moscow, Russia

Cam Summit

Jun 02 - Jun 04
Lloret de Mar, Spain

AW Summit

Jun 06 - Jun 09
Mamaia, Romania

Gaelic WWW Conference

Jun 19 - Jun 21
Wicklow, Ireland
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!