Selecting an Affiliate Program That Is Right for You

September 22nd, 2008 Posted in Affiliate Programs

To understand the opportunities available, you must first understand the different types of affiliate programs. They all pay for referral business, but in different ways. Before you decide to implement an affiliate program, you must first look at your objectives, your products and services, and your target market, and then decide whether an affiliate program is appropriate for your site. If so, choose the type of program that works for you and your affiliates.

Click-Through Programs:
A click-through program is one in which affiliates receive a fee for every unique visitor who clicks through on the referring link on the affiliate’s Web site or from a link the affiliate has included in a signature file, e-zine article, advertising, or elsewhere.

Click-through programs can serve to increase traffic to your Web site as long as your banner ad, signature file, e-zine article, or whatever method is used to refer is designed with your target market in mind and that element is placed on sites that are of interest to your target market.

Commission-Based Affiliate Programs:
The most common type of affiliate program is commission based. This type offers the referring Web site a percentage of sales income resulting from its referrals. Commissions typically range from 1 to 15 percent.

Flat-Fee Referral Programs:
Flat-fee referral programs pay the owner of a Web site a fixed amount for every new visitor who links from the referring site to the host site and takes certain predefined actions. The required action often is making a purchase on the host site. Some flat-fee programs do not require a purchase; the predetermined actions might be joining its e-club, signing up to receive its e-specials or newsletter, downloading a free demo, ordering a catalogue, requesting a quote, or taking another action desired by the host site.

Commission-based and flat-fee affiliate programs can further encourage the referred visitors to do what you want them to do when they get to your site. The referring site knows that it receives a commission only when a certain action has been taken by the visitor, whether that action be a purchase, a quote request, or something else. The referring site has a vested interest in having the referred visitor take the desired action and is in a position to suggest or recommend that the visitor take that action.

- written by Susan Sweeney, CA, CSP, HoF

Book Susan Sweeney, the e-expert, to speak at your upcoming convention or event. Get Susan to critique your web site or to provide distance or on-site consulting. Call today, toll free 888-274-0537, to set up a meeting with Susan to determine which is best for you and your business or send us an email at susan@susansweeney.com.

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