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Affiliate programs are an excellent way to make money online, particularly if you don't have a product or service of your own. Here we have answered some of your most frequently asked questions.
What are affiliate programs?
How much money can I make with an affiliate program?
Do I need a web site?
How much traffic do I need to make money with affiliate programs?
What is a two-tier program?
Isn't a two-tier program the same as multi-level marketing?
Can I make a living just from affiliate programs?
What is the best affiliate program?
How can I increase my commissions?
What is the best way to promote an affiliate program?
If I sign up with an affiliate program, can I have links on my
site from other programs?
Do most affiliate programs require that their products be related
to my site theme?
What are the worst mistakes affiliate marketers make?
Do I have to pay taxes on income from affiliate programs?
I don't live in the USA. Will companies still pay me?
What are affiliate programs?
Affiliate programs are revenue sharing agreements between companies and Webmasters.
In return for placing product links on websites, in ezines or advertizing, the
company pays the Webmaster a stated commission when a customer purchases a product
or service thru the Webmaster's link. This is a rapidly growing, cost effective
way for businesses to increase sales and for webmasters to make money.
How much money can a webmaster
make with affiliate programs?
The potential for high earnings is tremendous. Affiliate marketing is a 100+
billion dollar industry, and growing strong. However, many affiliates only earn
a few dollars a month. It all comes down to you. High earners know the products
they are promoting, know their customer base and have put real effort into promoting
the programs. Many affiliates simply put a link on their site and expect the
money to come rolling in - that simply isn't going to happen. As with any other
business time and effort is going to produce the most rewards.
Do I need a web site?
Some programs state that you don't need a website to promote their products,
but I believe it is far easier and more profitable if you do have a website.
With your website you build trust and confidence with your customers, making
them far more susceptable to believing in a product that you are offering (and
far more susceptable to purchasing the product once they get to the product
site), than if they are just reading a cold ad by an unknown entity.
How much traffic do I need to
make money with affiliate programs?
It's a given that the more traffic you have the more chances you will have to
make a sale. But a lot depends on what you do. For instnce, does the product
or service you're promoting fit into your website theme and customer base? Do
you write articles and actively promote the products or do you simply set up
links and banners?
Bottom line, if you have 15,000 unique visitors a month (500 per day) and make a good effort to promote the products you should be able to begin earning a decent income from your affiliate programs.
What is a two-tier program?
Two-tier affiliate programs pay you a commission for any sales you make directly,
and also pay you a commission (usually a substantially smaller percentage) on
the sales of any sub-affiliates that have signed up for the program from your
links.
Isn't a two-tier program the
same as multi-level marketing?
A two-tier program is simply that. There are not multi (many) levels involved.
There is no "downline spill-over". You make your commision for products/services
sold, and receive a small percentage for the recruitment of other "sales
people", and that is as far as it goes.
Can I make a living just from
associate programs?
Most Webmasters use affiliate programs as a supplement income, apart from their
main service or product, but with some creativity and effort, you can certainly
make a living with them.
What is the best affiliate program?
That would depend on your site. The best affilate program for your site, might
not work for someone else's site. You need to direct your attention to products
that are suitable to your site and to your customers. That is what will make
the best program for you. You can also check out our Best Affiliate Programs
listing.
How can I increase my commissions?
If you are primarily using banner ads, try using text links instead, or in addition
to. Text links receive a much better click-through/sales ratio than banner ads.
Secondly, personal product endorsements will be received very well by your customers, and could double or even quadrouple your sales. To do this, purchase the product/service for yourself so that you can write a truthful, enthusiastic endorsement.
Thirdly, promote good two-tier programs and/or programs that provide residual income from sales. This will give you extra income, without extra effort. For a listing of some of the best programs in this category see Best Affiliate Programs.
What is the best way to promote
an associate program?
Personal endorsements are a very effective way to promote a product. Placing
them in your opt-in newsletter should boost sales even more. For more in-depth
information on promoting affiliate products check our Website
& Business Promoting Tips section or Researches, Surveys, News & Articles
section.
If I sign up with an affiliate program, can I have links on my site from other programs?
Yes. There are only a handful of companies, such as Barnes & Noble that have an exclusivity clause. Just make sure all the programs are relevant to your site, and that you don't have a hodge-podge of links and banner ads that will ultimately distract from your site theme and appearance.
Do most affiliate programs require
that their products be related to my site theme?
There are some companies, Disney for example, that require a certain type of
site, but the majority approve you instantly without any type of site check.
More important to you is not whether they approve you, but rather is the program
right for your website? There are many affiliate programs out there relating
to almost every type of business, so be choosy!
What are the worst mistakes
affiliate marketers make?
The worst thing any marketer or business person can do is send spam (bulk unsolicited
email). Not only will your reputation be ruined, but you may lose your Internet
service provider as well.
Secondly, selling products/services that are not what they claim. Make sure you check out the program and the product/service before you apply - try it out yourself, if necessary. To keep your reputation in tact, you should only promote quality products backed up by a quality program.
Thirdly, make sure you have a well oiled website. A website that is very slow, is poorly organized, has a color scheme that is hard on the eyes will not keep visitors, they will quickly click away. Most importantly, make sure your website is search engine optimized or customers won't find you. If you need more information on this topic go to Search Engine Optimization.
Do
I have to pay taxes on income from affiliate programs?
Yes. Whatever tax laws in your country, state or locality that apply to the
income you earn, apply to an Internet business as well.
I don't live in the USA. Will
companies still pay me?
While there are a few that won't, most companies are set up for International
business - this is the World Wide Web after all. Make sure you read the agreement
contract before you sign up for any affiliate program.