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The following article was published in our article directory on October 30, 2014.
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Article Category: Marketing
Author Name: Frans Boucken
Affiliate programs are the platform for online traffic arrangements between a company and a marketer. Simply put, a merchant pays a marketer to send them traffic for their products and services. Through this program, companies are able to reach a wide public, advertise their products in different ways and increase their sales. It provides little risks compared to the traditional ads done through television and billboards. Even if the merchant is not well-verse in marketing online, there is a middle man that takes care of the nitty-gritty details for them. All they need to focus on is fulfilling customer orders.
Companies who want to boost their product sales online will find that affiliate programs are the most effective way to go. Agreements are made with different webmasters who have a considerable amount of followers to allow a part of their webpage to be used in product promotion. These webmasters are called affiliates and they are paid based on either the amount of traffic they send to the merchant website, number of sales or number of people providing their information as leads. Companies pay their affiliates in a fixed rate or based only on the effectiveness of their marketing.
Affiliate program networks are the middle men and are responsible for handling the agreement details. They are not necessary but they do provide considerable convenience to both company and affiliate. Merchants do not need to provide links, banners, figure out ways to track the number of page views and sales directed, calculate compensation and provide support to affiliates. Networks do all these efficiently. For these services, companies provide a number of deposits during their registration which covers the one-time membership fee and payment for their affiliates. Some networks may require a yearly payment so it's important to canvass for an affiliate network suitable to the merchant's budget.
Usually, companies pay affiliate networks within the range of $1,000 to $5,000 upon registration. This can be considered steep but if all marketing details are examined, the price is fair compensation for affiliate programs. Unlike advertising on television or on the street, merchants can only hope that people will notice them and purchase their products. They are setting themselves up for big losses if the result barely covers the cost of advertising. In the program, merchants will only pay for the quantifiable results they ordered. If the sales are bad, they pay and lose nothing. The other amount is paid for the convenience of the transaction.
Nothing could be safer than registering with affiliate programs when it comes to online marketing. The risk is small and provides a promising return of revenue for every affiliate registered. Because the affiliates come from different parts of the world, the product presence can be spread anywhere. It is perfect for any type of business, whether big or small. A testament to its success is the online selling titan, Amazon.com. The company pioneered this type of marketing in 1996 and now, the website is recognized by every demographic who likes to spend money online.
Keywords: affiliate marketing, affiliate programs, make money online
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