Spiga

I'ts Our Business Blog & Tutorials

,

How Affiliates Program works

As you are probably aware, what is called an "affiliate program" or "associate program" is a relationship in which a merchant pays you (the "affiliate") for links from your site to his site. Usually, the affiliate is paid only when an actual sale is made by the merchant as a result of your link.

This kind of advertising (and it IS advertising) is called Pay Per Action (PPA), since the affiliate isn't paid for carrying the merchant's advertising link or graphic on his site, but only when a visitor performs a certain action (visits, fills out a form, makes a purchase).

A Win-Win

One of the reasons affiliate programs are so popular is that that offer a win-win situation for both merchant and affiliate.

Merchant Advantage. The merchant's cost for advertising a particular product is limited (largely) to the percentage paid to an affiliate, and the merchant only has to pay when a purchase is actually made. This is much better than banner advertising, where the merchant pays whether or not any purchase occurs. In fact, the amount paid to an affiliate for a purchase through an affiliate link is probably only 10% to 20% of the cost of that sale through banner advertising (which charges in cost per 1000 banner views, CPM).

0 comments:

Your Ad Here

Contact us