Tuesday, December 30, 2008

All About Affiliate Marketing Program

By Don Bethune

Affiliate marketing are a group of marketing programs which allow advertisers to reimburse webmasters for putting up advertisements on their webpage or within the e-mails they send. In the same way an particular company would pay for space in the newspaper or on a billboard, they pay for space on your website.

The simplicity of being participating in affiliate marketing programs has made it one of the most well known ways to earn income without leaving home. These programs allows just about anyone, housewives, the elderly, the homebound, to have their own 'home business' and gain monetary freedom.

So just how do advertisers pay the webmasters hosting their ads? First, it is important to understand how sites are ranked when someone searches the web. Simply, the more hits a website receives per day the higher it is listed when a user performs a web search with a search engine. This in turn makes a frequently visited website have even more hits.

Having an add on such a page would be lucrative to any company as it can account to hundreds of new customers everyday. Therefore the price that advertisers pays to the webmasters depends on the number of hits of the webpage on which the add is going to appear on.

Advertisers using affiliate marketing programs pay based on the several types of actions that occur as a result of a website user clicking on their ad. Some pay per click, per thousand click, per action after click, per lead, per completion, and many others.

In a cost per click scale the webmaster will be paid based on the number of times a person using the website hosting the ad, clicks on the link directing them to the advertiser's website. In the per thousand click scale the webmaster is paid for every thousand times a web user clicks on the ad's link. A per action scenario means that the web user must not only click through the ad link, but also complete a particular action, such as filling out customer information, signing up for a contest, completing a purchase and so on. Another payment scale type is cost per lead which is similar to cost per action, but the webmaster sends potential customer information.

How do webmasters choose the right affiliate marketing program for their websites? Many simply search the internet! The best way to determine which program best suits a webmaster is to search for affiliate programs, evaluate the payments schedules, and determine if ad placement is suitable for their site (size and location requirements).

Income from affiliate marketing can vary widely and is highly dependent on the number of hits your website receives. Another consideration is that part or all of the income generated may be considered taxable income on the city, state, or federal level; it is best to check with your local tax office. Regardless, the income potential is boundless and worth looking into if you have the space on your website.

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