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.

Due to its simplicity of operation the affiliate marketing program has become the most famous methods of how to make money from home. This program can suit to anyone and everyone on this planet. Even housewives who dream of a ahome business work at homea can earn from this.

So how and why do advertisers pay the webmasters hosting their ads? First, it is important to understand how sites are ranked when someone searches the web. When a web user searches for a particular site or term, the listing the search engine provides is from website rankings. These rankings are produced when someone visits or browses a website. The higher a website is listed in the search results, the more hits per day it receives, thus improving its ranking furher.

The more traffic the site sees, the more likely a user is to click through the ad link on a website. Paying for ad space on these popular sites can potentially result in hundreds of new customers each day. Advertising space is therefore priced based on the hits that the website receives.

Advertisers using affiliate marketing programs to place ads on a website other than their own arrange payments into several different reimbursement types or payment scales. Some of the most common pay scales are referred to as per click, per thousand, per action, per lead, and many others.

In a pay per click the advertiser pays the webmaster each time a web site user clicks on the hosted ad. Likewise, 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 requires 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, or perhaps completing a purchase before payment is generated to the webmaster. Another payment scale type is cost per lead which is similar to cost per action, but the webmaster sends potential customer information to the advertiser much like one company you purchase airline tickets for might sell your information to their credit card company.

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. - 16069

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