Introduction to Affiliate Marketing - Part 2/2

Introduction to Affiliate Marketing - Part 2/2 Part 2 of 2

Affiliate Networks

Operating an affiliate program to drive traffic to your website has never
been easier. Most Sites utilize 3rd Party Services (so called Affiliate
Networks). Those Services provide the infrastructure for you to track all
the traffic and referrals to your Website.

Networks also work as a Recruiting Platform to find Websites willing to
promote your Products or Services. The Integration of their Service usually
takes just a few days or sometimes just a few hours.

Some of the Networks also help you to keep the generated overhead low (such
as Payment of the Affiliates).

Networks usually charge 20-30% of the commission you pay to Affiliates as
Fee to you. If the Fee is 25% for example and you pay 10% commission per
Sale to you Affiliate, you must pay $12.5 in commission and fee for a $100
Sale.

In-House Affiliate Program Solutions and Software

You might want to have more control over your Affiliate Program and avoid
the Network fees by running the program In-House.

You can, of course, develop all the necessary tools and technology by
yourself, but that is may be not very cost effective and not as easy as it
seems.

The technology has already been developed by various Affiliate Tracking
Solution Providers and Software Packages.

They are most of the time easy to plug into your existing Sites and have
already proven themselves. Be carefull with too small or too new Solution
and Software Provoiders.

Check the Background of the Company you consider first. Do your diligence!

Outsourcing - Outsourced Program Management (OPM)

When you have your Program up and running, the first and important step was
done. Now begins the complicated part starts.

The Wild West of Affiliate Marketing when quick and easy money was made and
having an Affiliate Program running on "Auto Drive" generated a huge
increase in sales by affiliates that seeked out programs and did everything
themselves without the need of support and guidance is over. Business on the
internet matured and Affiliate Marketing as well.

An Affiliate Program requires attention.

To get active and quality affiliates requires active recruitment efforts.
Support of existing affiliates also became vital. A clear set of Rules, the
Affiliate Agreement, must be worked out and be enforced.

Allocate Resources to the program and don't do it on the side.

Your program is destined to fail if you don't spend the required resources
and time for your program.

If you don't have the resources in-house, consider outsourcing of your
program management (OPM). There are today a number of quality service
companies available that are specialized in this.

Conclusion

Thousands of Websites operating their Affiliate Program successfully today,
prove, that Affiliate Marketing is the most cost effective and efficient way
to promote your products and services on the World Wide Web.

Affiliate Marketing guarantees a fast ROI (Return of
Investment) and for some Online Merchants and Services are the Sales
generated through the Affiliate Channel making up a considerable percentage
of their total online Revenue.

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Carsten Cumbrowski operates the Internet Marketing and Web Development
Resources Portal Cumbrowski.com. For Affiliate Marketing Resources visit
http://www.cumbrowski.com/CarstenC/affiliatemarketing.asp .
If you are new to Affiliate Marketing visit
http://www.cumbrowski.com/CarstenC/affiliatemarketing_traini
ng-courses.asp first.