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Introduction
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Commission based advertising programs designed to drive targeted traffic to your site known as merchant sites.
They (Merchant sites) typically pay a commission based on purchases made by traffic sent from you, the referring site.
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Advantages Of affiliate Programs
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- Affiliate program can enhance your visitors' enjoyment of your site, as well as make you money.
- If the affiliate program matches the content of your site closely, and promotes a product or service that is a good fit with your audience, then you are likely to see excellent results from a commission-based system.
- Commission-based affiliate programs reward you based on a percentage of total sales, it's very easy to demonstrate the value of your traffic to a merchant partner.
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Disadvantages
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- A low click-through to conversion rate
- Most reliance on a merchant's ability to close sales
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A low click-through to conversion rate
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You will find that only a few percent of your visitors will click on a banner or link; of that percentage, a few percent will actually buy something. It can be disheartening to see that there have been thousands of visits to your site, yet you have yet to generate any sales for your merchant partners.
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Advice |
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The more you can focus your choice of affiliate programs to the theme of your site and the interests of your audience, the better the results you will achieve. Also, remember that text links, "odd" ads (i.e. advertising that doesn't immediately look like advertising) will generally give rise to much better results than banners or buttons.
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Most reliance on a merchant's ability to close sales
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Under a commission-based affiliate program you're reliant on a merchant's ability to sell to the visitors you're sending them. Of course you can improve the chance of a sale by effectively pre-selling the product or service, but ultimately it's still up to the merchant to close a sale - and if they don't sell anything to your visitors, you get nothing!
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Summary
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Commission-based affiliate programs are the most common type of affiliate program. Many affiliate programs pay a commission based on a percentage of the revenue generated by purchases made by visitors coming from your website.
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Resources |
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Affiliate Programs
