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May 30, 2008

AFFILIATE REVENUE SHARING

Filed under: Uncategorized — paulenge @ 4:25 am

 

 

Hello Guys, this week i am going to tell you how affiliate revenue is shared,

please read along and let me know your opinion in the days ahead.

The vast majority of affiliate programs provide compensation through revenue sharing.

In some cases, revenue sharing is referred to as a cost per sale transaction. Essentially,

the affiliate is earns either a fixed amount or a percentage of the purchase price when

anyone locates and buys the good or service through the portal provided by the affiliate.

For example, a family web site that allowed businesses that produced infant care

products to feature ads on the front page of the web site, complete with links, would pay

the family for every sale that was made through that link.

Many affiliate programs require that the earnings reach a certain level before pay out

takes place. Others will pay on a weekly, bi-weekly, or monthly basis, with no minimum

amount of earnings required.

Another less popular means of generating revenue through an affiliate program is the

cost per action method. This differs from the cost per sale method, in that cost per

action simply requires that the prospective buyer see the ad on a web site and click on it

to investigate for a minimum amount of time.

It does not have to end in a sale. As one can imagine, the amount of revenue generated

from this sort of arrangement is much less than by a cost per sale revenue sharing plan.

With the cost per action world, the pay per click may be the format that most people

recognize immediately. However, it is also the least popular method of affiliate

marketing today.

While PPC began with a strong following, the method proved to be far too susceptible to

fraudulent clicks, which resulted in little sales but a lot of money paid out by advertisers.

Today’s methods, which help to track addresses of the customers as well as require a

minimum amount of browsing time, have cut down on the incidence of fraud a great

deal.

Affiliate marketing today covers a wide range of products and services, from household

items to telecommunications offerings. Any enterprising individual with some expertise

in a given area could very well find an affiliate program that would generate some

recurring income. All it takes is a look around the Internet.

Thanks and see you next year.

 

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