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Affiliate Programs Have Changed How Business Online Is Done

Aug 17, 2007
Network marketing software is also called affiliate programs, referral programs, and associate programs. It is fairly inexpensive to begin your own affiliate program. All you need to do is purchase affiliate software or you can choose a service that will run your program for you. If you do choose someone to run the affiliate program for you, keep in mind that it can cost you thousands of dollars to have it set up and to maintain it through them. If you have a budget and want to keep your profits, then it is best to do it yourself and buy the software.

Affiliate programs have changed how business on the internet is conducted. Merchants are able to create a virtual sales force by using affiliate sales channels. This enables them to market their product without having to pay anything up front. They only pay if they get results from their affiliates. This way the merchant can turn the wasted advertising dollars into more products.

Since the merchant only pay their affiliates when they produce results when they use an affiliate software program, then they do not have to pay any up front fees. You will only pay your affiliates when they send you a sale or a new lead. You can either pay them by pay per lead, pay per click, pay per sale, pay per email, pay per impression, or pay per download. You will want to pay them a commission-based percentage or a flat fee based per transaction. It is up to you how you reward your affiliates.

How does affiliate software work? After an affiliate joins your program, he or she will receive an affiliate ID that the affiliate software will recognize him by. The banners and such that he or she puts up on their web pages will also be identified by this same affiliate ID. Whenever a visitor clicks on their banner or link and reaches the affiliate merchant website from the affiliate's website, a cookie will be placed on his or her computer by the affiliate software. How long this cookie will last can vary. Once the visitor makes a purchase from the merchant's website, the affiliate software will record the sale in its database and associate it with the specific affiliate ID. Every time that visitor makes a purchase the affiliate will get a commission on it until the cookie expires. Lastly, the affiliate is notified by email of the sale.

If you are an affiliate merchant, then you need to be using an affiliate software program. You can buy and install this tracking software in your server. You will have to upgrade this software on your own and under your own expenses. If you do decide to go with an affiliate network service, then they supply the affiliate software for you. They also will update the software whenever it needs it, thus eliminating the cost to you.
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Dustin Cannon is owner of JustArticlesVIP.com and writes on a variety of subjects. To learn more about this topic Dustin recommends you visit:
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