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Network Marketing Affiliate Program Are A Win Win Business Model

Aug 17, 2007
A network marketing affiliate program is a very popular means of promoting a web business where the affiliate is rewarded for every visitor, subscriber, or customer that they provide through his or her efforts. It is the modern version of paying someone a finder's fee for bringing in new clients and customers. Sometimes the compensation is based on a certain amount for each visit, known as pay per click, registrant, known as pay per lead, or a commission for each customer or sale, known as pay per sale, or a combination of those.

One of the most attractive parts of getting involved in an affiliate program, is that there is no payment due to an affiliate until you get results. You can run your own affiliate program or have a third party run it for you; however, if you choose to do the latter, be prepared to spend thousands of dollars in set up fees and maintenance fees. There are many businesses that owe their growth and success to a an affiliate program. Generally, though, the increase in sales is around 15% to 20 % of online revenue.

There are some advertisers that offer what is known as multi-tier affiliate programs. These types of network marketing affiliate programs distribute commission into a hierarchical referral network of sign-ups and sub-affiliates. Snowballing is a type of system that rewards a chain of hierarchical publishers; however, most network marketing affiliate programs are simple single tier programs.

If you are a merchant and are thinking about adding a network marketing based affiliate program to your promoting strategy, then you should research the many different solutions available to you, such as standalone software, hosted services, shopping carts with affiliate features, and third party affiliate networks.

Since network marketing affiliate programs are so convenient and work so well, they have fast become the industry's main means of online marketing. There are currently four methods for affiliates to earn commissions through affiliate marketing. Here are a couple of ways for the affiliate to earn a commission. The first is pay per impression. This means that the merchant website will pay the affiliate a certain amount of money for every 1000 impressions. An impression is a page view or display of the ad. The ad can be a text ad, a banner image, or rich media. The next is pay per click. This is where the merchant will pay the affiliate a certain amount of money every time a visitor clicks on the advertiser's ad. Many affiliate programs have almost moved to using only pay per lead or pay per sale models. These are also known as performance marketing and the commission that is paid is generally a percentage of the referred sales or a fixed dollar amount.
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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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