how do affiliate programs work

If you're thinking about start to joining an affiliate program, you'll need to have a better idea of how they work.  i hope This article can help you understand a bit more about "how do affiliate programs work"

"What Are Affiliate Programs?"
affiliate program is a paid referral system with several important parties: a merchant with a product or service to sell and that merchant's affiliates.
When visitors come to the affiliates websites, they will find an introduction to the merchant's products or services. This might occur through a banner ad, a pop-up ad, an image ad, or a text ad provided by the merchant, as well as through content dreamed up by the affiliates that expand upon, amplify, or explain the product or service in more detail. When visitors click through to the merchants site and a visitor buy something what merchant offers( a sales made), the affiliate gets a commission.

Step 1

when a merchant decides to create one affiliate program,an affiliate program gets its start for visitors. The merchant may create the program using the services of a programmer using any software or may opt to contract with a web-based tracking service or join an affiliate network. It's a great idea for the merchant to test all the system from the affiliate's point of view, to make sure that all is well.



After that, the merchant creates advertisements for his or her affiliates to use. These may take many forms, as indicated above and open-minded merchants and this article has all rights reserved and is copyright by 100 Best networks will work closely with affiliates, encouraging them to come up with their own marketing ideas. Participation of affiliates is then solicited through a variety of means.

Become Affiliates

When an affiliate respond to merchant's advertising and join the merchant's affiliate program, there is usually some communication before an agreement takes place.
The potential-affiliate's website may be checked by merchant to assure a good fit. If both parties agree to enter into a business relationship, a contract detailing both parties rights and responsibilities and the commission set-up is agreed to.

Important elements of the contract include the amount of the commission, what has to happen for the affiliate to be paid, and the "return days" – the length of time after the initial visit by a customer coming from the affiliate's site for which the affiliate will get credit for that customer's purchase. A long "return day" period is better for the affiliate, as it allows time for the customer to comparison shop and acknowledges that, having learned of the site fro the affiliate, the customer may later return directly to the merchant's site. Programs differ on which affiliate gets credit if a customer clicks through from multiple sites. The tracking software is set-up to follow the new affiliate's site.

System of Payment

The merchant will pays the affiliate when a customer who has arrived at the merchant's site via the affiliate's site within the "return day" period does whatever action has been agreed upon that triggers payment. This could be, for example, signing up for a product or service.
The payment is referred as the Cost Per Action (CPA) or the Cost Per Sale (CPS), depending on what the agreed trigger is. This is all in the care of the tracking system, which may also generate the payment.

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