Today, it is incredibly easy to setup a website, write some great content, put together an online marketing campaign and make a fairly decent living. What most new website owners struggle with however, is deciding on a monetization model for their site. In today’s post, we are going to explore how the top affiliate programs work and why they might not be the best model for generating revenue. Let’s jump right in.
What Are Affiliate Programs?
To put it simply, affiliate programs also known as associate programs are agreements made between the owner of a product or service and a publisher (website owner) to sell their products or services and receive a commission when they generate a sale. It is a great way for a publisher who wants to sell a product or service, but doesn’t want to carry an inventory at the moment to get started.
Affiliate Program Payment Options
Affiliate programs typically run on three different payment models. The first two mentioned below are the most popular among affiliates. Pay-Per-Sale (also referred to as cost-per-sale): With this payment model, the owner of the product or service pays a publisher each time a sale is generated. This is often a percentage of the amount of revenue generated by the sale. Pay-Per-Lead (also referred to as cost-per-lead): With this payment model, the owner of the product or service pays a publisher each time a lead is generated. Publishers really like this model, because the lead doesn’t have to spend any money for them to get paid. They just have to fill out a form and click submit. Pay-Per-Click (also referred to as cost-per-click): With this payment model, the owner of the product or service pays a publisher each time a click is generated. This model is slowly becoming obsolete as it is very easy to manipulate and submit fraudulent clicks. Because of this both owners and publishers prefer the first two payment models.
Affiliate networks, also known as affiliate brokers act as mediators between the owner of the product or service and the publishers. These networks make it very easy for both owners to find new publishers and publishers to find new offers to run on their sites continually. Some of the more popular affiliate networks are Commission Junction and Shareasale.
Becoming An Affiliate
Signing up as an affiliate is actually quite simple. The first thing you need to do is find an affiliate marketing program that compliments what your website is about and sign up. As mentioned above, you can also sign up with an affiliate network to be introduced to a slew of the very best affiliate offerings, instead of seeking out individual owners and signing up one by one. You should be aware however, that the owner or the affiliate network can decline your application for a number of different reasons. Please make sure you read the terms of service and that your website is in line with each requirement. Once you are accepted, you will be given links, ads, and other marketing collateral to use on your website and begin earning commissions based on the payment model.
One massive downside to online affiliate marketing is the fact that you are at the mercy of the owner of the product or service you are promoting. If they feel the quality of your leads or sales is low and not providing the ROI they were hoping, they can very quickly remove you from their program. This leaves you scrambling to find a replacement while each minute you are losing potential revenue. You are also at the mercy of their inventory. If they are out of stock or they only have enough budget for you to generate 100 leads per month, you might only be generating revenue for 2-3 weeks of the month, versus every day of the month. Affiliate life is really tough, so make sure you know what you are getting into before you take the plunge.
Affiliate Program Alternative
One alternative to participating in an affiliate program is to participate in our app recommendation program, also known as a mobile app affiliate program. If you are unfamiliar with the youAPPi app recommendation technology, in essence, you can recommend mobile apps for your visitors and readers to download and earn a commission each time an app is downloaded.One really amazing feature of mobile app affiliate program and recommendation service is the sophisticated algorithm behind it. Simply put, our algorithm pays close attention to the content being consumed by each individual and tailors their recommendations based on their specific “profile”. This, in addition to the fact that app monetization is available for android and apple applications, available in every country, and fill rate is 100% – NO SUPPLY SHORTAGE makes it hard to beat!So there you have it… how affiliate programs work, some of their pitfalls, and a solid replacement for monetizing your mobile blog or mobile application. What do you think? Do you want to take our app recommendation technology for a spin? If so, you can sign up here for FREE!