Initial question: “What is an Affiliate Program?”
Affiliate programs, sometimes referred to as associate programs, are merely a means for businesses to obtain a large volume of customers, sales, or members without having to actively seek out new employees.
Affiliate programs are easy to understand if you are familiar with network marketing in the real world.
These businesses hire a sales force that is compensated only on sales or direct leads or referrals.
You advertise their goods and services when you work as an affiliate.
They will give you a commission for each membership or sale you bring in on their behalf in exchange.
When and how are you paid?
What is the commission or pay-out structure?
What number of tiers or levels will you be paid for?
Is it possible to earn commissions as a free affiliate without having to become a paid member?
It will be difficult for you to make any money if you sign up people who are also joining for free through an affiliate program that offers free enrollment to you.
How frequently do checks get sent out, and is there a certain amount you have to make in order to be paid?
You might have to wait a while to get paid if you need to make $100.
Any program’s pay-out structure should be carefully considered.
Are you only compensated for direct sales and sign-ups, or are there other ways to make money?
Are you compensated for sales made by your affiliates?
These two pay out plan examples are provided.
First case
Sales On a Single Tier or Level
Only the direct sales that you generate are reimbursed.
You enlist in a program that charges $19.95 per month for paid membership and pays you $10.00 per month for each affiliate you enlist that will cover the $19.95 monthly cost of the goods and services offered by the company.
You receive $10 from each of the ten individuals you sign up who pay $19.95 a month.
For as long as all ten continue to be active affiliates, you will receive a $100 check every month.
You can only earn money with this program by selling to customers you directly sign up for and from sales you make yourself.
You need to sign up more people who are willing to pay $19.95 a month if you want to increase your income.
This program only has one tier.
Only direct sales or sign-ups are eligible for payment.
Second Scenario
Tiers or Levels
You are compensated for the sales of your affiliates as well.
You sign up for a program that pays you $10.00 a month for each affiliate you directly sign up, plus an additional $3.00 for each successful sign-up or sale made by your affiliate.
Similar to the single tier, you will still receive $100 a month from those same 10 people, but things get more exciting now.
You will receive an additional $3.00 for each paying customer your affiliates sign up or for each sale they make.
You will make $3.00 times 50 individuals if each of your ten affiliates signs up five new affiliates who will pay the $19.95 monthly fee.
Thus, you will receive a monthly bonus of $150.
You are now making $250 as opposed to $100.
Give it some thought for a moment.
Alright, end of the time.
Which plan is the better one, in your opinion?
The majority of online business owners either jump in headfirst or are too scared of affiliate programs to take any action.
As a result, both suffer.
While the other person never learns the ropes and gives up, leaving them in the same situation as the first, the first person never learns the positive impact affiliate programs have on one’s finances.
The cycle repeats itself because there are so many excellent affiliate programs available that it can be challenging to select just one.
How can this issue be resolved?
Unbelievably, the solution is very straightforward.
DO YOUR RESEARCH!
You can ask and you will be given.
Don’t make assumptions if your goal is to become a successful affiliate and train other successful affiliates.
You must possess expertise in your field.