Table of Contents

Introduction .......................................................................................................................3 Chapter One .....................................................................................................................4 What is Affiliate Marketing? ..........................................................................................4 The Basic Plan ..........................................................................................................4 Why an In-house Affiliate Program is Great ..............................................................5 Common Terms ............................................................................................................5 Chapter Two .....................................................................................................................8 Ways to Promote Your Affiliate Program ......................................................................8 Search Engine Jargon Clarified .................................................................................8 SEO, PPC and Affiliates ............................................................................................9 Strong Words on Affiliate Networks ...........................................................................9 Chapter Three ................................................................................................................11 Helping Affiliates with Business ..................................................................................11 Making Life Easier ...................................................................................................11 Be Sure to Individualize ...........................................................................................12

Introduction
Do you have a website? If you answered yes to that question then you should know that you can actually generate income and far more profit if you incorporate an affiliate program into your site. This is among the most modern forms of marketing and it works in a very simple way. You create a system that rewards affiliates for electronically encouraging valuable traffic to visit your website and/or make a purchase of some kind. There are many ways that affiliate marketing can work, but fundamentally it is a wonderful way to reach an audience that has a valid interest in what you offer, but which may not automatically find its way to your site. The classic example is the affiliate marketing done by Amazon.com. They have more than five hundred thousand affiliates at the time of this writing and each of them will use their affiliate tools differently. The one similarity between them all, however, is that they are all driving extremely valuable internet traffic back to the original merchant site! This is done without any further input on the part of Amazon.com, and they are paying only small amounts for all of this fundamentally free traffic. You can do the same thing if you use affiliate marketing programs and choose the most appropriate affiliates for your particular message, products, or site. This book is going to walk you through the basic details and explain the many reasons why you need to explore affiliate marketing if you want to dramatically increase the size of your bottom line!

Chapter One
What is Affiliate Marketing?
The most basic possible answer to the question of what is an affiliate program is that it is a method for making far more money from your website than you had originally intended. It works in the simplest ways possible, but you have to understand a few things before you can make it really work for your business. What do you need to know? Well, the fundamental structure and flow of affiliate marketing is going to be the first thing to master.

The Basic Plan

You create all of the content on your websiteright? Within that content, you can create links to products available through your site, or from another site too. For example, lets say that you are someone with an informational website about dahlias. These are flowers grown from special tubers, but you only make information available about dahlias through your website. You decide to earn a bit of income by becoming an affiliate of a few businesses related to your subject. For exa mple, you become an Amazon.com affiliate in order to profit off of any gardening books recommended through your site. You partner with a few dahlia selling companies to also make some money off of the sales of dahlia tubers that begin from the links on your website as well. Nice, isnt it? Now, what if you are the business at the other end of those links? What we mean is what if you are Amazon or the dahlia tuber companies? If you are these companies then it means you have an existing affiliate program, and THAT is what we are going to cover in this book.

Why an In-house Affiliate Program is Great

What makes an affiliate program good for the business who offers it? After all, it means you will still have to deal with the more difficult work of handling and shipping items if you are a merchant site. It also means that you have to administrate that affiliate program too, doesnt it? Yes, but it also means that you have the opportunity for dramatically increasing the traffic to your website and earning a lot more in terms of sales or conversions of visitors into paying customers. Just consider that affiliate marketing provides two huge solutions: It helps a content driven website to make income from all of its traffic It helps merchant sites to get more people than ever to purchase products.

They do so in the simplest of ways; they pay commissions to the affiliates for posting links that lead traffic back to their site. Some give commissions only if a purchase is made, but some provide compensation only if the affiliates link is put to use. Naturally, this means that affiliate programs all work in different ways, but have the same general results.

Common Terms
These results include the merchant, the affiliate, and the consumer using the Internet. The merchant, for this book, is your business and the affiliate is anyone with whom you cooperate and compensate for delivering traffic, or the consumer, to your site. You might do this through: Pay per purchase agreements This sends a commission to the affiliate at any time that a sale results from a consumer using their link to get to the merchant site.

Pay per lead This is an affiliate program that provides compensation if a link from an affiliates page leads to a consumer providing their contact information (becoming a lead).

Pay per click This is the type of affiliate program that rewards an affiliate whenever a consumer clicks on the link embedded in the affiliate site.

What is so interesting about the ways that affiliate programs are structured is that there can be compensation based on a one time event, or things can continue indefinitely into the future if that benefits the merchant and the affiliate more. For instance, there can be the: Tier system This allows the affiliate to profit from its own activities AND to profit from any activities generated by its recruits. For instance, the Amway company is famous for its multiple tiers of affiliates who are continually earning a small percentage of their own recruited affiliates sales. Residual system Yhis is an arrangement that permanently links a consumer to an affiliate. For instance, someone buys dahlia tubers through a link that you have embedded at your informational website (this is from our earlier example). If you remain an affiliate, you will continue to earn a small profit from all future purchases made by that consumer. This is also the sort of system used in subscription or service sites that have monthly fees associated with them. Before choosing the type of rewards and systems to use, you have to understand that all affiliate programs that are successful tend to be so because they choose companies, affiliates, products, or sites that partner well with what they have to offer. Lets go back to that dahlia site that we used as an example. This is not the sort of informational or content driven site that would find affiliates interested in dog food. They would be far better off if they chose to accept affiliate offers from fertilizer sites, flower seed sellers, etc.

This takes us into the subject of the next chapter, which is the best way to market an affiliate program. What does the type of affiliate have to do with promoting the program? Well, just consider some final terms that you will hear a lot when discussing marketing of any kind SEO and PPC marketing. These are the two chief ways to ensure website success, but they are also directly related to properly marketing your affiliate program.

Chapter Two
Ways to Promote Your Affiliate Program
Though many business and website owners are aghast at the recent changes to the Google algorithm, known as the infamous Panda upgrade, these changes havent really negatively impacted well marketed affiliate programs. This is because a savvy website owner is going to market their affiliate options to a suitable set of candidates through things like traditional SEO and PPC advertising, which are always going to reach the most suitable audience possible.

Search Engine Jargon Clarified

Are these terms a bit over your head? SEO means Search Engine Optimization, and it is usually viewed as an optimal method of affiliate program marketing because it creates the most organic results possible. You will be making an ongoing and persistent effort to identify the appropriate keywords for your intended audience, and will then integrate these words and terms into the individual pages of the website. Doing this means that you will also spend time acquiring back links that are valid and valuable to SEO and higher search engine results. PPC means Pay Per Click advertising and it is not organic at all. You simply purchase ad space with the major search engines (currently Google Adwords is the biggest name in PPC ads) and they ensure that the ads you send them will appear on pages or results that are directly related to them. When you do a lot of SEO and partner it with PPC ads, it is likely that your site will appear or rank highly in all search engine results.

SEO, PPC and Affiliates

When you get good placement in relevant searches, you are going to also get attention from those who work, or have sites, in related fields. If you ensure that you apply this sort of marketing specifically to your affiliate pages and information, it is also going to position that information highly in search engine results. What does this mean? It means that as people who are looking for information or products directly relating to your site get their results, they are also going to see your affiliate program! Naturally, one of the smartest ways to market the affiliate site is to advertise it directly on your site too. Make sure that your web page design incorporates a very bold and clear link to the affiliate marketing area of the site and that the tags, headers, and text utilize the same keywords that function well within the SEO and advertisements.

Strong Words on Affiliate Networks

We also suggest that you checkout options for affiliate networks. These are basically the classic middle men who can manage almost all aspects of your affiliate program, even directing potential affiliates to your door. The way that they work varies widely, but the ones that seem to be the most comprehensive and useful will begin with recruiting pages that work like a directory. This means that a potential affiliate hoping to enhance a website can browse through an affiliate networks online directory of opportunities. The network can then handle the registration process and begin tracking all of the activity done by that affiliate. The network will even be able to help the affiliates with such things a links and setting up their sites. What does this mean to you as the merchant? It means that you have to be willing to give the network a percentage of the profits from the affiliate program, but it cannot be overlooked that a good network can save you a huge amount of time, money and hassle. 9

Just consider that traditional affiliate marketing requires: The ID number for the affiliate A system of links that the affiliates can use without fail A website that works with the links given to the affiliates, and which can include: o Specific product pages o Affiliates only storefronts o Special home pages o Regular pages All of these things will have to head to the merchant URL, which is going to have to have some sort of program for managing when an affiliate link has sent a visitor to the site. It will then have to ensure that the visitor is at the actual merchant site and use cookies of some kind to keep track of the affiliate-generated activities. The affiliate networks can do all of that, plus they tend to offer even more types of management options. They can often report on the number of clicks that an affiliates links generated, track sales or enrollment that resulted from an affiliates various links, and even keep track of the total number of website visitors to an affiliates site who viewed the merchants information. The networks are also great for reporting to the merchants the amount of money that an affiliate is due on a weekly or monthly basis. Are we strongly advocating networks? If you can afford setup fees, we believe that these are usually the simplest and most effective ways of administrating your affiliate programs.

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Chapter Three
Helping Affiliates with Business
You have done the SEO and PPC campaigns meant to give you a strong position in the search engine results. You have worked with some of the best affiliate networks in order to appear in their directories and listings. You are also advertising your affiliate program directly through your website. This all means that you are probably getting some inquiries about affiliate opportunities, and now is the time to understand what YOU can do for the affiliates in order to help them to promote your site.

Making Life Easier

If you want to do what the big boys do, it will mean providing your affiliates with the easiest methods possible. This is done through the creation of a series of different links and/or embeddable text boxes and more. For instance, the basic list of items would include: Text Links Give your affiliates the tools to incorporate very natural and readable text links. This means that you will provide the code that works like a hyperlink (turning black text into another color to distinguish it from the rest), but which doesnt jump out from the page in a distracting way. This is one of the ways that many affiliates really like to promote your site because it is subtle and not commercial or flashy. Search boxes This is a very clever and contemporary tool because it is actually a search engine powered by your website. When a visitor searches the affiliates site for information or products, it is actually going to generate results and links from the merchant (YOUR) website.

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Banners and Boxes These are graphics that are clickable when the coding is embedded properly into the affiliates page. These are very appealing when they use an image of an item or the logo of a company.

Product Links You can always streamline everything and provide the affiliate with a link that takes visitors directly to the product page for the item.

Registration Links If you are seeking to acquire leads through your affiliates, it may be a wise idea to give them links that get all of the details after the consumer has clicked the very first link.

Storefront Links These can be a bit of a high maintenance issue because you as the merchant have to ensure that the links are taking visitors to the most appropriate and up to date pages. Basically, they send visitors to a fabricated store page that is connected to the merchant site, but related directly to the affiliate products or information.

Shared Page Links you may have seen these already and not known it. These are links that drive the visitor to a page that has an identical appearance to the merchants page, but which is actually run by the merchant site. This is a very common system for affiliate programs for products.

Of course, you can always send all links directly to your website homepage as well. This is not the most direct approach because it means that some visitors have to navigate to the area of interest or because it may not get as many leads as desired. If, however, the only goal of the affiliate program is to get people to that homepage, it is perfectly acceptable to create a single, universal link.

Be Sure to Individualize
Remember, however, that any and all links provided to your affiliates have to be generated with their specific ID number and tracking information. This is the main

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reason that we have recommended the use of networks. They often generate all of these links upon the request of the affiliate, and cannot be incorrect or fail to function. What IS usually in your hands is the maintenance of the website and all of the pages related to affiliate marketing and the information or products it is meant to promote. If you keep things simple, however, it is likely that your affiliates will be able to use the necessary links in a simple and straightforward manner. Soon, you will be creating or receiving the reports that you need to see the results of the affiliate program and to determine just how much traffic and profit it has generated for your site. Most merchants are astounded to see that they are capable of creating a few hundred dollars per month almost immediately, and many also see four and five figure digits very quickly!

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