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What are affiliate programs and are they as effective as they propose to be?

By Brown Ezilon.com Articles Published 06/18/2009 | Affiliate Programs

So what is an affiliate and what does it really do? Are affiliates really effective as they propose to be?

What affiliates do in fact is refer visitors or possible clients to your website; in exchange they either receive a percentage of the sale generated thanks to their referral or you pay them a fixed price for the service.

Nearly all software affiliates are paid a percentage resulting from the sale they generate, although there are other models such as CPA (cost per action), which are paid each time someone clicks on your website, whether this results in a sale or not.

Supposedly affiliate programs will increase the sales on a website, but is this really true? They promise a sure path to success for those who register to their affiliate program. But who is the real winner in these cases? It is in fact the retailer who wins the first prize, indeed they would not be offering such services if the profits were low.

You can earn good money in the affiliate domain, if you host another link or a banner on your website, for example. You will be earning a percentage on the sales you indirectly produce. But if you are hoping to earn from building a website with the sole aim of earning through affiliate traffic, then it is probably a waste of time and money for the returns you will be receiving! A website is expensive to run if you want to drive traffic towards it in order to earn money by hosting another website. If you want your website to work as an affiliate, you will have to spend hours on it and money, so think before you start, is it really worth the while?

A web site should really have the aim of selling a determined product or service and not be used for the sole purpose of gaining from the affiliate market, this market is too tough for private individuals, it is actually so for the larger groups, who regularly give up! This is because the Internet is so saturated with affiliate programs, that it has now become difficult to be noticed on the web, you would have to find a real attention grabbing ad to attract the viewers attention.

So your best chance to earn a good income is by creating your website with a definite aim, that of selling your product or service, while hosting other websites as an extra possible income, do not use it just for affiliate marketing you will find it is a waste of your time and effort not to mention your money!