Google Advertising Tools, 2nd Edition

Understanding Affiliate Programs

Affiliate programs go by many names, including affiliate marketing programs, virtual marketing, revenue sharing, associate programs, Internet affiliate marketing, direct marketing, performance marketing, partner marketing, pay-for-performance, and referral programs. The names themselves give you an idea of what is involved. But as Shakespeare put it in Romeo and Juliet: What’s in a name? That which we call a rose by any other name would smell as sweet.

By whatever name it’s called, an affiliate earns a commission from a merchant for generating a desired result. The specific result that must occur for the affiliate to earn a commission is (or should be) spelled out, and specified contractually, when the affiliate signs up for the program.

Warning

Read the fine print carefully when you sign up for an affiliate program. These agreements can be complicated, and you should be completely clear about exactly what commission you are supposed to get under all the circumstances covered by the agreement.

Most often, the event that leads to a commission for the affiliate is (as I’ve already said) a merchant sale resulting from the affiliate’s promotion. But this need not be the case. In some (less common) circumstances, providing a merchant with a qualified sales lead may be enough to generate a commission for the affiliate.

Joining an affiliate program is potentially lucrative, but requires real attention and care. If not done right, you may not make any money from ...