Referral Affiliate Programs- Referral affiliate programs are a popular form of affiliate programs. Referral affiliate programs aren’t just great for the merchants but also the affiliates. These affiliate programs are a great way to promote your website and a great tool to help you earn some money online. Keep reading this referral affiliate programs review for more information on how to use them from a webmaster standpoint and an affiliate standpoint.
Referral affiliate programs are very similar to affiliate programs. In fact, those two are sometimes interchanged. In this referral affiliate programs review we are going to explain to what are referral affiliate programs, how to run a referral affiliate program, and what the costs are for a referral affiliate program. We are going to concentrate more on the merchant side of referral affiliate programs but still talk about some affiliate programs for money making person in you!
What are referral affiliate programs?
Referral affiliate programs is a form of internet marketing in which the merchant purchases an affiliate tracking software program or joins an affiliate network in an effort to promote their products or services. To complete the circle of referral affiliate programs you must have an affiliate. An affiliate is a person who is not associated with the merchant and promotes the merchant’s services or products for a commission. They are simply a middle man between the consumer and business.
How to run a affiliate program?
Running a referral affiliate program is pretty easy. Especially if you stick to a hosted affiliate tracking account or an affiliate network. If you decided to purchase affiliate tracking software it is going to be more work for you. Let’s briefly talk about hosted affiliate tracking programs. When you sign up for a hosted affiliate tracking program, the host will do all the reporting and tracking for you. You do not need to purchase any affiliate tracking software because you will use the host’s. After you get the reports from the host you will need to pay your affiliates. Affiliates that you need to find on your own and recruit them to promote your business. The host doesn’t supply you with affiliates. If you choose to use an affiliate network they do all the work for you. They provide you with reports, tracking codes, affiliate tracking software, and act as a middle man between affiliates and merchants. The affiliate networks charge you a fee for each commission paid out. Affiliate networks are very easy for merchants to run. If you are a large company or have a person that knows how to run an in-house affiliate tracking program, then affiliate tracking software is what you want. This is when you buy a license for the software, install it on your server, and do all the work. There are no additional fees to be paid after you purchase the license.
What are the costs of a referral affiliate program?
That really depends on what type of referral program you are going to run. We mentioned three types of referral programs in the above paragraph. For a hosted affiliate tracking account you can expect to pay around $30.00 a month. For an affiliate network account you might have to pay a set up fee but the real fee is going to be about 25% on top of the commission that you pay the affiliates. For affiliate tracking software you can get some of the best affiliate tracking software starting at about $99.00.
How does an affiliate make money?
When an affiliate joins a referral affiliate program, the merchant will determine how the affiliate is going to make money. There are three main ways an affiliate makes money: pay per click, pay per sale, and pay per lead. Pay per click is typically the least amount of commission because the merchant only pays when people click on their advertisement and are directed to their site. However, there are some major keywords that affiliates will make more money on due to the popularity of the keywords. Pay per sale is when the merchant pays a commission when a sale is completed. The pay per sales also factor in charge offs or returns so it is a constant moving program. Finally, pay per lead is when a merchant pays a commission after a person has submitted some type of information for the merchant to do follow up on. Pay per sales are typically the highest commission paid with pay per lead below sales. Think of pay per lead similar to referral programs in the real estate industry.
No matter who you are, you can make money from affiliate software programs. They are a great source of revenue and can help out a business at the same time. Many of the top businesses use affiliate programs so don’t be afraid to try it out!