Pay per sale programs
: Also called a revenue sharing program, the affiliate is provided with a
percentage of the profits when they make a sale usually between 10 percent and 25 percent.
Larger companies may pay more.Generally, Pay per sale programs have highest payouts than
any other programs and the reason for this is that the merchant has actually brought in money
from the sale so he gives you a cut.
There are a number of other arrangements as well. Basically, a company could set up an affiliate
program based on any action that would benefit them, and then pay their affiliates based on the
number of customers the affiliates send them who perform that action. There are a couple of
very popular variations on these basic payment plans:
Two-tier programs: These affiliate programs have a structure similar to multilevel
marketing organizations (also known as "network marketing") such as Amway or
Avon, which profit through commission sales and sales recruitment. In addition to
receiving commissions based on sales, clicks or leads stemming from their own
site, affiliates in these programs also receive a commission based on the activity of
affiliate sites they refer to the merchant site.
Residual Programs: Affiliates in these programs can keep making money off a
visitor they send to the site if the visitor continues to purchase goods or services
from the merchant site. Many online merchants who receive regular payments from
their customers (such as monthly service fees) run this sort of affiliate program.
Now...in the end some tips for Merchants to make their Affiliate Programs
reap them maximum sales of their products:
Let visitors know, Let your visitors know that you are running an affiliate program. Have a
sign-up form on your website.
Pay Affiliates on time , by always paying your invoices in a timely manner, you can quickly
establish a good reputation with Affiliates. Also, keep your payment amount consistent as
decided at the time of agreement.
Validate sales quickly and often . To ensure you have a successful program prompt validation
of sales is paramount. Delayed validation will substantially damage or destroy a program. This
can be irreversible as bad news spreads quickly in the affiliate marketing community.
Share your data , if you have a data file of your products, allow your Affiliates access to it. Doing
so means that you will get more of your products on more websites and, in turn, more pages with
your products will be indexed by search engines. This will ultimately increase the number of
products you sell.
Communication is key . Always try to inform Affiliates of changes to your service or products so
they can adjust their campaigns. It is also good to keep them informed of up and coming
downtime or site changes. Finding out after the event, that something major has changed, never
goes down well with Affiliates. Remember this is your virtual sales force so keep them in the
Reward your top performing Affiliates with prizes for meeting targets and so on. You can, for
instance, let them know you are running a competition to win (decent) prizes for those who
achieve a defined sales target.