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Affiliate Marketing: Increasing Money and Traffic

by Ty Carson, January 31, 2008

Affiliate marketing is designed to earn businesses more money by increasing traffic to their Web site. Affiliates who send traffic to businesses are also able to earn a few bucks as well. This article will cover the basics of affiliate marketing for businesses and Web designers, how to go about finding affiliate Web sites and merchant businesses, as well as how to effectively use affiliate marketing to grow and increase income for your business. If you are not currently involved with affiliate marketing, it's something you may want to consider. The right affiliate campaign can more than double your business's income. Figure 1 below shows the basic steps on how affiliate marketing works.

Figure 1 - How Affiliate Marketing Works

Three of the most common forms of affiliate marketing are, Pay Per Click, Pay Per Lead and Pay Per Sale.

  • Pay Per Click (PPC): Also known as Cost Per Click (CPC). These programs pay the referring Web site a specific amount for each click-through lead that is sent to the merchant Web site.
  • Pay Per Lead: Also known as a Cost Per Action (CPA). These programs pay the referring Web site a specific amount for a specific action that is done on the referring Web site, such as signing up to win a free car, activating an account or filling out an information form.
  • Pay Per Sale: Programs that pay the referring Web site a commission that is either a percentage of the sale on the merchant's Web site or a flat fee for each sale referral sent to the merchant from the referring Web site. Each affiliate marketing program is different, so choose the form of affiliate marketing that works best for your Internet business.

Finding affiliate Web sites that are willing to send site traffic to businesses and merchants can be difficult, which is why affiliate programs exist. Affiliate programs take out the dirty work of monitoring traffic, sales tracking, generating reports, performing the payouts to the affiliate Web sites and legal issues. Some of the more popular affiliate programs to set up an account at are,,,, and Below is a big list of affiliate programs that can be used to your advantage in starting up affiliate marketing to build Web site traffic and income.

There are many ways to effectively use affiliates to grow and increase income for your business. Just by getting involved with affiliate marketing, you are essentially building an online network for your company. Benefits such as branding, online credibility, viral marketing, internet traffic leads, increased return on advertising and boosting sales are all benefits from affiliate marketing. Affiliate Web sites are also another source of income for your merchant Web site - the hardest part is building up your affiliate accounts. Affiliate Web sites will also cause an increase in inbound links and may increase PageRank in the search engines, which can improve search engine rankings for your merchant Web site.

It would also be a good idea to use tracking tools to measure performance on your Web site, such as Omniture, WebTrends, ClickTracks and Google Analytics Urchin software. Calculating your Return on Investment (ROI) and sales leads are key to deciding whether to continue, modify, or stop your affiliate marketing strategy. In most niche markets, affiliate marketing performs amazing results for Web sites and rakes in a lot of extra income with effortless work.

When running your affiliate program, you should avoid any action that may damage your company's reputation. The main goal here is to make money, so don't compete with your affiliates. Reward your more successful affiliates with more money and break them up into tiers according to how many sales they create for your Web site. Be honest and give them the exact Web site statistics they need without modifying any of the data or hiding data that should be available to them. Think of making a game out of affiliate marketing by putting a prize at the end for all of your affiliate Web sites.

By getting your business into an affiliate marketing program, new opportunities are available to increase your company's Web site traffic and Internet sales profit. Choose the best type of affiliate marketing program that will work for your business. Start to grow your affiliate network and stabilize that extra income by offering everything that your affiliates need to continue selling your products online. Without affiliate marketing, you are missing potential sales that could be showing up in your income statement as extra profits.

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