Home Business Tips – The Power of Affiliate Programmes

Why are there so many Affiliate Programmes on the Internet? Are they really good? Can you really make money with any of them? Which ones are the best and which are the worst?

So, what exactly is an Affiliate Programme? Well, technically, an Affiliate Programme is one that you join and make your money promoting the programme itself. Some Affiliate Programmes offer free membership while others that offer free membership, do not allow you to make money with them unless you upgrade to paid membership.

Affiliate Programmes have many ways in which you can get paid. Some pay you a flat commission for each product you sell while others pay you a set commission for each member you bring in. Still there are others that pay a variable commission based on what level you are in the membership chain.

Let’s take a look at Affiliate Programmes that concentrate on selling actual products, as opposed to Programmes that mainly involve getting people to sign up under you in order to collect commissions.

Product-based Affiliate Programmes are very popular with people who like to sell. However, the problem is, not everybody is good at selling, that is why these programmes try to make it very attractive to Affiliates to sell their products.

Companies may set the price and commission structure themselves or like ClickBank rely on the vendors who create the products to set the prices and the percentages of the commissions. Company like Clickbank encourages vendors to set the commissions high enough so that people will want to sell them. ClickBank suggests commissions as high as 70% and no less than 50%.

Product-based Affiliate Programmes are very attractive but they require you to be a good sales person. The products may range from Internet marketing to health and fitness. Just about anything that you can think of is sold through these programmes. Most of the products are sold in the form of ebooks, but there are some companies out there that actually sell products such as vitamins and protein bars. The choice of things to sell is endless…

When choosing a product-based Affiliate Programme, the first thing you may want to do is to pick one that offers free membership. Nobody should charge you to sell their products. If they do, run for the hills because they are not legit.

Secondly, you may want to pick something that you are interested to sell. Why? Well, because products are not going to sell by themselves, you have to write advertisements for these items, therefore you may want to sell something that you know and something that you believe in.

Thirdly, you may need to look for a company that has been around for a while and has a good reputation. Why? Because selling products for a new company is risky for many reasons – you may not know how good the products are if there are no reviews on them and if you do sell a new company’s products and they turn out to be bad, this can seriously damage your credibility down the road. So you may want to make sure the products have good reviews on them.

Now, let’s take a look at Affiliate Programmes where you are not selling a product, but instead you are trying to get people to join the programme that you are in. This is commonly known as MLM, though there are some Affiliate Programmes of this type that are not MLM.

A good number of programmes on the Internet involve having to get another person to join the programme under you. This is how you make your money. Usually, these programmes have a monthly membership fee and you, as this person’s sponsor, gets a percentage of that monthly fee. The normal percentage is usually around 50%, though some programmes pay a little more and others pay a little less. 50% is pretty much the average. A programme like this usually pays just 1 level down. In other words, for each person you bring in to the program, you get paid whatever the commission is. But, if these people happen to bring in people on their own, you don’t get anything from their efforts. While in a sense there is more than 1 level, as you do have people underneath the ones you sponsored, this is not a true MLM as you don’t get paid for this second level.

A true MLM programme is one where you get paid, not only from your own efforts, but also from the efforts of the people you bring in. For example, let’s say you bring in Sherlyn and get paid $10 from her signing up. Then, Sherlyn signs up Marilyn and while she gets $10 from Marilyn’s signup, you might get $3 from her signing Marilyn up. You’ are getting paid from the efforts of those you brought in. This is a true MLM and one of the most popular Affiliate Programs on the Internet These people are hoping that the people they bring in will also bring in a number of people. With some MLM programmes going down as many as 10 levels deep or more, the potential for earning becomes very large.

In conclusion, Affiliate Programmes are powerful, however, not all Affiliate Programmes are good for all people. There are many reasons, but the main reasons have to do with whether or not the person is good at selling. And while it is true that all Affiliate Programmes require a certain degree of selling, some require more than others and some allow you to make a profit off the efforts of others.

While trying to start and build her home based business, Claire has made many mistakes in the past which resulted in months of no income and worst, has incurred high expenses that were killing her. In her case, she did not have anyone whom she could turn to in order to ask questions. She had to learn everything about setting up a home based business all by herself and from scratch. She hopes to share her personal learning experiences with people who are serious about starting and building successful home based businesses.