Affiliate Basics- Don't get conned before you start.

Affiliate this, affiliate that, masters of the affiliate universe!!.

Don't you just hate it when someone says that you can be super rich just by putting one of their links onto your site?

I do, and I realise that they are trying to make a good bit of cash through affiliate links, but give us the truth!

So, affiliate basics: What is an affiliate programe?

Well, you sign up to a company, for free, and they give you links or banners to their site or to their products. The links that they give you have your code embedded within them. So, if someone clicks through on one of those links and buys then you get the credit and a percentage of that sale. You don't pay for anything (no shipping, returns, customer complaints etc).

It is a scheme that pays for results, and it is one of the best things that ever happened to the Internet. It has been occuring off-line for ages, but Amazon brought it out into the open and they haven't looked back.

However, because this is now seen as the must thing to do, there are bandwagons of companies offering major incentives just to get a better army of sales people. However, there are also many people who try to recruit affiliates with very poor incentives knowing that people will just see and sign up.

That is what I want to clear up today...not all affiliate programes are any good..

But if you do go down this route, and do it well, there is plenty of money to be made. Always remember though that there are other people who sign up to the programes as well...so you are usually in competition with those people.

So what do you need to check before you sign up?

0. Signup?
The golden rule to all affiliate programes is this: If you have to pay to sign up, leave it well alone. Affiliate programes are meant to be free to signup, you are doing them a favour. When someone asks for a certain amount to join their affiliate system, they are being greedy and too selective.

1. Is the product any good, and is it relevent to your site ?
This is one that always gets to me. I see affiliate signs everywhere for casinos or for dating sites. But on music sites? Unrelevent sites won't convert any people into buyers so don't do it. Check to see if the product is any good by actually buying it and trying it out. If you wouldn't buy it then don't get your visitors to, because they will just ask for a refund. A review of a product that looks like it has been actually tested is much better than the companies sales blurp...100% guranteed.

2. Is the company any good?
You are representing the company, if the company sucks and blows at the same time, then you will too, even if your side of the sales process is really good. Check them out, what are their customer sales like?

3. Is their sales page any good?
When people come onto your site and then click on the link to the sales page/ product page that is you click through rate (total amount of people clicking through the affiliate link, over, the total amount of people going to your initial page. You could have the best converting site in the world that people just love. But if the page where you are sending them to is pure kindergarden, then you will have no chance in making a sale. You need to find out conversion rates (the amount of people who went to that page who actually bought something 5-10% is very good- 5 people out of 100 bought). If their site is really good, then they should be shouting the rates from the rooftops, if not, enquire.

4. How many other affiliates have they recruited?
Now this is important because it determines how much competition you have. Too much competition and you will be spending more to promote the products. Some good affiliates will actually have a cut off line and won't accept a certain number of affiliates.

5. What is your percentage?
A very important one this. You are actually doing the hard work, so you need to get paid. Now are you going to risk a lower commission rate for a good product? For hard goods (computers, lamps, discs, hardback books etc) you are looking for a commission rate for about 3-20%. 3% is too low, 20% is high, so look at it carefully. For soft goods (like computer programmes, ebooks etc) you can have commissions from 10% all the way to 75%, the average being 40%. Soft goods are more marketable because they are instant products- you download after you buy, but they have more competition.

6. How do you get paid?
Paypal and Cheque are the two commonest ways to get paid. Never receive direct cash. A cheque can be cancelled and traced so it is better for you. Also when do you get paid? After a certain amount has been first achieved? Twice a month, once a month? Also how do you check your account, via password etc? Make sure as well that you know if you have to pay (a couple of dollars) to receive a cheque, like with Clickbank.

7. What is the cookie?
When a person clicks through your link, usually a cookie (a little text file that has your details on it) is placed on their computer so that it tracks the sale back to you. Now what will happen if the customer went away, thought about it and then went back onto the site without clicking on your link. Do you get the commission?

This is something that alot of people forget about and they lose commissions big time. make sure that the tracking cookie is set for a minimum of a month. If they have to buy straight away then you will lose money because usually people like to browse and come back at a later date after checking out similar products. Some of the best affiliate programmes have yearly cookies, some have programmes to track the computer rather than loading a cookie onto it (most security software wipe out cookies), others offer a lifetime cookie.

The problem with lifetime cookies is that if you have made all the right moves and spent time with the customer and they bought through you, and you know that they did, if they already visited a site previous to you that had a lifetime cookie, they get the commission.

8. What do they offer you to promote their stuff?
It may be well and good trying to sell something, but it would be nice to be given a helping hand wouldn't it? Some good affiliate sites offer email text, ebooks, articles, free software and a whole host of other affiliate information to help you make money for them. This is a good relationship because they want to help you, and usually the stuff that they provide has worked because they try it out.

9. What tier is it?
Now this is not usually necessary but it is more rewards for you. You are first tier, you signed on to become an affiliate. Now you can recruit other affiliates using links embedded with your code to make money for you. They are therefore called, second tier affiliates. Usually the commission you make on their stuff is smaller (5-10%), but it is extra money for doing nothing! It is not a pyramid because people have to buy the product first.

So there we have it, 10 points you need to check out before you even start signing up to any affiliate programe.

Next we shall chat about some of the ways that you can promote affiliate products. But this is such a large topic so you will see affiliate related articles come up alot of the time within this blog.