Who Are Those People Called Affiliates?

Who are affiliates?

Affiliates fall into three types. For clarity, we have excluded powerhouse shopping properties and large corporate sites. We will call the three types power, mid-range, and non-productive affiliates.

1. Power affiliates

Power affiliates, who make a living wage, are a minority of those using affiliate marketing programs. They usually have a network of sites, and spend several hours daily maintaining traffic to these sites. Power affiliates create a large revenue stream for the merchants. Therefore, they enjoy several perks; for instance, power affiliates often have the influence to bargain with merchants for more advantageous deals. Power affiliates often work from home. Many power affiliates are also merchants to vendors who want to expand their revenue base. Power affiliates account for roughly 10 percent of all affiliates. Of course, power is a relative term. For example, a highly influential site with a small amount of traffic can command high rates because of its market impact.

2. Mid-Range Affiliates

The second type of affiliates makes some supplemental income. These people often maintain full-time "dirt world" occupations. These affiliates may have one popular site or a network of small sites, but they either control significantly less traffic, or less targeted traffic than the power affiliates, or have difficulty converting page views to clicks, actions, or sales. These affiliates comprise about 10 percent of all affiliates. Merchants like to cultivate these relationships because many mid-range affiliates can go on to be power affiliates.

3. Non-Productive Affiliates

So what about the other 80 percent of affiliates? Unfortunately, they make little or no money. Many of these sign up for a program, intending to use it, but never even put up paying links. Others put up the links, but don’t control enough traffic to support sales. Few just don’t have the 1 - What is Online Affiliate Marketing? An Greathowtoebooks.com eBook • Affiliate Marketing 101 — 13 knack. The majority of non-profitable affiliation results from ignorance or apathy. Affiliate marketing is a competitive business environment, and, as in any industry, many who attempt the business will fail to perform.

Why should I be an affiliate?

The three main reasons to become involved with affiliate marketing are money, dreams, and freedom.

1. Money

You already have a concept. Why not make your knowledge work for you? Strategically placed paying links can bring in extra income. The amount you earn, of course, depends on a number of factors but, if you have visitors, you can harvest this traffic and convert it to revenue.

2. Dreams

Money and dreams are not mutually exclusive, and online affiliate marketing allows you to have both. Here’s how it works. If you always wanted to sell fine jewelry, books, cookware, or other tangible items, now you can. Unfortunately, you don’t get to fondle the merchandise, but you also don’t have to worry about buying, storing, or shipping it.

3. Freedom

Online affiliate marketing allows you the freedom to choose your own schedule, and to work from home, from the road, in the middle of the park, or on the beach. Well I hope this works for you. Need more ...?