Merchandise

Where do I get the merchandise?

Where do I store it?

In most cases, the merchant handles the merchandise, actual purchase, packing, and shipping, so you usually never see the actual merchandise. In fact, you don’t need to have anything except reliable access to a computer and an Internet connection.

What are my responsibilities as an affiliate?

1. Represent a product or service. Represent the merchant’s product or service on your site through the use of links. These links may take the form of a banner, a text link, a search box, or even a JAVA applet.
   
2. Drive traffic (get visitors) to your site. Establish a steady flow of targeted traffic to your site in order to increase your potential to earn commissions. Once a customer uses your links to connect to the merchant, the merchant should pay you. Different merchants specify what constitutes an action worthy of compensation, and these can range from a customer just seeing the ad to actually purchasing the product. How much you get paid will also differ from merchant to merchant.
3. Read the contract. Information should be stated clearly in a contract. It is your responsibility to read the contract, even if it is long, convoluted, or boring. If you are unclear about the merchant’s policies, either contact the merchant for clarification, or look elsewhere for a more satisfactory agreement. Numerous affiliate programs exist. If you are interested in promoting a particular type of product or service, a little research should help you find a reliable program that meets your needs. Here are two directories of affiliate programs to get you started (we’ll be telling you about many more later): Associate Programs.com www.associateprograms.com 2-Tier Affiliate Program Directory www.2-tier.com
4. Monitor your site and links. You must check your site and links regularly to make sure everything works properly. Merchants will contact you if changes should be made. For example, if a merchant changes its linking code, you should get an email specifying how this is done.
5. Monitor your statistics. The merchant should provide you with statistics. You need to monitor your statistics to make sure you are being credited properly. Your statistics reflect the success of your merchandising plan and allow you to tweak your selling process to increase your profit.

   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, who make a living wage, are aminority 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 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 ofthe park, or on the beach.

Sources : Wayne and Kim L.T. Porter, rights@intellectua.com