affiliate marketing a advice from industry experts what are the advantages to affiliate marketing?...

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An INTELLECTUA.COM eBook • Affiliate Marketing 101 — 2

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Contents

The Intellectua.com eBook: What It Is andHow to Use It

1 What is Online Affiliate Marketing?Online affiliate marketing●

What type of merchandise can I sellthrough affiliate marketing?

●

Where do I get the merchandise?Where do I store it?

●

What are my responsibilities as anaffiliate?

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Who are affiliates?●

Why should I be an affiliate?●

2 Affiliate Marketing and What it is NOTAfffiliate marketing vs. multi-levelmarketing

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Affiliate marketing vs. pyramidschemes

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Affiliate marketing vs. pay-to-surf●

3 Can I Be an Affiliate?Can I be an affiliate?●

Personality profile of a successfulaffiliate

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Factors necessary for success inaffiliate marketing

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4 Where Can I Deploy Affiliate Marketing?Places to deploy affiliate marketing●

Content Sites●

Ezines or newsletters●

Autoresponders●

Search-engine marketing●

Software authors●

Application service providers●

5 How Do I Choose a Merchant?Stand-alone affiliate programs●

Solution providers●

Points to check when choosing amerchant

●

Qualities of a good affiliate program●

What do I do if a merchantbreaches my contract?

●

What is the Affiliate Union?●

Checklist for choosing a merchant●

6 Setting Up Your AffiliationHow do I sign up with a merchant?●

How do I add this merchant's linksto my site?

●

What must a visitor do so that Iearn a commission?

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How do merchants track visitors?●

How do I read my statistics?●

7 Strategies for SuccessOvercoming common obstacles●

Power techniques●

Contents


APPENDIX AAdvice from Industry Experts

What are the advantages to affiliatemarketing?

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What advice would you give abeginning affiliate?

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What do you look for in a program?●

What mistakes do you see affiliatesmaking?

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What are the biggest hurdlesaffiliates must overcome?

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Why are you in the industry? Whatdo you enjoy most about theindustry?

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APPENDIX BAffiliate Directories and Places to FindPrograms

APPENDIX CGlossary of Affiliate-Related Terms

Reader Feedback

About the Authors

Related Intellectua.com Publications

Contents


The Intellectua.comeBook: What It Is andHow to Use It

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What is Online AffiliateMarketing?

Vocabulary

Affiliate: An individual who contracts with amerchant in order to help sell that merchant’sproduct. The product may be anything someonewill pay for, whether tangible (such as clothing),virtual (such as electronic books ordownloadable software), or information (such asexpert advice).

Associate: Another word for an affiliate.

Merchant: An individual or business who has aproduct and, in this case, uses affiliateprograms to sell this product. Usually, themerchant takes all responsibility for recordingleads and orders, and for storing and deliveringthe product to the customer.

Power Affiliate: A term used to loosely define asuccessful affiliate. Often, people have amonetary figure in their heads (usually less thanwhat they are making themselves) to determine"power affiliate" status. Power is relative andcan be equated in terms of revenue, influence,and good will.

Testimonial: A written statement of support,preferably from a respected individual orcompany. Use of testimonials in advertising cangreatly enhance sales.

Traffic: The number of times your webpage isvisited. This may be from several "unique"visitors, or from a few loyal fans.


Online affiliate marketing

An online affiliate program is a contractualagreement you make with a merchant to acquiretargeted traffic, generate a sales lead, or sell aproduct. This product may be physical (such asbooks), virtual (such as electronic books ordownloadable software), or information (such asexpert advice).

Online affiliate marketing began as a naturaloutgrowth of the popularity of "linking" to othersites. Webmasters would incorporate electroniclinks into their site, which would take the readerdirectly to a point of interest. Merchants thensaw the potential to reach more customers andbegan to offer incentives, usually money, inorder to encourage webmasters to link to themerchant’s site. Online affiliate programs beganin the mid-1990’s and are currently a popularway to earn money online. In fact, researchshows that affiliate marketing is the mostcost-effective way to generate online sales.

Please see the following sites for generalinformation and education about affiliates:

AffiliateHelp.comwww.AffiliateHelp.com

●

ReveNewswww.ReveNews.com

●

AffiliateAdvisor.comwww.AffiliateAdvisor.com

●

What type of merchandise can I sellthrough affiliate marketing?

The types of merchandise you can movethrough affiliate marketing include manufacturedgoods, free samples or trials, interpersonal

1 - What is Online Affiliate Marketing?


http://www.affiliatehelp.com/

http://www.revenews.com/

http://www.affiliateadvisor.com/



contact opportunities such as employment andcompanionship, and education. Just about anyproduct or service imaginable can be soldthrough affiliate marketing.

Manufactured goodsPrograms that market manufactured goodsinclude affiliate programs of brick and mortarstores, such as Barnes and Noble (www.bn.com),online giants such as Amazon.com, andbargain/discount stores such as1Bookstreet.com.

Another interesting venue for merchandise isone-of-a-kind, handcrafted items, such ashand-made stained glass, hand-knit sweaters,and original art. For instance, the EnchantedWorld of Boxes (www.worldofboxes.com) offersartistically designed wooden boxes for everyoccasion.

Free Samples and TrialsSeveral affiliate programs offer "freebie"opportunities, where the merchants compensateyou for giving away free samples ormerchandise. Freebie sites are popular becausethey require no investment by the consumer.Please refer to the following sites for informationabout free products:

2000Freebies.comwww.2000freebies.com

●

Freebies2try.comwww.freebies2try.com

●

Interpersonal contactFacilitating interpersonal contact is anotherinteresting affiliate opportunity. The Internet is aglobal communication medium, where peoplereach out to contact each other. Businesses



http://www.bn.com/

http://www.amazon.com/

http://www.1bookstreet.com/

http://www.worldofboxes.com/

http://www.2000freebies.com/

http://www.freebies2try.com/

understand this dynamic, and capitalize on it. Asan affiliate, you can help bring people together.This communication is changing the face of jobhunting, and many programs help people findemployment. For example, the English Nanny &Governess School (www.nanny-governess.com) helpsconnect parents with nannies. Anotheremployment site that helps people in the jobsearch is CollegeRecruiter.com.

Another popular interpersonal contact area ispersonals. One such program, the RussianBrides Cyber Guide (www.womenrussia.com), sendspersonal ads to Russia to help men findprospective wives.

EducationPrograms offer educational resources to parentsand educators. These products may includecurriculum, manipulative learning tools, andeducational media. One example is the Hookedon Phonics program, provided through thefollowing organization:

Dynamic Tradewww.dynamictrade.com/clients/clients.html

●

Educational recruitment is also popular.Merchants pay affiliates to recruit potentialstudents. Please refer to the following onlineeducation sites for examples:

The Kaplan Collegeswww.kaplancollege.com

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Robert Kennedy Universitywww.kennedyuniversity.edu

●



http://www.nanny-governess.com/

http://www.collegerecruiter.com/

http://www.womenrussia.com/

http://www.dynamictrade.com/clients/clients.html

http://www.kaplancollege.com/

http://www.kennedyuniversity.edu/

http://www.dynamictrade.com/clients/clients.html

Where do I get the merchandise?Where do I store it?

In most cases, the merchant handles themerchandise, actual purchase, packing, andshipping, so you usually never see the actualmerchandise. In fact, you don’t need to haveanything except reliable access to a computerand an Internet connection.

What are my responsibilities as anaffiliate?

1. Represent a product or service.Represent the merchant’s product or service onyour site through the use of links. These linksmay take the form of a banner, a text link, asearch box, or even a JAVA applet.

2. Drive traffic (get visitors) to your site.Establish a steady flow of targeted traffic to yoursite in order to increase your potential to earncommissions. Once a customer uses your linksto connect to the merchant, the merchantshould pay you. Different merchants specifywhat constitutes an action worthy ofcompensation, and these can range from acustomer just seeing the ad to actuallypurchasing the product. How much you get paidwill also differ from merchant to merchant.

3. Read the contract.Information should be stated clearly in acontract. It is your responsibility to read thecontract, even if it is long, convoluted, or boring.If you are unclear about the merchant’s policies,either contact the merchant for clarification, orlook elsewhere for a more satisfactoryagreement. Numerous affiliate programs exist. If



you are interested in promoting a particular typeof product or service, a little research shouldhelp you find a reliable program that meets yourneeds. Here are two directories of affiliateprograms to get you started (we’ll be telling youabout many more later):

AssociatePrograms.comwww.associateprograms.com

●

2-Tier Affiliate Program Directorywww.2-tier.com

●

4. Monitor your site and links.You must check your site and links regularly tomake sure everything works properly.Merchants will contact you if changes should bemade. For example, if a merchant changes itslinking code, you should get an email specifyinghow this is done.

5. Monitor your statistics.The merchant should provide you with statistics.You need to monitor your statistics to make sureyou are being credited properly. Your statisticsreflect the success of your merchandising planand allow you to tweak your selling process toincrease your profit.

Who are affiliates?

Affiliates fall into three types. For clarity, wehave excluded powerhouse shopping propertiesand large corporate sites. We will call the threetypes power, mid-range, and non-productiveaffiliates.

1. Power affiliatesPower affiliates, who make a living wage, are a



http://www.associateprograms.com/

http://www.2-tier.com/


minority of those using affiliate marketingprograms. They usually have a network of sites,and spend several hours daily maintaining trafficto these sites. Power affiliates create a largerevenue stream for the merchants. Therefore,they enjoy several perks; for instance, poweraffiliates often have the influence to bargain withmerchants for more advantageous deals. Poweraffiliates often work from home. Many poweraffiliates are also merchants to vendors whowant to expand their revenue base. Poweraffiliates account for roughly 10 percent of allaffiliates. Of course, power is a relative term.For example, a highly influential site with a smallamount of traffic can command high ratesbecause of its market impact.

2. Mid-Range AffiliatesThe second type of affiliates makes somesupplemental income. These people oftenmaintain full-time "dirt world" occupations.These affiliates may have one popular site or anetwork of small sites, but they either controlsignificantly less traffic, or less targeted trafficthan the power affiliates, or have difficultyconverting page views to clicks, actions, orsales. These affiliates comprise about 10percent of all affiliates. Merchants like tocultivate these relationships because manymid-range affiliates can go on to be poweraffiliates.

3. Non-Productive AffiliatesSo what about the other 80 percent of affiliates?Unfortunately, they make little or no money.Many of these sign up for a program, intendingto use it, but never even put up paying links.Others put up the links, but don’t control enoughtraffic to support sales. Few just don’t have the



knack. The majority of non-profitable affiliationresults from ignorance or apathy. Affiliatemarketing is a competitive businessenvironment, and, as in any industry, many whoattempt the business will fail to perform.

Why should I be an affiliate?

The three main reasons to become involvedwith affiliate marketing are money, dreams, andfreedom.

1. MoneyYou already have a concept. Why not makeyour knowledge work for you? Strategicallyplaced paying links can bring in extra income.The amount you earn, of course, depends on anumber of factors but, if you have visitors, youcan harvest this traffic and convert it to revenue.

2. DreamsMoney and dreams are not mutually exclusive,and online affiliate marketing allows you to haveboth. Here’s how it works. If you always wantedto sell fine jewelry, books, cookware, or othertangible items, now you can. Unfortunately, youdon’t get to fondle the merchandise, but youalso don’t have to worry about buying, storing,or shipping it.

3. FreedomOnline affiliate marketing allows you thefreedom to choose your own schedule, and towork from home, from the road, in the middle ofthe park, or on the beach.



Summary

An online affiliate program is a contractualagreement you make with a merchant tobring in potential customers, generateleads, or sell a product.

1.

Merchants (not affiliates) handle theinventory and shipping.

2.

Your responsibilities as an affiliate includerepresenting a merchant, driving traffic,reading the contract, monitoring your siteand links, and monitoring your statistics.

3.

Affiliate marketers can be divided intothree types: power affiliates, mid-rangeaffiliates, and non-productive affiliates.

4.

The three main reasons to affiliate aremoney, dreams, and freedom.

5.



How Do I Choose aMerchant?

Vocabulary

Stand-Alone Affiliate Program(independent): An affiliate program run "inhouse" by a particular merchant. This merchanthandles the contracting, sale, record keeping,and payment process.

Solution Provider: A company, such asCommission Junction or BeFree, that assistsmerchants in the affiliate marketing process.Usually, the solution provider acts as anintermediary between the merchant and affiliate,and handles most business matters such asregulating contracts and cutting checks.

Stand-alone affiliate programs

A stand-alone, or independent, affiliate program,is one run "in house" by a particular merchant.This merchant handles the contracting, sale,record keeping, and the payment process. Youmay refer to the following affiliate programdirectories for details on independent programs:

2-Tier Affiliate Program Directorywww.2-tier.com

●

TOADS: The Online Affiliates DirectoryServicewww.affiliates-directory.com

●

Associate-itwww.associate-it.com

●

AssociatePrograms.comwww.associateprograms.com

●



http://www.affiliates-directory.com/

http://www.associate-it.com/

http://www.associateprograms.com/

CashPilewww.cashpile.com

●

Webmaster-Programswww.webmaster-programs.com

●

Reasons to use a stand-alone affiliateprogramThere are several good reasons to considerusing a stand-alone affiliate program. Here wewill focus on the most important considerations:

1. Access to unique items.Artists and craftspeople frequently cannotgenerate the volume of product to support alarge affiliate program. However, thesemerchants can benefit from highly targetedaffiliate sales made by a select group ofaffiliates. If you have a site dedicated to Shakercraftsmanship, for example, and want to sellhand-made Shaker-style chairs, then youshould consider finding a quality artisan with ahighly selective group of affiliates.

2. Access to non-traditional items.Some items, while mass-produced, do notalways appeal to the majority of Web surfers.However, if your highly targeted niche sitefocuses on a sub-culture, such as role playinggamers, then you should work with a merchantwho caters to this community.

3. Ability to work more closely with a merchant.Independent merchants, especially those withhighly selective affiliate programs, work withfewer affiliates, and are therefore often moreaccessible than the large solution providers.

5 - How Do I Choose a Merchant?


http://www.cashpile.com/

http://www.webmaster-programs.com/

Reasons to avoid independent merchants1. Time management.As an affiliate, your time is valuable. Workingwith a number of independent merchants takeslonger than working with many merchantscombined under a solution provider.

2. Reliability.Independent merchants vary in their experiencelevel and reliability. Be certain to read andunderstand the contract when signing on withan independent merchant. Independentmerchants work without the guidelines put forthby solution providers and, therefore, may haveholes and inconsistencies in their program eventhey don’t recognize.

3. Grievance and Mediation.When working with an independent merchant,be certain to understand the process forgrievance and mediation. Often, the merchantacts as his own mediator in these situations,which may be unfair to the affiliate.

Solution providers

If you don’t use a stand-alone program, thenyou will want to consider solution providers.Companies such as Commission Junction(http://www.cj.com), and Linkshare (http://www.linkshare.com)assist you in the affiliate marketing process.Usually, the solution provider acts asintermediary between the merchant and affiliate,and handles most business matters such asregulating contracts and cutting checks. If you’reinterested in this approach, you should alsorefer to the following companies:

Be Free, Inc.www.befree.com

●



http://www.cj.com/

http://www.linkshare.com/

http://www.befree.com/

Cyberbountywww.cyberbounty.com

●

Reasons to choose a solution provider1. VarietySolution providers offer access to a wide rangeof programs and an extensive array of products.

2. Time managementSolution providers consolidate the tracking andpayment for a number of merchants, makingtracking a one-stop experience for the affiliate.

3. ReliabilityReputable solution providers have theexperience and funding to reliably serve theiraffiliates.

4. Grievance and mediationSolution providers sometimes act as mediatorsbetween merchants and affiliates, providing amore impartial way to settle grievances.

Reasons to avoid solution providers1. All of your eggs are in one basket.In the unlikely event that your solution providerwould shut down, your entire affiliate marketingframework will crumble.

2. Merchants are less accessible.In a large solution provider organization, theindividual merchants and affiliates can remain ata distance.

Points to check when choosing amerchant

1. PoliciesCan you easily find the merchant’s sales and



http://www.cyberbounty.com/

leads policies? Are they explained clearly?

2. FAQ (Frequently Asked Questions)sectionDo they have an extensive FAQ section thatanticipates your questions and needs?

3. Contact informationIs a system in place to answer your questions?Can you contact a live person, and will thisindividual contact you in return? How soon canyou expect a response?

4. Affiliate handbookDoes the merchant provide an "AffiliateHandbook" by email or on their site? Thishandbook should explain the program, providetips, and indicate past or expected performance.

5. TestimonialsCheck for testimonials. Do the individualstestifying to the quality of the program actuallyuse the program?

6. Time framesIs the merchant clear about sales or leads timeframes? For example, you’ll want to know thedifference between the date of the actual saleand how long it takes for that sale to appear inan earnings report.

7. Merchant linksDoes the merchant link to the product or offeryou are selling, or simply to its main website? Ifa merchant is not aggressively trying to close asale or lead, affiliates will note this as traffictapping, where a merchant uses affiliatesprimarily as a source of traffic.

8. Sales supportDo you have latitude to pre-sell your products?



Does the merchant provide sales materials andpress releases? Can you customize content tomatch your site's tone? Some merchants evenbuild complete "mini-sites" for affiliates todeploy. Refer to the following for an example:

Loansharp Financial Centerloansharp.financialcircuit.com

9. Customer serviceCan customers make express purchases, or arethey forced to open an account each time theycome to your site? Is the purchasing processcustomer friendly?

Qualities of a good affiliate program

A good affiliate program, above all, will informthe prospective affiliate of:

1. The affiliate’s responsibilities.A clear description of what you, the affiliate,must do and what you are prohibited fromdoing. These are the program rules and willdictate what you’ll have to live with during yourrelationship with this merchant.

2. What designates an action worthy ofcompensation.As an affiliate, you must understand what musthappen in order for you to get a commission:whether you must deliver impressions, clicks,leads, or sales.

3. How the compensation will be rendered.As an affiliate, you must understand themerchant’s plan for compensation. Make surethat the merchant will pay you in money, andthat you can use the particular currency in yourcountry of residence. In fact, you should make



http://loansharp.financialcircuit.com/

sure they even pay affiliates in your country ofresidence. Sometimes, merchants try to usescrip that give you points you can use topurchase its own products yourself. Other times,the merchant might promise you entry into asweepstakes or a drawing. Also, check out howmuch you will be paid for each commissionableevent. Is the amount you will receive enoughcompensation for your time and traffic? Forinstance, you may receive $100 commission foreach life-sized alabaster pig you can sell, butthe market for these is probably limited.

4. When will you be paid?Merchants payment schedules vary. A fewmerchants pay every two weeks, many payevery month, and a few pay quarterly. Othersonly pay when you reach a minimum amount. Ifyou have not reached that amount, then thepayment is rolled over into the next pay period.Also, be aware that a significant lag time forprocessing will almost always delay yourpayment.

A good affiliate program sees the affiliationagreement as a serious contract betweenbusinesspeople, with the goal being mutualbenefit through the disbursement of a product.The guidelines below will help you understandthe more esoteric criteria that comprise anhonest affiliate program.

Merchant logos.As an affiliate, you should not be requiredto display a merchant’s logo on your site.Merchants who force affiliates to displaytheir logo often use that logo as brandingor free advertising. These merchantsincrease their sphere of influence at theaffiliate’s expense, and often use theselogos as a means of siphoning off traffic.

a.



Sign-up fees.As an affiliate, you should never have topay a fee to join an affiliate program. Youshould recognize that merchants whorequire you to pay any kind of start-upfees operate on the edge of the legaldefinition of pyramid schemes. Merchantsare well within their rights to request thatyou share in the cost of any extraneousmarketing materials, provided that thecharge does not exceed the productioncost of the materials. Also, merchants mayoffer a preferred status for a fee. Above allkeep in mind that you should never haveto pay to play.

b.

Confidentiality.As an affiliate, you must ensure yourcustomers’ confidentiality. Make certainthat the merchant has a privacy policy inplace that will sufficiently protect both youand your customers.

c.

5. Affiliate agreement.As an affiliate, you need to be able to access amerchant’s affiliate agreement easily. The fullagreement must be posted on the merchant’ssite, and you should have access to it, for free,and without having to give out personalinformation. Be suspicious of sites that requireall of your vital statistics before they will let yousee an agreement. A good merchant shouldhave enough confidence in its agreement todisplay it publicly and proudly. Parts of a goodcontract include:

How the merchant will approach contractchanges.Even a very good merchant may have to

a.



make changes to its contract, but it shouldhave a statement ensuring that it will dothis "in good faith" with the affiliate. Amerchant should not make changes withthe intention of exploiting its affiliates.Moreover, a good merchant should informthe affiliate of any upcoming changes,both on the site and by email.

Legality.You should be assured that the merchantoperates within the law, is permitted to sellits product, and does not violate thepyramid scheme laws.

b.

Contact information.A good merchant will provide multiple,reliable methods by which it can bereached. These include email, postaladdress, and telephone numbers, andthey should be displayed on themerchant’s website.

c.

Contact permission.A good merchant will ask your permissionto contact you via email with promotionalmessages, newsletters, and the like, onan opt-in basis. The merchant shouldprovide you with an opportunity to decidenot to receive these messages.

d.

6. Grievance policyAs an affiliate, you need to be clear on amerchant’s grievance policy. The merchantmust clearly state how grievances and disputesare to be handled. This disclosure includes:

Who is tracking your results? Manymerchants use third-party companies totrack performance. You, the affiliate, mustbe clear on this issue.

a.



Who handles disputes? Merchants mustinform affiliates how to register acomplaint, and how this dispute will bearbitrated.

b.

7. TerminationAs an affiliate, you need to understand theprogram rules, and recognize that violation ofthese rules could lead to termination of thecontract. A good merchant will spell out all thereasons that you can be terminated for cause.Usually, these reasons have to do with illegalactivity or with cheating to improve yourstatistics. If you are terminated for cause, agood merchant should inform you of the reasonfor termination. However, this merchant neednot pay you anything. If you are in a two-tierprogram, and you are terminated for cause, theindividuals in your second tier should remain inthe program, and should maintain all revenuesearned. However, you will no longer receivecompensation for their activities. If the merchantmust terminate you without cause, then themerchant must pay you any compensationowed.

8. Tracking statisticsA good contract will provide you, the affiliate,with information regarding how your account willbe tracked, as well as how you can access yourstatistics. This contract should also explain howfrequently the statistics will be updated.

9. ClarityA good contract should be written clearly andwith limited legalese, in order to facilitatecommunication between you and the merchant.Please refer to the following sites for moreinformation about affiliate agreements.



AffiliateAdvisor.comwww.affiliateadvisor.com

●

AffiliateHelp.comwww.affiliatehelp.com

●

Affiliate Tipswww.affiliatetips.com

●

Affiliate Unionwww.affiliateunion.com

●

Affiliate Wirewww.affiliatewire.com

●

ReveNewswww.revenews.com

●

What do I do if a merchant breachesmy contract?

You have been waiting patiently by yourmailbox, and your check has not come. Youhave carefully reviewed your affiliate contract,and are certain that your merchant hasbreached the contract. This fact can be hard toestablish, as many contracts are sufficientlyvague to allow a merchant much latitude and anaffiliate little information.

Therefore, you must determine if the contractremains valid. If a merchant has declaredbankruptcy or otherwise gone out of business,your contract may be rendered obsolete. Thesecircumstances notwithstanding, there are stillcases where affiliates are owed money, and themerchant is withholding it.

Here are some suggestions you can try if youfind yourself in this situation.

1. Contact the merchant.Email the merchant, advise him of the problem,and request an immediate answer. Perhaps you



http://www.affiliateadvisor.com/


http://www.affiliatetips.com/

http://www.affiliateunion.com/

http://www.affiliatewire.com/


have a simple issue like an incorrect address onyour account. Such matters are easily resolvedwith a minimum of heartache.

2. Repeat contact.If you don’t receive an immediate answer, thenwrite back, demanding a response in areasonable time frame.

3. Plead your case.If you receive a response from the merchantthat you believe to be incorrect, then state yourcase, in writing, to the merchant.

4. Certified mail.If you still receive no satisfaction, send themerchant’s CEO a certified letter explainingyour situation. State that you need a satisfactorysolution, or you will involve the Better BusinessBureau (www.bbb.org), and the State AttorneyGeneral of the merchant company’s home state(www.naag.org).

5. File a formal complaint.File a complaint with the Better BusinessBureau and the State Attorney General’s office.Both organizations have online complaintsubmission forms.

Perhaps one complaint won’t raise much of astir. However, if affiliates make such reportingstandard practice, then the attorney generalwould receive several complaints on a companythat behaves unlawfully. Moreover, if amerchant knew that affiliates would report unfairpractices to the BBB and the attorney general,that merchant might think twice before actingreprehensibly in the first place.



http://www.bbb.org/

http://www.naag.org/

What is the Affiliate Union?

The Affiliate Union (www.affiliateunion.com) is anorganization of affiliates and merchantsdedicated to promoting communication anddisclosure in the affiliate industry. Themovement arose out of a need for standards ina burgeoning industry. Union members havedrafted standards and criteria for certification ofmerchants. As any perceived gold rush, theopening of the online affiliate market attractedboth legitimate businesspeople and its share ofcharlatans and snake oil salesmen. Predictably,people, merchants, affiliates, and customersbegan to get burned by unclear, poorly planned,or outright unscrupulous transactions.

Fortunately, the Internet is an informationmedium and this allows legitimate businesspeople to compare notes quickly. Merchantsand affiliates work together to create a set ofstandards based on disclosure. Keep in mindthat disclosure is based on honesty, not onquality. The AU plans to examine and certifymerchant programs that honestly outline to theiraffiliates the responsibilities of both parties, andtell affiliates what, when, and how to expectcompensation. At this point, the AU does notpresume to evaluate what a "good" or "fair"program is, and the affiliate is still responsiblefor reading and understanding a contract beforesigning it.

The AU is a mutually beneficial, cooperativeeffort between merchants and affiliatesdesigned to facilitate communication anddisclosure. Moreover, the AU will decrease theamount of fraud and abuse, lessen thevictimization of affiliates, and lend dignity to theindustry.





Checklist for choosing a merchant

Sales and leads policy is explained clearly

Program has an extensiveFrequently-Asked-Questions section

Access to live affiliate support personnel

Affiliate handbook

Valid testimonials

Direct links to the product or offer you areselling

Merchant provides sales materials

Merchant provides opportunities for affiliatesto customize their sites

Clearly defines affiliate responsibility

Clearly defines commissionable acts

Clearly defines how payment will berendered

Clearly defines when payment will berendered

Merchant does not require you to display itslogo

No fees required to join a merchant’sprogram

Security and privacy policy

Grievance policy

Guidelines governing termination for cause



Summary

Stand-alone (independent) merchants andsolution provider programs both haveadvantages and disadvantages for theaffiliate.

1.

When choosing a merchant, take the timeto educate yourself on the program.

2.

Ensure that your merchant discloses allcontract terms.

3.

Use our checklist to evaluate a programbefore joining.

4.



Reader Feedback

Psst. Want to share a secret? Or have a beef? Ifyou have a resource that you believe belongs inour book, or if you think we’ve made a mistake,we sure would like to hear from you.

To get in touch with us, simply send email to:

[email protected]●


mailto:[email protected]

About the Authors

Wayne Porter is the CEO and chief editor ofAffiliateHelp.com, an affiliate marketing andconsulting firm. A successful affiliate marketerhimself, Wayne has over five years of onlinemarketing experience. He is also a foundingmember of the Affiliate Union, where hecurrently serves on the Board of Directors.Wayne dedicates himself to the development ofthe online affiliate marketing industry.

Kim Porter writes for AffiliateHelp.com, and isthe originator of its "beginner’s series." Kim hasover 10 years of online experience. She earnedher BA in English from Oberlin College, and herMA in Education from Marshall University. Shehas taught English and writing on theelementary, secondary, and college levels.


Other Intellectua.comPublications

.COMstruction: The BasicsPacked with gritty, real world advice, withInternet small business and publishing industryveteran, Eldon Sarte, giving the neophyte solonetpreneur a mentor's insight into getting a prowebsite self-built quickly and intelligently,.COMstruction: The Basics focuses entirelywithin the scope of the only thing that matters inits world: business.

Werner's Links to Free Publicityon the InternetIntellectua.com CEO (and founder of a two-timeInc. 500 company) Michael Werner's personalcollection of great links to free publicityresources on the Internet that he uses himself.

The Dirtsmart NetpreneurA free ezine, featuring bottom line brilliantresources for do-it-yourself netpreneurs andhome-based business webmasters, each freeissue offers a number of "Dirtsmart Finds" —including downloadable software, CGI scripts,free Net services, sensible affiliate programs,etc. — and more for the serious onlinebusinessperson.


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This is an abridged version ofAffiliate Marketing 101

This is only a small portion of Wayne and KimPorter's Affiliate Marketing 101: A Start-Up Guide

for the Serious Netpreneur. If you like what you seehere, we hope you'll pass this sample along to yourfriends and co-workers. To find out more or to order

the entire book,


http://www.intellectua.com/home/10295


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