
by SHAWN COLLINS
Appearing on refer-it.com
Affiliate programs are an excellent way to generate revenue
from any Web site. Simply join a program, add their banners or
text links to your site, and the checks start filling up the
mailbox. Well actually, it's a little more complicated than
throwing up a banner.
Affiliate programs come in a lot of different flavors� some
will pay a percentage of the sale, others pay a flat fee per
transaction, and still others will pay you for every click of the
mouse that brings somebody from your site to theirs. An affiliate
program by many other names is still an affiliate program. You
may have heard about partner, revenue sharing, affinity, bounty,
and associate programs. All of these are affiliate programs.
In essence, affiliate programs are partnerships between
merchants and Web masters. Webster's Dictionary defines affiliate
as "to take in as in a member or branch." This member or branch
of the merchant company benefits by earning income through the
sale of products or services, and the merchant benefits by having
the extended reach of their products in the marketplace.
The affiliate programs operate by the "Law of Reciprocity,"
where people are paid for their performance, like the familiar
"one good turn deserves another." The merchant pitches in their
good turn by providing a product or service, accompanied by an
infrastructure for tracking sales and issuing payments to the
affiliates. In turn, it is the responsibility of the affiliate to
make a concerted effort to sell the product or service of the
merchant. This cannot be accomplished merely by posting a banner
or text link to a personal homepage.
In order for the affiliate program to become a "win-win" tool
for both the merchant and affiliate, the affiliate must have a
Web site with more than a jumble of affiliate links, and the Web
site must generate some traffic. If you hope to get rich quick,
there is no need to read on.
The "80/20 Principle" is the popular expression of a rule of
economics that describes the typical imbalance that exists
between efforts and rewards. When applied to affiliate programs,
the "80/20 Principle," also known as the "Pareto Principle" after
Italian economist Vilfredo Pareto, dictates that 80% of affiliate
sales are generated by 20% of the affiliates.
But industry guru and founder of Refer-it.com, James Marciano, sees
an even bigger imbalance. "I would say that affiliate space is
governed by a tiny minority of people that have optimized their
Web sites for maximum salability. Rather than the '80/20
Principle,' it's more like the '98/2 Principle,'" according to
Marciano.
So how do you become a part of that elite 2%? If you build it
and promote it, they will buy. It's just a matter of applying
yourself and taking care to create a quality site that attracts
traffic.
Content is King
Why did you create your Web site? If you launched a site merely
because you have dollar signs in your eyes, your intentions are
going to be evident to everybody that accidentally lands at your
site, and then quickly leaves. Find a niche and work hard to be
the best in your space. What interests you... the New York
Yankees... kids... drive-in movies? Create a site that you care
about and it will be a lot easier turning your passion into
profit.
Below are some components you should try to implement into
your site in order to generate interest and traffic:

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Feature niche specific content. iSyndicate and Excite provide a wide
variety of choices for syndicated content that you can add to
your site for free. |

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Many Web hosts supply discussion forums that
you can customize and add to your site. If your host does not
provide these services, BeSeen and My Forum provide free forums for
your site. |

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Write a FAQ (Frequently Asked Questions)
page that answers questions about the focus of your Web
site. |

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Opinion polls are great for generating data
to publish at a later date, and also to add some
interactivity to your site. FreePolls.com and Pollit are two great, easy to use
sites that will add a free poll to your site. |

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Publish an e-mail newsletter on a regular
schedule that informs subscribers about updates to your site,
new about the topic of your site and pretty much anything you
care to write about from month to month. ListBot offers both a free and
paid mailing list that includes stats and an easy to use
interface. |

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Word of mouth is a very effective method to
market your site. If you're not utilizing this tactic yet,
you should be. Every page on your site should have a link
where visitors can click to tell a friend about your great
site. Check out eBoz's
Recommend & Win or Recommend-It to add this
tool to your site. |

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Testimonials are very persuasive and
effective. What do your visitors think of your site? If
they're not telling you, just ask them. Add a short survey to
you site and solicit comments. Be sure to get their
permission and publish the flattering remarks on your
site. |

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If you have a flair for writing, or even if
you don't, do some research and author articles and reviews
that pertain to the focus of your site.
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Create a Traffic Jam
Okay, you've created a great site, but nobody is coming to visit.
Don't worry, they will come, but only if you tell them where to
find you. Follow the guidelines below and you're sure to develop
a steady stream of traffic in no time. And where there's traffic,
there's an affiliate revenue stream.

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Know the Search Engines. All search engines
are not created equal, so you are going to have to know what
to do in order to achieve optimal positioning. Go to Search Engine Watch
for vital information on optimizing your Web site and
achieving search engine success. |

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Mailing lists and Newsgroups are the ideal
spots to target your niche audience. Search the Liszt mailing list directory and
subscribe to mailing lists that reach the people that you
want to reach. The same goes for Deja.com, where you can subscribe
to numerous newsgroups on specific topics. Be sure to spend
some time assimilating into the culture of the mailing lists
and newsgroups before posting any sort of solicitations. Even
then, post it one time and one time only — if they are
interested they will respond to it. |

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How's your John Hancock? An e-mail signature
is a very useful tool for providing your contact information
and URL to the people that you correspond with for your Web
site. E-mail signatures usually include your name, company or
Web site name, e-mail address, URL, and any other relevant
information. You can also add a signature to any posts on
Deja.com. |

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Back to the Search Engines. You researched
the engines, created Meta tags, and submitted your site. But
where is it? Of course, you could manually go through the
main search engines and conduct searches for each of your
keywords. Or you could go the easy and time-effective route
and sign up for the free Did-it Detective,
which will check the popular search engines and directories
to determine if and where your site has been indexed. This
research is then e-mailed to you monthly. |

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Where do you get most of your traffic? Which
of your pages are most/least often visited? When do your
visitors tend to visit the site? Who is visiting? Do you have
broken links? There are a lot of vital pieces of information
that are out there about your site, and if you are not
receiving this information, you are missing out on some key
information that should dictate your site development and
marketing methods. Visit HitBox for a fantastic (and
free) Web site traffic counter and analysis tool.
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Affiliate programs are a great way to generate revenue from
your Web site. You just have to be willing to work hard in order
to become part of the 2% of affiliates that reap the benefits of
98% of the revenues.
Shawn Collins is currently the
Affiliate Manager for ClubMom
Inc., the Founder of the United States Affiliate Manager
Coalition, and the Co-founder of affiliate metrix. Shawn is a
former employee of Refer-it.com and frequent columnist
for Click Z. Shawn's first
book, "Successful Affiliate Marketing for Merchants," was
published in April 2001.