“Down Side” to Affiliate Programs
There are couple of “down side” points to make about affiliate marketing. Payments for credited referral sales (earned commissions) are usually not paid right away. There are good reasons for this practice by those running affiliate programs:
When a sale is made at a website, the buyer is usually given a money-back guarantee period of time, usually 30 days, to use and evaluate the product to make sure it meets the users needs. If the buyer requests a refund of the purchase, then the affiliate also loses their commission for the sale. newswibe Payments to the affiliate are usually delayed until after the refund period has expired so the product owner is not “left holding the bag” for already paying a commission on a sale that has now been refunded.
Commissions are usually paid on a regular payment cycle, normally monthly. What you earn in one payment cycle is usually not paid until the next payment cycle. This way all commission payments can be handled at one time and is not a full time job paying daily or even weekly.
The main “down side” to affiliate marketing is that most, if not all, affiliate programs set a minimum dollar amount you must reach in commissions before they will cut you a payment. This usually ranges from $20 – $50 or more in some cases. Breaking this down in simple, easy to understand terms is best served by an example.
Say for example you sign up for an affiliate program that has a $30 minimum payout level and the product sells for $49 with a 50% commission. You do all of your work and generate a sale from your affiliate link. OK, you have made a $24.50 commission (it will actually be a little less as you are paid on the net sale, after all processing expenses are paid) … You get that paid to you on the next payment cycle, right? Not exactly … You see, your commission does not reach the $30 minimum payout the program sets before they will incur the expense of cutting you a payment.
So what now? Well, you have to wait until you make another sale to get you over the minimum before you get your commission on the first sale. This could actually carry over for months before you actually get paid. In some case, you may never reach the minimum if you do not make more than one sale. In that case, your commission remains in “limbo” forever.
And to make matters worse, this minimum payout level applies to each individual product for which you are an affiliate. Different products are owned by different people and the earned commissions for all products do NOT accumulate to get you over any minimum payout level.
Any minimum payout level problem is solved when using affiliate sites instead of individual affiliate programs (this is the huge advantage referenced earlier). Each sale you make under the umbrella of the affiliate site is accumulated into one qualifying pool so you only have to make cumulative commissions to meet the minimum payout level to get paid.
To qualify for your commissions, you could make sales of 2 different products and the earned commissions from both are combined for you to reach the minimum payout level. Yes, this is huge … Instead of having 10 different sales individually setting in 10 different affiliate programs, none of which meet the minimum for you to get paid, now you have those 10 sales commissions added together to get you over the minimum payout level and now you get paid for all 10. I hope you see the huge advantage the umbrella type of affiliate programs offer.
How To Get Your Affiliate Link Online
The beauty of affiliate marketing is that unlike a salesman in the real world, you are not trying to convince anyone of anything. You just register a domain (which is recommended but not required) and put up a product review minisite, a one page website that describes and promotes all the features and benefits of the product being promoted.
Although a product review site is recommended for the best results, it does require that you do have some web space on the Internet. Hosting accounts are available for just a few dollars a month so this should be within anyone’s reach that has a true desire to be an affiliate. Many review sites can be placed on one hosting account. In fact you could well have thousands of review sites on one hosting account.
If you do not want to create product review sites, there are alternatives. Some affiliate sites offer you pre-made products and websites and are available for free for your use if you join their affiliate program.
Promoting Your Product
The seller in essence does all the conversion work; you just have to send targeted traffic to the sales page.