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Affiliate programs explained
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Affiliate Programs Explained
What are affiliate programs?
The parties involved
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Affiliate Networks
Commission structures
Linking methods
Traffic directing
Merchant Traffic Recognition
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Let's take a look at each one of the parties we wrote about and see how they benefit from this arrangement.

1.   The customer
Although you might automatically think that the customer is the neglected part of the affiliation programs, the truth is exactly the opposite. The customer does benefit from them. Affiliate programs make it possible for a surfer that is reading about a subject on the Internet to reach the product he is interested in the quickest and easiest way. This way he also knows that he is getting the product that is recommended by some one that he trusts and that is outside of the company that is selling. In this way the customer is saving himself the time it takes to do a market survey because the affiliate program has already done it for him.

2.  The merchant web site
A merchant web site is just like a store wanting to sell their merchandise. This product can be anything from a car to a book and anything in between that you can think of. The point is that they want to sell.

Like in any case of selling the first thing you need to do is to advertise your product. This is where the affiliate programs come to help the merchant web sites. They provide the best advertisement for the product and bring more and more potential customers to the site. This is also the best way to advertise since a customer that reads about a product at an affiliate program site regards it more as a recommendation than as a advertisement and so he will be more trusting and willing to buy than someone who saw a usual add on the same product. In simple words – the affiliate program helps the merchant to make more money.

3.  The Webmaster
This is the party that makes the most out of affiliate programs. The Webmaster actually gets paid for recommending. It is possible to make a living (a very high standard one) as the advertiser of various products just from receiving the commission that the merchant web site pays according to the agreement. No complications here – you simply make money by connecting between the people and the product they want to buy.

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