Getting Rich from Affiliate Programs

Some times it pays to work with others. In this article we will discuss how to make money with affiliate programs.

Affiliate programs (also called Referral Programs or Partnership Programs) are essentially commission-based sales schemes. You recommend a site to your users and pick up a percentage of any sales those users generate. You benefit from the commission and the site benefits from sales it wouldn’t otherwise have made. If you’ve ever gone to a website and seen links to Amazon, those were affiliate links.

You can run an affiliate program from a site you’ve already set up, or create a site specially to promote a product or service. As long as it brings in more cash than you spend on building it and buying traffic, you’re laughing.

Affiliate ads work two ways: you can join them to make money, or you can run one to attract users.

Joining An Affiliate Program

As with any marketing venture, you need to be careful in the selection of an affiliate program. The benefit of an affiliate program is that it gives you another way to make money from your users. Instead of selling them a product yourself, you send them to a partner and take a cut.

On the downside though, your affiliate ads will take the place of a different ad that you could have put in that same spot. You have to make sure that each advertising position on your site is bringing in the maximum revenue possible. If you’re not getting the most from your site, you’re tossing money away.

The key to success is to choose the right program, right from the beginning.

Now, a lot of commercial sites run affiliate programs. That’s because they know that they only have to pay a commission if a sale is actually made; it’s a proven way to generate revenue without risk. What that means for you is that when it comes to choosing an affiliate program, you’re going to have a huge range to choose from. What it all boils down to though is product and price.

While it might be tempting to go for the program that pays the highest commissions, the program won’t pay you a penny if your users won’t go there or won’t buy once they get there. You have to be certain that the service you’re promoting is of genuine interest to the kind of users you buy, whether you’re buying them from search engines or anywhere else.

Sure, you can work backwards: You find a high-paying affiliate program and create a small site to send users to it, but do you know where to buy users for a program like that? You’re going to have to research the field, check out the most popular sites, and negotiate banner campaigns and link exchanges.

That’s fine if you want to invest the time and the effort. But it’s much easier to find an affiliate program operating in a field you’re familiar with, and use that program to earn extra cash.

For example, suppose you had set up a dating site. You might make bit of money selling subscriptions, but you might make even more by joining Match.com’s affiliate program and selling them your users. Unless you’re planning to be the Internet’s biggest dating site, you’re not going to be able to compete directly and beat them, but you can join them—and earn money.

Or rather than sell your users directly to a ‘competitor’, you can look for services that complement your own. Visitors to your dating site, for example, might be interested in buying flowers, books on relationships or tickets on singles cruises. Instead of selling just one product—membership subscriptions—you’d be selling a whole range of different goods to the same people, and increasing the sources of your income.

Here are some tips to selecting an affiliate program that is lucrative and right for you:

• Don’t accept less than 25% commission. You can find affiliate programs with great payment structures and high percentages of the purchase price in just about every field.
• Look for comprehensive statistics pages that list the number of click-throughs, sales and earnings so you can see how you’re doing. The information should be broken down by month.
• Look for programs that offer a wide variety of promotional tools to put on your Web page, including text links, banners and graphics.
• Find out how often you will be paid and make sure that the payment schedule meets your expectations. Some programs pay monthly, others quarterly; which is best for you?
  
• Look for examples of marketing methods that successful affiliates are using to get the best results.
• Make sure that top level support is given. If they can’t answer your questions promptly and intelligently, you don’t want to work with them.
  

Affiliate programs offer a viable solution to competing against larger competitors and still make money. As the saying goes, if you can’t beat them, joint them!

Blogs

In this article we will discuss a relatively new internet tool – the Blog.

Blog (also known as Weblog) is traditionally a webpage where pre-surfer or a blogger “logs” all pages he/she finds interesting. In other words, it is a Web page that contains brief, chronologically arranged items of information. Typically updated daily, blogs often reflect the personality of the author.

Weblogs provide a series of annotated links to items such as news stories, and often include personal rants. They are maintained by one person, most commonly someone who is involved in Web design or some other tech-related field.

A blog is often a mixture of what is happening on a particular website and what is happening on the Web, a kind of hybrid diary/guide site, although there are as many unique types of blogs as there are people. Blogs can be used to introduce products to potential customers.

People maintained blogs long before the term was coined, but the trend gained momentum with the introduction of automated published systems, most notably Blogger at blogger.com. Thousands of people use services such as Blogger to simplify and accelerate the publishing process.

Blog as a marketing tool

Blogs offer huge marketing potential. They are highly strategic tools that can strengthen relationships, share knowledge, increase collaboration, and improve branding. Besides, blogs can represent the real voice of the website.

A weblog can take the form of a diary, a news service (or summaries of and links to current news items on a topic), a collection of links to other Web sites, a series of book reviews or products, reports of activity on a project, the journal of an expedition, and much more. Businesses can use this tool to effectively advertise their products or services.

One of the most interesting ways to use a weblog is by allowing it to function as a discussion forum for customers of your products or services. In this case, the webmaster can give posting rights to other people – visitors and customers, and their posts may or may not be reviewed before they are published to the Web page. Customers, in such a way can post favorable comments about the websites offerings. Some weblogs are set up in such a way that only the owner or the owner and certain other people have posting rights, but anyone else can add comments to the posts.

Weblogs when used with newsletters present immense marketing opportunities:

• Articles within newsletters can be linked to a blog, extending life and creating a massive conversation.
• You can offer a bidirectional forum to customers to get true, personal opinions on your products and services.
• Company experts can start a blog and become industry experts, helping your company edge out competition and, through this interactive forum, draw customers into another exchange of information and thoughts.
• The beauty of this interplay is you can layer your blog with editorial controls.
  

How to create a Weblog?

The majority of weblogs are now created using software or services designed specifically for this purpose. Some of the software is free - and some of the organizations that provide weblog software will also provide free server space to house a weblog so that it is publicly accessible on the Internet. There are also commercial versions of some of the free software; these commercial versions often provide more features. Some weblog software is available only as commercial software. Alternatively, bloggers can create and maintain their weblog using free software or a free weblog service, but use FTP (File Transfer Protocol) to load the resulting weblog to their own Website.

There are many blogging softwares available easily on the Internet. One of the most popular weblogger is “Blogger” which can be downloaded for free at http://www.blogger.com. Most webloggers simplify the process of Website creation. However, they do require basic knowledge of FTP, Website structures and a few technical terms. Besides, creating an advanced weblog requires knowledge of HTML.

So get out there and start your own Blog…it’s free, easy and can work seamlessly with the rest of your website or newsletter.

Banners

In this article we will discuss the ins and outs of banner ads. Are they worth your advertising dollars or are they a thing of the past?

When the Web first started, banners were all the rage. Today, they’re pretty much passé. They’re no longer a novelty and unless they’re super-clever, users pretty much ignore them. Conversion rates have dropped through the floor and many advertisers have found other ways to push their products.

And yet, every website still contains a whopping great banner ad splashed along the top or running up the side. In part, that’s because they’ve become more sophisticated with better targeting and improved graphics. But in practice, banner ads tend to be used for one of two reasons: as a method of gaining/ giving users through an affiliate program; or as a way of generating revenue—or traffic—through paid advertising.

Both these methods work to some extent, but the key is always to make sure the economics make sense. We’ll look closely at the math in this chapter, but before we go on to talk about the math of banner ads—and how to tell whether your banner campaign is worthwhile—let’s just take a look at the terms involved. You’re going to see these words whenever you join an affiliate program or take part in any other kind of online marketing scheme. You should definitely be familiar with them.

Banner Glossary

• Banner Ad — A graphic ad linked to an advertiser’s website. These usually run across the top of the page but can also run up the page (“skyscrapers”). Banners are usually limited by size.
• Banner Views —The number of times a banner is seen by users. This is usually the same as "page views," but counts the number of times the banner is actually downloaded rather than the number of times the page is downloaded. Some users click away before the banner finishes loading.
• Clicks/ Click Throughs — Banners are operated by clicking the cursor over them. Not too surprisingly these responses are called “clicks” or “click throughs.”
• Click Through Rate (CTR) — The percentage of users who see the banner and click on it.
• Conversion Rate —The percentage of people who visit your site and actually give you money. The higher the better!
• Cookies — Small files placed on a user’s computer. They’re used for all sorts of reasons and by all sorts of sites. Banner ads use them to make sure the user hasn’t seen the banner recently, which banner brought them to the advertiser’s site, and even which adverts they’ve seen recently.
• CPM — "Cost Per Mille." The amount you pay for every thousand times a banner is shown—the usual way of charging for banners.
• Hits — The number of times a server receives a request for a Web page or an image. Not a great way to measure interest. One page can have lots of images and get lots of hits, even if it’s only seen once. Often, people will say "hits" when they really mean "page views" or "impressions."
• Page Impressions or Page Views —The number of times a Web page has been requested by the server. Much more accurate than hits: each view is a potential customer looking at a page of your site. But not necessarily a different customer...
• Unique Users — The people who download a Web page, counted by IP address. You want to bring lots of users to your site so that you can create a broad customer base. The same user clicking on a banner a dozen times could cost you money without increasing your sales. Most reputable sites will check the IP address of the person clicking on a link and only count it once in a 24-hour period. If a site doesn’t do this, don’t advertise with them.
  

Banner Economics

Business online, like business offline, always boils down to math: the difference between cost and revenue. If your banner campaign is costing more than it’s earning, you won’t be in business for very long. To figure out how your campaign is doing, you’re going to need to know your Cost Per Mille, your Click Through Rate and your Conversion Rate. These are your basic tools. If you don’t know them, find out!

Let’s say your CPM is $20, your CTR is 1%, and your Conversion Rate is 4%. (So you’re paying $20 every 1,000 times your banner is shown, it brings you 10 new users, and you make one sale for every 25 users the ad brings). The question you need to ask yourself is how much are you wasting on the 24 users who don’t buy.

Cost per visitor = $20 / 10 = $2 So each visitor costs you $2, but you need 25 visitors to make one sale, so...

Cost per sale = $2 * 25 = $50 ...if your product is worth less than $50, you’re making a loss.

That’s pretty simple, and as you can see, there’s not a lot of room to maneuver here. Margins are tight on banner advertising and that applies to both the site selling the advertising space and the webmaster buying it.

Of course, hard cash isn’t the only way to measure the success of a banner ad, and one reason they’re still popular is that they’re a pretty effective branding tool. After all, advertisers spend millions on billboards without expecting motorists to drive straight through them and make a purchase! On the Web, those advertisers can even be reasonably sure that the people who see their ads will be interested in them. But branding costs money—lots of it—with no guarantee of results. It’s usually best left to the big boys.

The banner ads on my sites usually send users to my affiliate partners, and the banner ads I place on other people’s sites usually come from my affiliate programs. They don’t cost me anything and as long I’m making the sales to pay my affiliate partners, everybody’s happy.

If you do decide to purchase banner advertisements though, and if you have a very specific market in mind, make sure they are strategically placed—on sites where the traffic will most definitely be interested in your product or service. Find a site that suits exactly your specific product and you’re going to be appealing directly to your target market.

That’s it for this week. As you can see, banner ads are not the guaranteed money making tools that they once were but they can still be used effectively if targeted properly. Is banner advertising for you? Only you can determine that.

Advertising in Newsletters

In this article we will discuss advertising in other companies’ newsletters and how it can be as equally beneficial.

By advertising in other newsletters, you can reach an audience which is highly targeted and cost effective. Moreover, you can never be accused of spamming as all the recipients have subscribed to the newsletter. There are so many newsletters out there covering so many different topics that it's easy to find highly targeted ones to advertise in. So if you've matched the newsletter to the product you're selling, you've reached your target audience to a tee.

Almost all newsletters are archived, thousands of people read these archives, and your ad will be seen by these people at no extra cost. This can bring in exposure and extra sales on a long term basis. Besides, newsletter publishers may have already developed a trust between themselves and their readers. Just by placing your ad in the newsletter, it's more likely to be read because it appears in a publication they like and trust.

Newsletter advertising is not only effective, it's cheap as well. A 5 line ad in a newsletter that goes to 3000 people will cost you between $5 and $25 per issue. With so little risk involved, this is definitely worth it.

Buying Ads in Other Newsletters

Just as you can sell advertising, you can also buy advertising in newsletters. You can use those ads to promote your business or to invite people who read newsletters to read your own.

Again, you have to pick your partners carefully. There’s no point just picking a newsletter with the cheapest rates; you want to make sure you choose an outlet that appeals to the same buyers as you. You also need to think about where your ad is going to be placed. In general, the higher the position the better. And the more the merrier too. Don’t expect a huge response from a single ad. It’s always best to think of advertising in terms of a campaign. You’ll get a better deal—and better results—if you reserve an advertising slot for four or five issues than if you buy them one at a time.

How to Attract Affiliates

In this article we will discuss how to attract affiliates to you program.

One of the biggest fears new Affiliate managers have is in finding new affiliates. This fear is a stumbling block that stops many site owners from getting started with affiliate marketing. Interestingly, with a proper marketing strategy, getting affiliates may not be very difficult.

Given below are some tips that may help in attracting new affiliates.

• Find complimentary sites - "Complementary" sites are a sites that sell products or services that compliment your offerings. If you sell "gardening tools", a site that sells books on "gardening tips" would be a perfect affiliate. If you sell software, try looking for sites that sell computers or computer parts. Finding sites that already attract your target market, and can benefit from recommending your product or service to their visitors, is the goal.
• Find content sites – There are many sites that do not sell any kind of product or service but are mainly content-oriented sites. Such sites promote an idea, concept, study or belief. Content sites that are used as a resource for your target market are ideal affiliates.
• Finally, there are several sites on the Internet dedicated to listing affiliate Programs. Get your program listed in these directories.
  

Classifying Affiliates for better management

The hardest part of administrating an Affiliate Program is deciding what your affiliates need to help make the sale. But, by carefully categorizing your affiliates, you can easily determine what their needs are and how to accurately meet them. The plan given below helps in categorizing affiliates in order to manage your affiliate program better.

The first step is to pick at least three types of affiliates. Take a look at your affiliates and try to determine one outstanding characteristic that can easily be compared across the board and choose at least three types of the characteristic. Here are some examples:

• Level of Sales - You may find that your affiliates are so completely different that it's hard to find something to classify them by. Try classifying them by the level of sales they've reached with you. You'll most likely find that you have a few forerunners that lead the pack with a number of sales, quite a few affiliates that have sporadically made a sale or two and some that have yet to make a sale. This will help you classify them based on sales.
• Products - If you sell a wide variety of products for specific interests/needs you may be able to classify your affiliates by product. For instance, a financial site could classify types like Personal Finance, Small Business Finance, and Corporate Finance.
• Industry - If you market commodities like office supplies, health and beauty products, house-wares and so on, you may find that your affiliates come from a wide variety of industries. You can most likely classify your affiliates according to their industry.
  

The Second Step is to determine the needs of each type. Each of your affiliate types will have different needs; some of their needs will overlap, but you should find a distinct difference in many of their needs. If you find that all of them have the same needs, go back to step one and re-think your types.

Here are some basic things to look for:

• Linking Methods - Different types of affiliates will need different linking methods. Let's use the example above where we had different groups based on sales. Your low sales group may be satisfied with a banner or two to place on their site. Your medium sales type may be interested in an article or two for added content on their site. Your high sales group will probably pass up banners for articles, guestbooks, email ads and signature files.
• Capturing visitors is what you want. In order to do so -- you have to know what they want. Visit your affiliates' sites to see what visitors are looking at and looking for. Ask yourself, "How does my product relate to what I am seeing?"
• Different types of affiliates may expect different commissions. You'll have some Affiliates that have joined your program "on the side" and others that plan on earning a substantial income from the program. Determine what effort they are putting into advertising, how much other programs in your industry are paying, and the amount of time they devote to your program.
  

The Third Step involves the process of creating and compiling linking methods for each group of affiliates. Based on the needs you identified in Step two, create and compile linking methods for each type. Here are a few linking methods to think about.

• Banners - Though they aren't as effective as other linking methods, banners are still widely used and expected. Make banners in a variety of sizes to fit tops of pages, bottoms, toolbars, sidebars and other miscellaneous areas.
• Articles - These are great for affiliates that need content for their websites and newsletters. Be sure that your articles are articles and not ads.
• Email Ads - Your active affiliates may be interested in placing ads in e-zines or their own newsletters. Try writing a few ads in different lengths.
• Signature Files - Dedicated affiliates may even add your tag to their signature line. Give them a few witty lines to choose from.
• Guestbooks: - Let your affiliates help you build your Opt-In email lists with guestbooks. Offer them a commission for each email address they send you, or each resulting sale from the subscribers they send you.
• Product Images - Give your affiliates images that show and link directly to specific products. They'll be able to choose an image specific to their site, or choose several images to display.
• Review each affiliate Type and match them up with your new linking methods. You may have some linking methods that overlap Types -- this is okay. Just be sure you are concentrating on the affiliates' needs.
  

The Fourth Step is to decide commission levels. Your first decision will be to determine whether you want to pay a flat rate or percentage of each sale. Based on the needs you identified above for each of the affiliate types, decide on a commission amount for each Type. If you have a two-tier program, consider the possibility of different second tier rates as well.

The Fifth Step is to devise promotions for affiliate groups. Once you have your affiliates properly categorized and your system under control, consider developing promotions for your affiliate groups. Give them special incentives to sell more during a certain time frame, move seasonal products, or increase business during your slow months. Offer them additional commissions, or even bonuses for reaching a specific amount of sales.

In conclusion, if you follow the steps I have just outlined and if you are ready for a little work and a lot of organization, your affiliate program should be up and running in no time.

Top Search Engines

Ok, so you may know how the search engines work and you may know that you need to be listed by them, but do you know which engines get you more bang for the buck? In this article, we will review the top search engines on the Internet today.

Google

Google has increased in popularity tenfold the past several years. They have gone from beta testing, to becoming the Internet's largest index of web pages in a very short time. Their spider, affectionately named "Googlebot", crawls the web and provides updates to Google's index about once a month.

Google.com began as an academic search engine. Google, by far, has a very good algorithm of ranking pages returned from a result, probably one of the main reasons it has become so popular over the years. Google has several methods which determine page rank in returned searches.

Yahoo

Yahoo! is one of the oldest web directories and portals on the Internet today, and the site went live in August of 1994. Yahoo! is a 100% human edited directory, and provides secondary search results using Google.

Yahoo! is also one of the largest traffic generators around, as far as web directories and search engines go. Unfortunately, however, it is also one of the most difficult to get listed in, unless of course you pay to submit your site. Even if you pay it doesn't guarantee you will get listed.

Either way, if you suggest a URL, it is "reviewed" by a Yahoo! editor, and if approved will appear in the next index update.

AltaVista

Many who have access to web logs may have seen a spider named 'scooter' accessing their pages. Scooter used to be AltaVista's robot. However, since the Feb 2001 site update, a newer form of Scooter is now crawling the web. Whichever spider AltaVista uses, it is one of the largest search engines on the net today, next to Google.

It will usually take several months for AltaVista to index your entire site, although the past few months scooter hasn't been deep crawling too well. Unlike Google, AltaVista will only crawl and index 1 link deep, so it takes a good amount of time to index your site depending on how large your site is.

AltaVista gets most of its results from its own index, however they do pull the top 5 results of each search from Overture (formerly Goto).

Inktomi

Inktomi's popularity grew several years ago as they powered the secondary search database that had driven Yahoo. Since then, Yahoo as switched to using Google as their secondary search and backend database, however Inktomi is just as popular now, as they were several years ago, if not more so. Their spiders are named "Slurp", and different versions of Slurp crawls the web many different times throughout the month, as Inktomi powers many sites search results. There isn't much more to Inktomi then that. Slurp puts heavy weight on Title and description tags, and will rarely deep crawl a site. Slurp usually only spider’s pages that are submitted to its index.

Inktomi provides results to a number of sites. Some of these are America Online, MSN, Hotbot, Looksmart, About, Goto, CNet, Geocities, NBCi, ICQ and many more.

Lycos

Lycos is one of the oldest search engines on the Internet today, next to Altavista and Yahoo. Their spider, named "T-Rex", crawls the web and provides updates to the Lycos index from time to time. The FAST crawler provides results for Lycos in addition to its own database.

The Lycos crawler does not weigh META tags to heavily, instead it relies on its own ranking algorithm to rank pages returned in results. The URL, META title, text headings, and word frequency are just a few of the methods Lycos uses to rank pages. Lycos does support pages with Frame content. However, any page that isn't at least 75 words in content is not indexed.

Excite

Excite has been around the web for many years now. Much more of a portal than just simply a search engine, Excite used to be a fairly popular search engine, until companies such as Google seemed to have dominated the search engine market. As of recently, Excite no longer accepts submissions of URL's, and appears to no longer spider. To get into the Excite search results, you need to be either listed with Overture or Inktomi.

Looksmart

Getting a listed with Looksmart could mean getting a good amount of traffic to your site. Looksmart's results appear in many search engines, including AltaVista, MSN, CNN, and many others.

Looksmart has two options to submit your site. If your site is generally non-business related, you can submit your site to Zeal (Looksmart's sister site ), or if you are a business, you can pay a fee to have your site listed. Either method will get you listed in Looksmart and its partner sites if you are approved.

Once you have submitted your site, and it is approved for listing it will take up to about 7 days for your site to be listed on Looksmart and its partner sites.

AOL Search

America Online signed a multiyear pact with Google for Web search results and accompanying ad-sponsored links, ending relationships with pay-for-performance service Overture Services and Inktomi, its algorithmic search provider of nearly three years


Take some time to register with these search engines as soon as possible and watch the traffic grow.

What businesses are succeeding on the Net?

We will address the most basic question any Internet business owner will have to answer at one point or another…”what should I sell?”.

After the settling down of the dot-com bubble, sanity checks have brought realistic expectations to the fore. Initially, a backlash was seen, forecasting the doom of the Internet. Finally, merits have made the Internet gain its rightful place. In breakthroughs that show the promise of e-commerce wasn't all smoke and mirrors, four dot-coms recently reported their first quarterly profits. The list of the Internet’s publicly held moneymakers includes eBay Inc., Amazon.com Inc., Yahoo! Inc., Overture Services Inc., Expedia Inc., FindWhat.com Inc. and E-Trade Group Inc. Several privately owned dot-coms, including search engines Google and DealTime, say they have been making money, too.

In 2001, the last full year where numbers are available, the Department of Commerce broke out e-commerce sales versus total U.S retail sales which revealed the $3.16 trillion retail industry saw a total of $37.7 billion in sales take place online -- comprising 1.2 percent of the total. This year e-commerce is tracking about the same. Through the third quarter, the last full quarter where numbers are available, total retail sales were $856 billion versus $11 billion in e-commerce, about a 1.3 percent share.

There were big gains made in Home and Garden, a 78 percent increase; Furniture and Appliances, a 75 percent increase; and Toy shopping online with a 61 percent increase in the year 2002. There is no doubt that online shopping is growing.

Nielsen//NetRatings found that more than 35.5 million U.S. Internet users made shopping trips to virtual department store sites during the week ending November 3, 2002 - that's a 20 percent increase from the week ending October 20 and roughly 14 million more than almost the same time period in 2001.

There is a growing tendency amongst Internet users to pay for valuable content online. There are many reasons for this. First, only a few websites operated by big companies can afford to provide valuable content without being compensated. The rest of us can't be so generous. And trying to recapture our expenses by selling advertising on our websites has failed to pay the bills. Online advertising and click-through rates are on the decline.

Second, many people are now more than willing to pay to receive quality services and products even if they were offered for free earlier. Several paid content websites have already proven this unmistakable trend. The discerning buyer values his/her time as also the quality of information or service and is willing to pay for it.

However, not all products can be sold on the Internet. Some products may be better suited for online sales than others; others simply will not work on this new commercial medium. According to an Ernst and Young study, the most popular online purchases are computer related products (40%), books (20%), travel (16%), clothing (10%), recorded music (6%), subscriptions (6%), gifts (5%) and investments (4%).

Businesses offering paid services have also prospered enormously. The top three categories (Business Content/Investment, Entertainment/Lifestyles and Personals/Dating) accounted for 62% of all paid content revenues in the first three quarters of 2002. The total market for paid online content in the U.S. grew to $361.4 million for the quarter, a 14 percent gain over the previous quarter and a 105.3 percent gain over Q3 2001. An interesting statistic put forward by this report is that 85% of money spent by U.S. Consumers for online content goes to the top 50 sites in most of the categories.

The graph below (Top 3 Content Categories) is indicative of this change.

In terms of “stickiness” of different categories, Business sites - especially finance and investment rank the highest. In other words, users are more likely to spend longer time surfing through a business website compared to other categories. This study was conducted by Nielsen//NetRatings. The table below shows the most addictive web categories for 2002.

Category	Time per person (hr:min:sec)	Audience
Business – Finance and Investment	0:21:33	51,586
General News	0:15:47	64,822
Entertainment	0:14:32	45,922

Source: Nielsen//NetRatings

According to the above figures a person spends about 22 minutes on a finance website on an average.

Should you be selling a product or a service?

The Internet is primarily used to communicate, entertain, educate and research. It is thus no wonder that nonperishable, information-intensive products - including computers and software, books, travel, consumer electronics, magazine subscriptions - are the most popular online products at present. Content-rich sites, subscription-based sites to advertiser-supported sites focusing on a wide range of topics, have been sprouting all over the Internet.

Services such as hotel reservation, air travel and investments have successfully translated themselves to the Internet.

Unique services such as Online driving schools have been prospering. Some states in the US have set up online payment sites for Government services. Residents of a state can log on to a common site to pay all bills and other expenses, such as parking tickets to the local/County courts.

However, all kinds of services cannot be run entirely on the Internet. The Internet is less effective when face-to-face selling is needed to close a deal. The Internet can give lots of preliminary information that's useful in setting the scene for the closing. But the actual closing takes place offline - i.e., not on the Internet.

Products can also be marketed and sold successfully on the Internet. The kinds of products and services that sell best on the Internet are those that take advantage of the convenience of the Net. Remember that convenience is the primary reason why consumers flock to the Internet in the first place. People can shop any hour of the day at any site. They can avoid crowded stores, irritating sales clerks, and even avoid pickpockets.

Offbeat or unusual products and services often attract online attention and sell strongly. You would generally not try to sell items people can get at the corner store. Thus, few toothbrushes are sold on the Net; the same thing with daily food and beverage purchases. But special cheeses, rare cigars, Turkish plates, long-aged wines, even diamonds, can and do sell on the Net.

Most products sold by catalog and mail order also sell well on the Net. However, people tend to buy only those products that could be shipped at a reasonable price. Higher shipping costs diminish the price competitiveness of online products and turns-off a lot of potential buyers. In fact, high shipping costs is the primary factor that discourages people from buying online more than any other single reason. An Ernst and Young report shows that 53 percent of online shoppers are concerned with shipping costs that are too high, compared to only 19 percent who are concerned with credit cards being stolen.

As an online merchant, you have to work out the advantages as well as disadvantages of selling either products or services. However, in the recent past, online services have known to flourish. Nevertheless, if you chose to sell products you need to rethink your product offering if the total costs of the product and the shipping are higher than what is offered elsewhere.

Take some time to evaluate your products or services. There is a growing market of potential customers on the Internet, you just need to offer the products and services they are looking for.

A few avoidable errors when promoting your affiliate program

In this article, I have listed a quick and easy bulleted list of does and do not’s when trying to promote your affiliate program.

• Many affiliate marketers make a huge mistake of posting their ads on forums. Forums can be used to promote your affiliate programs and your website but in a proper manner. Posting banners is very similar to spamming and may easily upset forum administrators.
• Always do your research before promoting your affiliate program to a potential customer. Do not offer affiliate programs to visitors who are not at all interested in the products associated with the program. This is a futile endeavor.
• If you promote affiliate programs offered by other merchants, ensure that you develop your own advertising copy. Many websites commit a common mistake of using the same advertising copy as used by the merchant themselves.
• Avoid Copyright infringement in all cases. Always use original content or ask permission to use graphic images or text found on other websites.
• Do not submit your programs to free websites. These may be free but your programs would hardly ever be noticed, especially by Search Engines. Moreover, your own ranking would get lowered if you submit your affiliate programs to such websites.
• Avoid using caps on your web page or email ad. Using caps is symbolic to shouting, which never goes well with potential customers. A few words may be written in capital text to give them additional emphasis. However, such practice should be limited.
• Always respond to all queries sent by visitors as soon as possible. A slight delay in your response could easily result in loss of a potential client.
• Do not use pop-up ads along with your webpage. Most surfers are likely to close their browser if they come across pop-ups.
• Do not host your website on a free server or use free email accounts. This gives a negative impression to visitors. Using free hosts and email accounts looks cheesy and loses sales.
• Many websites do not have an opt-in list. Create an opt-in and opt-out list for your visitors. Without these, there is no way of tracking potential customers. Visitors should be allowed to opt-in at any time as well as opt-out at any time.
• Most sites have a poor tracking mechanism. It is essential that you track all business activities. Accurate record keeping is crucial. There are many software tools, discussed earlier in this chapter, than can automate your record keeping process with minimal error.
• A 'mall' site is best used as a central hub to send visitors to your other domains. As a main or only site, unfocused mall sites don't get traffic from the engines, and they don't convert well to sales. Highly focused theme sites attract traffic and sales.
• Offline advertising may not be effective. A lot of money and effort should not be wasted on offline advertising. Most people rarely check websites that are advertised in local magazines or newspapers.
• Avoid focus on animated banner ads. These simply use up bandwidth, thus making web pages load slower.
• While advertising do not degrade other competitors. It is recommended that you highlight your products’ uniqueness and superiority but never mortify other products.
• Banners or text links that expire are guaranteed to eventually send your visitor to a broken link or show a broken graphic on your page. Time sensitive advertising is best used only in email advertising campaigns.
• Never put affiliate links on your homepage. This is similar to asking your visitors to leave immediately. Give them a chance to browse, sign up for your newsletter and decide that they'd like to come back to your place before introducing them to your affiliates.
• Technology changes with amazing speed. To keep up with this rapidly evolving industry, you must invest time and money in research. The investment is a tax write-off, and will pay you back many times over in additional revenue.
  

Hopefully this list has proven helpful to you and has shown you some red flags to avoid when it comes time to promote your own affiliate site. Good luck and take care.