Everywhere you look you see affiliate program offers for every product or service that you can think of. Some have fully automated systems that sell high volumes of hard products all over the world. In case you don't know, "hard" products are those that you can touch...unlike an ebook or downloadable web template. Many affiliate programs have several thousand affiliates and one or two of the bigger companies have over one million affiliates.

What are the advantages of joining an affiliate program?

They provide a ready-made business. This is a very big plus for those people who want to earn some kind of living off the Internet but lack the knowledge or inclination to set up a business by themselves.
Commissions and rewards are generally good, and the more established programs offer a real chance of advancement to higher and better-paid levels.
Other affiliates are usually on hand to offer practical support.

What are the limitations?

You are restricted in your promotional activities due to the fact that you do not actually own the affiliate site they give you. You won't be able to put such things as banners, images, links, meta tags, etc. onto your page. The URL of your affiliate page is often either too long or contains such awkward things as question marks, which many Search Engines will not index.

Any promotional ads or articles have probably already been used by thousands of other people and consequently may have lost its impact, making it more difficult to achieve sales or referrals.

If the program you have joined has not yet established itself (or in some cases even if it has), then you may encounter problems with payments owed to you not being
honored. You also run the risk of low quality products or sub-standard statistics that do not accurately record how many referrals or sales you have made.

You may be required to purchase a minimum quantity of the product on a regular basis before you start to qualify for commissions or even before you can become an affiliate. You may not get the technical or affiliate support you might
expect from the company. This may be due to inadequate staffing, or the company's negligence. Other people in your downline do nothing to promote the program.
At least four of the above limitations can be overcome with a little time and effort. You could, for example, come up with fresher ads to promote the program (provided this isallowed).
If the company supplies the email addresses of people in your downline, then you could offer to help the less active members. Very often these people are passive not because they are lazy or apathetic but merely because they don't know HOW to promote effectively! your guidance could mean the difference between no sales or referrals and healthydownlines and residual incomes.

As regards promoting your actual page, here are a couple of little tricks that should overcome a number of restrictions:
Cloak your Affiliate URL to stop hijackers Affiliate Masker While this will not help you to get listed on the major Search Engines, it will make your web page easier for
prospects to remember and type into their browser's address bar.

Go to your affiliate page. Place your mouse pointer anywhere on the page and right click once. In the drop-down box choose "View Source". This will display the HTML for the page. Save this to your hard drive as a HTML document using the "Save As" function. Upload the page to your web site. If you don't have a web site then get some free web space
from one of these:

http://www.tripod.com/
http://www.fortunecity.com/
http://www.hypermart.net/index.gsp
http://www.coolchat.com/
http://www.crosswinds.net/
http://www.htmlpublishing.com/
http://www.freehomepages.com/
http://www.pageproducer.com/

Submit your 'new' page to the Search Engines. You are also now able to place banner codes, links, images, testimonials, in fact anything you want onto these pages, because you are in control of the HTML. A word of caution, though. Don't change the actual HTML of your original affiliate page. Just put the other stuff, like banners etc, around it. Making this "mirror page" of your affiliate page will
dramatically improve your advertising options.

When selecting an affiliate program to join you need to know how to choose a successful affiliate program.

Look in the wrong place and you might find a dud but look in the right place and you might be on to a winner.

Here are 7 tips to help you choose a successful affiliate program to join:

1. Look at associateprograms.com This is the ‘affiliate central' of affiliate programs. You can virtually guarantee to find a successful program here and you can choose from tons of subject areas.

2. Look at clickbank.com Nearly every product they have for sale has an affiliate program. Many of them are extremely good and most pay very high commissions. (some over 50%)

3. Affiliate resource sites usually offer their best affiliate programs. As affiliate resources sites are specialists in affiliate programs you can be pretty sure of choosing a
successful affiliate program from them.

4. Look for affiliate programs that are offered through any ezines you receive. Chances are the ezine owner has an
affiliate program and if they have a good ezine they probably will have a good affiliate program.

5. Think of things that ALWAYS sell. Like web site design, ebooks, music and travel. Stick to proven online sellers and the affiliate program will have a much greater chance of being successful.

6. Seek out articles on affiliate programs. There are many good writers out there who have been successful with affiliate programs. Try to find articles they have written to see what
has worked for them.

7. Take courses. Many sites offer free online email courses for affiliates. Take some of these courses to learn more about what it takes to be a successful affiliate.

Affiliate programs are a great way to make money but one of the secrets to affiliate success is to choose the right program in the first place. Use these 7 tips to help you succeed.

About the Author

First of all, let's define what we mean by an affiliate program. An affiliate program is basically an internet business set up by someone else. They could be selling physical goods, education, information or any other products that can be sold online. By signing up as their affiliate, you are helping them promote their business or store. In return, they will pay you a commission for each sale you bring them. The amount of commission varies between different affiliate programs. Examples of affiliate programs include Amazon.com and Wordtracker, which you can visit at:

http://www.onlinebiz-help.com/links/wordtracker.html

1) EARNINGS

So how does an affiliate program differ from starting your own online store? Let's start by looking at the potential earnings. (After all, the main reason everyone wants to start an internet business is for the money). When you sign up for an affiliate program, you will be paid a commission for each sale you refer to the online store. This commission can range from 5% to 15% for physical products, and possibly up to 50% or more for virtual products such as subscriptions and ebooks.

On the other hand, if you start your own store, your profit can be much higher. For virtual products, your profit can be 100% of your selling price. After all, once the newsletter or ebook is created, you do not need to spend any more effort. When someone buys your ebook, they just download it from your website. If you are selling a physical product, your profit depends on whether you are manufacturing the product yourself, or buying from a wholesaler or dropshipping company. Your profit in this case could easily be more than 40% or 50%.

So, if you only consider the potential earnings, starting your own business is more lucrative than joining an affiliate program.

2) LOGISTICS

However, money isn't everything (Or so they say). When you are starting your own internet business, there are a number of logistic issues you need to look at. Here are a few things you would need to take care of:

a) Create your website
b) Design your product (if you are selling new products)
c) Create your product (if you are selling new physical products, or any virtual products)
d) Set up an online store
e) Set up a merchant account or payment gateway
f) Set up a warehouse or storage space (if you are selling physical products)
g) Have procedures and staff ready to fulfill orders
h) Set up an affiliate program to get others to market the products for you
i) Monitor for fraud
j) Monitor stock levels

As they say, "No pain, no gain". Having your own store pays very well, but requires a substantial time investment from you.

On the other hand, if you sign up for an affiliate program, all you need to do is set up a website to promote the program. All the ads, banners, marketing text etc will be provided to you by the affiliate program. Your only responsibilities would be to get people to visit your website, and hopefully click on the affiliate links to buy the products that you are promoting.

3) CONVERSION

Whether you have your own business or are promoting an affiliate program, the bottom line is the conversion rate, or the percentage of visitors that actually buy something from you. A number of factors influence this conversion rate. Factors as quality of the product, quality of the website, customer support are all important. However, I personally believe that the most important factor is trust.

When a potential customer arrives at your website, he will need to trust your site enough for him to be willing to buy from you. After all, on the internet you are just a faceless salesman. He doesn't know who is actually running the site and whether he will actually get the goods that he orders.

Having said that, one of the key methods of garnering trust is by recommendation and referral. If a store is being referred to or recommended by another website, the potential customer will feel that the store is trustworthy. After all, if the store is not trustworthy, why would the other website recommend it?

This is where affiliate programs shine. When you refer a potential customer to the store for which you are an affiliate, the customer will feel more relieved, since the store is being recommended by your site, a 3rd party. The customer will be more likely to buy from the store, benefiting both the store, and you as well.

There are both pros and cons to joining an affiliate program. You might earn less with an affiliate program compared to starting your own store, but I believe the benefits of not having to be responsible for the logistics makes affiliate programs are very viable "passive" source of income.

For more information on affiliate programs, do visit http://www.onlinebiz-help.com