Affiliate (aka Associate) programs are a win-win situation for everyone involved. Internet-based merchants hook up with affiliates to generate traffic to their web sites. Affiliates get paid if the traffic from their site visits the merchant web page and makes a purchase. The smart Internet entrepreneur does some research to determine the best affiliate programs for his or her business.The affiliate program should be one that is of high demand, offers services or products that are useful and of high quality, downloadable information products (e-books) are often the best and easiest to sell, because the customer receives the product instantly after payment.A good program offers high commissions to affiliates, excellent customer service and a moneyback guarantee.

Where to Look
Affiliate networks are the middle man between affiliates and web sites with affiliate programs.
Look for affiliate networks that provide all the tools needed to set up and maintain an affiliate program. AssociatePrograms.com is a popular directory with information about merchants that pay you to sell their wares.

Commission Junction is a free network that offers access to thousands of the best affiliate programs. Commission Junction combines all your affiliate earnings (product sales, on-line ads, links) into one monthly check.

What to Look for
The best affiliate programs will be those that target your customer base. An on-line florist would get little traffic from a pet supply website. You want an affiliate whose business is similar or comparable to your product. Avoid affiliates with low quality products. Ask to speak to existing affiliates to find out if a company is reputable.

Referral traffic may link to the merchant site and not buy initially but return to make a purchase weeks later. Look for affiliate programs that remember your site was responsible for that customer. The best affiliate programs remember you for 60 days by using cookies to tag the customers computer when he visits the merchant site.

The best affiliate programs offer reliable support such as ads, logos, and sales advice. Good programs also provide timely updates on click through sales and earnings, and, respond to questions or problems within 24 hours.

Getting Paid
There are three common affiliate payment plans. With pay per sale, the merchant pays when the affiliate sends a customer who buys from the merchants site.
The payment could be a set amount or a percentage of the sale.

In a pay per click set up, the affiliate is paid based on the number of people who visit the merchant's web site regardless if a purchase was made.Obviously, some programs offer more generous commission than others.You should always read the terms of service to make sure you know how everything works.