The just released 2007 AffStat Affiliate Marketing Benchmark report showed that the number of affiliates online is declining. Bad news? Hardly. The same report also shows that affiliate conversion rates (customers who buy) has increased anywhere from 1.6 to 5 percent. In a nutshell that means less affiliate competition and more money.



Whether you start your own program or join one that belongs to someone else, affiliate marketing can pay huge dividends. If you decide to start your own program, you will gain a highly motivated sales force that will generate free advertising for your business. The risk is negligible because your affiliates only get paid when a transaction is complete. That is unless you work out an alternative payment method.

There are four ways to set up the payment structure.

Pay per click: the affiliate is paid each time a visitor to their website clicks on the advertisement and is taken to the main sales or sign up page.

Pay per impression: The affiliate earns a profit each time the advertisement is shown.

Pay per lead: A visitor not only clicks on the advertisement but also performs an additional action like filling out a form to receive more information about your products and services. According to business experts and the internet trend lines, this form of commission payment is expected to skyrocket before the year is out.

Pay per sale: Pretty self explanatory and the most common method of payment.

The key to making your affiliate marketing campaigns work is to find affiliates with experience, a high traffic website and a proven track record. The good thing about these kinds of affiliates is they do not necessarily have to understand the business they are promoting plus they are already motivated to make money.

Or you can do some homework and find a company related to your business but not in direct competition. By finding the right approach you may be able to persuade that company to share their target audience with you. Again just make sure you are not in competition.

Setting up your affiliate marketing program is a snap. The toughest part is deciding how you are going to pay your affiliates. As a suggestion, you should probably stick with the tried and true pay per sale if you are just starting out. However you decide, get started with your own affiliate program now. The benefits greatly outweigh the risks and can go along way to putting your business on autoprofit.