That's pretty much how affiliate marketing works. Through these online programs, you sign on with a partner that markets your product or service, often through a link or banner ad you place on their website. The affiliate then gets a commission based on sales, visits, or customers that result from those efforts. It's the ultimate in pay for performance. An affiliate partner will do a lot of the marketing for you. And you only owe money if they provide the outcome you want, says Marty Fahncke, president of FawnKey & Associates, a consulting firm with expertise in affiliate marketing.

our affiliate can be anything from a website or enewsletter to a shopping portal, to name a few. Fahncke points to one client, a small business selling sunglasses, as a case in point. Perhaps their most successful affiliate is a website devoted to bicycling, which recently included an article about the product and a link to their site. For more detail go to:www.affiliate-sale-booster.com. The company pays the affiliate a commission on sales. At the same time, however, the firm uses a variety of other affiliates. The bottom line:You want a good mix of different types of channels, says Fahncke.

How many? There's no magic number. For more help visit to:www.ppc-profit-marketer.com. You can make money with perhaps twenty, or in some cases, thousands. It all depends on the quality of the partner. For example, three or four effective affiliates that specialize in search engine optimization can provide you with as much business as hundreds of mediocre websites, especially if they're not quite the right fit for your product and demographic.

Commissions run the gamut, from 3% to as much as 90%, although the average is around according to Fahncke. The amount depends on a variety of factors. High volume products, for example, tend to command lower rates. At the same time, you get what you pay for. Take Steven Rothberg, president of CollegeRecruiter. a career site for college students and recent graduates. He pays about 50% more than many other companies in order to attract the best affiliates possible. About 10% of his revenues come from his affiliate marketing program.

That's only the first step. Just because you've signed a deal with an affiliate doesn't mean it will let you go live. To make sure you are activated, as Collins puts it, you also need to work constantly at staying top of mind. For example, he will send the top twenty affiliates for each client gifts, and call them at least once a month.

Somewhat like the classic Mary Kay-style Multi-Level Marketing arrangements, these affiliates use a referral network to generate more sales for the company and commissions for themselves. An affiliate that is working with a particular company's program will attract other partners to join up. It, then, receives commissions from any activity those newer affiliates generate. The system ensures more income for partners throughout the chain and greater visibility for the small business. Plus, It saves time if you can't do your own recruiting,says Collins.

You need a method for tracking traffic, sales and payments. There are two ways to go about it. One is to install software in-house and do it yourself. That can be a big job, however, especially if you're short-handed. The other is to hire a third party to provide the technology and customer support needed to facilitate the transaction. You'll pay a percentage of your affiliate's commission to the firm.