In dictionary terms, the word "affiliate" means

"... to adopt, attach or connect to as member or branch...."

In Internet terms, "affiliate" is another word for a "seller", however, there are other words that are also used such as "Partner" and "Associate" - these, in the true sense of the words, are NOT the same as an affiliate. (See our Associate Members section)

When you sign up with a company as an "affiliate" - you make an agreement to promote their company by selling their product(s) and/or getting people to sign up to their company as affiliates. In return, you may get paid a commission.

Why do Companies use affiliates?

Companies realize that affiliate programs are well worth the effort to set up. The reason is that this is a fail-safe and cost effective way to selling more products with minimal overheads.

Companies with established affiliate programs will have in place some powerful back end software that is capable of managing the entire process between their affiliates and their company.

If the company did not use affiliates, their market place would be much condensed as they could not possibly reach the vast number of potential customers that use the web on their own. Their potential for expansion would be inhibited by the hours in a day and the number of staff they employed.

But that's not the main reason - the main reason is RISK SHARING - or RISK SHIFTING as I prefer to call it!

How does this affect You - the new affiliate....

Well, affiliate programs effectively shift that RISK SHARING onto you (and other affiliates like you) - hence I call it "risk shifting"!

How?.... well, you remember I mentioned that these companies will have in place some powerful back end software that is capable of managing the entire process between their affiliates and their company?

OK ... this software will include an automated system that will give you (the newly signed up affiliate) a username, password, and some sample advertising.

This advertising could be in the form of "your own web site" (really a mirror image of the companies site), copy text, emails, classifieds, solo ads, HTML links, audio links, button or banner impressions - or sometimes all of these.

These copy, or sample, links will all contain a code which will be unique to you (the new affiliate).

BE CAREFUL HERE - Sometimes, the "unique code" has to be inserted by you - so make sure you read what they send you or tell you to do otherwise you could be advertising someone else's "code" which you will not be given credit for!

That's it - you're on your own - all you'll have to do is advertise "your own web site" (the companies) site, service or product using the marketing material containing your code - follow up any enquiry with a few emails - make a sale - and BINGO - you get a percentage of the sale price!

 But hold on a minute .....

Advertising is a risky business isn't it?

Yes, you're right - your small business, coupled with an infinite number of other small businesses, will all be advertising these companies sites or products, quite often using one of the pre-written forms of advertising mentioned above - or at least a variation of the theme.

No-one ever really knows what is going to work in the advertising game - you've got to try it and track your response rate  to find out..... and by then it could be too late!  (you'll find more about tracking in  Website Automation Madezi )

Whatever you do, do not spend huge sums of money on advertising until you know the product has a market - it could spell instant disaster before you've got off the ground. (check out our Internet Marketing Section)

Be aware that some peoples advertising of affiliate programs will be effective and successful - a lot will not!

Does the company care? .... course not! .... It cost them next to nothing to set up each individual affiliate, so if some of them flop then what the heck?... they've got others that are succeeding ... and their advertising (their company name and product) is being consistently seen even if half of it doesn't produce a sale - it's still free advertising for them ..... and the risk of failing has been shifted from their company to their affiliates!

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