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Saturday, February 11, 2006

Affiliate programs turn web space into online real estate

Just as in real estate in the real world, space online is coveted and worth money. Even by owning a small website, it is possible to make money through an affiliate program by having other websites advertise in your space. It is also possible to make money through programs that pay if you refer people to their website through word of mouth. However, there is a lot of competition for this market out there, and it is important to be aware of your rights as you navigate the affiliate opportunities online.

No matter how busy a website is the owner can earn money by hosting banners for other companies. There are three ways in which to begin earning money through banner posting. The first is called “Pay-Per-Impression” where the owner of the website earns a small profit each time a company’s advertisement is displayed on their page. Therefore, the owner automatically earns more money if the website is busier because the banner is loaded, and therefore displayed, more often. “Pay-Per-Click” means that the owner only gets paid if the viewer clicks on the banner. However, payment is higher for pay-per-click affiliates than it is for pay-per-impression. The third type of affiliate program is the “Pay-Per-Sale or Lead” affiliate. This means that the owner is only paid if the business being advertised profits from someone who came to their site through yours.

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