How Affiliate Programs Work

Affiliate programs are revenue sharing arrangements set up by companies selling products and services and as a web site owner, you are rewarded for sending customers to the company.

When you send people from your website to a site such as Amazon that link contains your unique affiliate ID, when they buy something, or sign up for something, you are paid a commission directly into your bank account.

As you are sending the person to the merchant they will handle all the order processing such as payments and delivery making it easy for you to concentrate on marketing your site.

For example, with Amazon’s leadership status in Internet e-commerce, Amazon Associates have many ways to make money: not only will you earn money on the sale of books, music, and DVDs, but also on toys, electronics, kitchen, apparel, jewellery, and more depending on the niche of your site.

When you join the program you will automatically be enrolled in the Performance Fee Structure.  Which works that the more traffic you send to Amazon the greater the reward.

Your advertising rate will range from 4% to 15% , from the tables below you can see that certain products have a fixed advertising rate where as others the more units you sell the greater the reward.

Fixed Advertising Fee Rates for Specific Product Categories

Fixed Advertising Fee Rates for Specific Product Categories

Volume Based Advertising Fee Rates for General Products

Amazon is used as an example here, we also install on our sites other top affiliate networks with great payment structures such as Clickbank and Google Adsense.