According to HowStuffWorks, “Affiliate programs, also called associate programs, are arrangements in which an online merchant website pays affiliate websites a commission to send it traffic. These affiliate websites post links to the merchant site and are paid according to a particular agreement. This agreement is usually based on the number of people the affiliate sends to the merchant's site or the number of people they send who buy something or perform some other action.

Developing an effective commission plan can be a difficult task. In fact, according to research by Anne Coughlan, professor at the Kellogg School of Management at Northwestern University, there is no single “best” compensation plan. You must consider many variables when designing your plan; you must incorporate the profit margins of your products, the goals of your company and the needs of marketing professionals in that plan. A well-designed commission program should be fair to both the marketing individuals as well as the company providing the commissions.


These days everything can be done online from buying movie tickets to buying furniture for home. Internet has brought tremendous changes in our life style. Every business should recognise this and establish their presence on the internet. Internet marketing is beneficial for all the types of businesses. This will allow you to expand your visibility to larger population.
Affiliate marketing also is a very broad term; under this umbrella there are several different strategies that can be employed to generate affiliate revenue. The most appropriate and lucrative method (or methods) can depend on a number of factors, including your site’s niche and characteristics of your audience. Below is an overview of some of the most popular affiliate marketing implementations, along with examples of each. Click here to read more about the proven affiliate marketing strategies.
Decide on the products you want to sell and choose an online distributor that offers affiliate accounts for those products. Amazon offers thousands of products ranging from books to computers. ClickBank acts as a distributor for thousands of products like e-books and online videos. Some manufacturers offer affiliate programs directly through their own websites. Other manufactures, like Dell, have affiliate programs through third-party services like Commission Junction.
The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers & Gifts. Launched on the Prodigy Network in 1989, PC Flowers & Gifts remained on the service until 1996. By 1993, PC Flowers & Gifts generated sales in excess of $6 million per year on the Prodigy service. In 1998, PC Flowers and Gifts developed the business model of paying a commission on sales to the Prodigy Network.[8][9]
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