You have decided to investigate affiliate programs a little further and now need to determine the how much you might be willing to pay someone to promote your business. There are several issues to consider. 

What is your Web site used for?
By determining the purpose of your Web site, you'll be able to identify the best method to reward your affiliates. Common Web site goals:
* Sell a Product or Service
* Generate Sales Leads
* Provide Information, Portal site

Selling a Product or Service consider:
1. 5-25% of the sale 
2. A fixed dollar amount based on a completed lead/sales form
3. Offer a flat fee for a completed transaction
4. Pay per click, you pay 3, 5, or 10 cents for each click-thru 

Most stores use method 1 because you are able to pay based on actual sales. Sites that sell services tend to use method 2, rewarding the affiliate for generating leads and then expecting their Sales staff to close the deal. Some companies will use a combination of these methods together. Sites that deal with large financial services offer large flat fees for completed sales from your leads or approved financial services. Example: Approved Credit Card $15, Mortgage Loan $10  

Generate Sales Leads
1. A fixed dollar amount based on a completed lead/sales form
2. Pay per click, you pay 3, 5, or 10 cents for each click-thru 

Most lead generator sites offer a .50, $1, or $3+ for completed forms. Some also go with pay per click banners or text links to generate extra track to their site.

Provide Information / Portal Site  
1. Per pay click - See note below*

Although other options exist, the pay per click method seems to work well to develop traffic. In early 1999, .02 per click was the norm, but pressure has increased with several large Web sites starting programs in mid-1999. Average rates currently run about .04-.07 per click. 

If you are still not sure what to do, check out your competition. Do they have an Affiliate Program? How do they pay? How can yours be more enticing?

You'll have the opportunity to determine ways to offer a better program than your competition or be the first one in your industry and start building affiliate relationships that will might lock out the competition in the future.

*One note from experience, monitor your affiliates beware of abuse on pay per click programs. Decide parameters for accepting affiliates and stick to it, fraudulent sites are out there and they want your money, stay on top of your program and you'll be fine.

Questions: Feel Free To Email Us At business@giftideacenter.com