Affiliate marketing can be a great source of revenues. But remember that there are certain rules e should understand and implement. Affiliate marketing works in a simple way. You sign a partner who would advertise your product on their website through a link or a banned ad. In this way you direct traffic to your website when a visitor clicks on the banner ad or the link
Use a number of affiliates
This means that use various websites for online affiliate marketing. Using a single website can have its pitfalls. Look for websites that are symbiotic in nature. Advertising for diapers on a pregnancy website is an example of affiliate marketing.
Know the commission to pay
Commissions on affiliate marketing can range between 3% – 90% depending upon the links that you choose. Though the normal commission rates would vary between 20-30% of the revenue models.
Focus on the caliber
Get great affiliate partners. Work on recruiting the best and work out a revenue model that would benefit both you and the partner. Revenue sharing should be agreed upon and just. In this way, you can get the best deal and retain the partnerships for a long period of time.
Decide if you want two tier or a single tier affiliation
This means that the affiliate partners may choose further partners. They use a referral network to generate more sales and commissions for the company. You can opt for the referral programs or have a single tier affiliation
Use software to track down the right solution provider
You can install software to track the traffic and the revenue generated by the affiliate sites. You can do it yourself or have a third party do it for you.
Beware of scams and fraud for affiliation marketing.