eCashMaker - Step By Step guide to making money on the Internet

Chapter 3:
Affiliate Marketing - Part II

Understanding Commission Structures

Pay Per Sale: As discussed earlier this is the most common form of Affiliate Program payment. Affiliates get a commission only if a sale is completed amongst the visitors they have forwarded with their Affiliate link.

There are a few additional details that you need to keep in mind while signing up for a merchant:

1. TRIAL PERIOD. Some merchants have a trial period for the product they are selling and the sale is assumed to be completed only at the end of the trial period (usually 30 days). In such cases the customers account is debited only after the trial period and hence you will also earn your commission only at this stage.

Such Affiliate Programs are rare - and these details will be clearly provided in the Merchant's Affiliate Agreement.

2. REFUNDS. Some merchants allow for refunds if the customer is not satisfied. In such cases the Affiliate also loses his commission if his visitor who purchased later returns the item of purchase.

3. COOKIE DURATION. One of the things to keep in mind in a pay per sale program is the cookie duration. Cookies are used to track your visitor and to figure out when a sale from your site is eligible for affiliate commission. Merchants set specific cookie time periods - from a few hours to a few months, some even use lifetime cookies. This basically defines the time length in which an affiliate will get credit for a sale.

Typically Pay Per Sale commission ranges from 5% to 30%. A general thumb rule: Popular products like books, music and electronic goods offer up to 15%. Niche products like utility software, financial services offer 15% to 30%. Small operators, with products that are generally single person created like eBooks, Sales Letter Templates etc, offer up to 50% commission.

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