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18 August 2007

How Much Can You Earn?

Would you quit your job after registering with an affiliate programs? Most probably many of you may not quit yet. However the income earned from affiliate can help pay your monthly car payment or it may help you reduce your credit card balance.

In general, affiliate sales are a big part of online businesses and the numbers of affiliate program is keep growing and expanding everyday throughout the year. Based on the finding by internet consultant Jupiter Communications, affiliate sales account for as much as one quarter of all online spending. Now that’s to me is very encouraging indeed.

What determine the amount of money you will make from affiliate programs? Well, there are three factors; the products you sell, the amount of products you sell and the level of traffic your site gets.

a) The products you sell:
Usually affiliate programs pay you a commission in the range of 4% to 30%. The commission you will gets will depends on certain product you manage to sell. For example Amazon.com pay you commission based on the following two options:

Option 1: Performance Fee Structure
When you join the program you are automatically enrolled in their Performance Fee Structure. The Performance structure allows you to earn higher fees when you generate a sufficient volume of referrals that result in sales at Amazon.com during a month. The higher your referrals, the greater your earnings will be.
Under the Performance Fee Structure, your referral rate will range from 4% to 10%, and be based on your total number of shipped items from both Amazon and third-party sellers. The same rate will apply equally to both Amazon and third-party items and will apply to all referred items shipped during the month. Please refer to the referral rate tier chart below for additional details.



Option 2: Classic Fee Structure
This is their fixed-referral-rate plan. You earn a 4% referral fee on items offered by Amazon or by third parties.
Caps: Personal computers (both desktops and laptops) have referral fees capped at $25, and Unbox Video Downloads are capped at $1.50 per item. No other product lines have their referral fees capped.

Therefore the amount of commission you earn for different products varies.

Please visit amazon.com for more info at :www.amazon.com,

b) The amount of product you manage to sell:
Logically speaking, if your site manage to sell 200 items for $60 each will make more than a site that sell only 30 items of the same items, Your ability to lure and sell the products to your site visitor will depends on how well you design your site; how effective is your selling technique, the better the visitor know the product the more chance of it being sold. You need to convince them and I suppose it all to do with “presell”. Think of a good marketing strategy.

c) The level of traffic your site gets:

The more traffic the more chance of selling your products. I think it to do with the quality of your site content. If your content is of good quality, more will visit. Having good quality content is crucial and it will determine how successful your online business is.

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