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Affiliate programs
take many formats.
Typically, publishers display banner ads on their Web
sites that promote media buyers' services or products.
When visitors to a publisher's
Web site click on the banner, they are taken to the Web
site of the media buyer.
Some media buyers use their
affiliate programs to pay publishers simply for sending
visitors. These programs pay the publisher for click-throughs,
which occur when the visitor clicks on the banner and is
taken to the media buyer's site.
Other programs pay publishers for
sending visitors who fill out a form on the media buyer's
site. These visitors are called leads. Because the media
buyer knows more about the lead and a lead is closer to a
customer than a mere visitor, publishers generally receive
more money for sending leads than visitors.
Even more valuable than a lead is
a customer, so publishers tend to make the most money if
they send a visitor who buys something from the media
buyer's site.
How do you know which affiliate
program format is right for you?
Know Your Users
Perhaps the most
common misconception about affiliate programs is that
affiliates always make the most money from media buyers
who pay for click-throughs.
Although that is sometimes true,
my experience has been that affiliates make the most money
from programs that are properly aligned to the interests
of their users. For example, the overwhelming majority of
users of our Web site, CollegeRecruiter.com, are college
students and recent graduates.
Regardless of whether we would be
paid per click-through, per lead or per sale, we would
decline the opportunity to become an affiliate of a media
buyer if that buyer wanted us to promote credit cards that
require the holder to have an annual income of at least
$100,000 (U.S.).
Our users simply wouldn't
click-through, fill out a form or sign up for the cards.
The amount the credit card company would pay to us for any
of those actions would be irrelevant because our users
just wouldn't be interested.
We do, however, heavily promote
credit card offers that are targeted at young
professionals.
We've promoted some that paid us
by the click-through. We did OK. We've promoted others
that paid us by the lead. We did a bit better. We
currently promote one that pays us by the sale, which
occurs when the applicant is approved for the card.
We make far more money being paid
by the sale than by the lead or by the click.
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