FAQ about Affiliate Programs

1. What is an AP?

2. Do I need a web site to run an AP?

3. Why do people/businesses implement APs?

4. What advantages does an AP have for its organizer?

5. What risks does an AP have for its organizer?

6. What is the difference between one-level and multilevel APs?

7. What is the difference between APs and  "get rich quick schemes" ?

8. Where can I find additional info about APs?

 

1. What is an AP?

An affiliate/associate program is a cost-effective way to promote your products/services/ideas or information by means of sharing profit with promoters (affiliates).

2. Do I need a web site to run an AP?

No, you do not need either a site, or a business to run an AP,but you do need a something to promote -an idea, product, information or services.

See Cases.

3. Why do people/businesses implement APs?

The main reason is to promote something quickly and with minimal costs/expenses.

4. What advantages does an AP have for the its organizer?

The first is - minimal costs.

The second is a viral distribution of promoted materials.

The third is an opportunity to gather valuable marketing info on affiliates and customers.

5. What risks does an AP have for the its organizer?

Financial risks:

            If you pay per click, or fixed amount per lead/sale, there is a risk that your payments may exceed your funds.

            Programs that pay a percentage from sales have no such risks.

Other risks:

Any AP has some risk of generating "spam" promotions by affiliates, and this may have a negative impact on your activity/business. That is why, in addition to a "non-spam" agreement with affiliates, AP managers should use "spam" reduction techniques.

6. What is the difference between one-level and multi-level APs?

One-level programs reward affiliates for sales/leads/clicks generation but DO NOT reward affiliates for contributions to the affiliate's net formation.

Multi-level programs reward affiliates for both of these activities. In general, multi-level programs offer greater potential income to affiliates.

7. What is the difference between APs and "get rich quick schemes"?

First of all, in majority of "get quick rich schemes", you are asked to do something for the message sender (it may be a payment or some type of work) before you will be rewarded. The sender promises you will quickly become a rich and describes the method, but does not guarantee this.

In an AP, you do not pay anything upfront, and your income is proportional to each sale/lead or reference (click), depending on the type of program.

The second main difference is that not suprisingly, "get rich quick schemes" have no authority to guarantee payments to you, only promises.

An AP has such authority, it is known as an AP organizer (a company/organization or person that implements the AP).

Copyright © 2002 AdvMathAppl
Last modified: Jan 14, 2002