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How do Affiliate Networks in the US Work?
http://www.1webindex.com/articles/57/1/How-do-Affiliate-Networks-in-the-US-Work/Page1.html
By Andi Smith
Published on 10/11/2010
 

Affiliate networks in the U.S. act as the liaison between publishers or affiliates and merchant affiliate programs. Such a network helps a website publisher to locate and take part in lucrative affiliate program that would secure more visibility for their websites, direct more traffic, and thus earn an income. The network also brings in additional business opportunities for websites that offer affiliate programs or online merchants, by promoting them to a larger group of publishers spread all over the world.

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How do Affiliate Networks in the US Work?

Affiliate networks in the U.S. act as the liaison between publishers or affiliates and merchant affiliate programs. Such a network helps a website publisher to locate and take part in lucrative affiliate program that would secure more visibility for their websites, direct more traffic, and thus earn an income. The network also brings in additional business opportunities for websites that offer affiliate programs or online merchants, by promoting them to a larger group of publishers spread all over the world.

 

An affiliate marketing network may usually offer these services: affiliate tracking, database management, paperwork, legal documentation, reporting, and advancing payments to affiliates.

 

An affiliate network in the U.S. using traditional modes of operation, typically offers publishers working with it, a share of the profit that has been generated by the merchant by attracting visitors to the website. The network may also offer a specified amount of money, or a fee, to the publishers, when the visitor to the website performs certain actions like registering with the site, subscribing to a newsletter, or making a purchase. This is the fee-per-action model. However, most affiliate networks in the U.S. operate on a revenue share model.

 

Soliciting the services of affiliate networks in the U.S. wring in the following benefits to an online merchant:

 

  • Gaining access to a wider consumer base that is spread all over the world
  • Keeping a count of the visitors to the website using the advanced tracking technology offered by the network

 

Additionally, there are also the benefits of faster payment processing and the advantages offered by advanced reporting tools.

 

The affiliates, in turn, can reap the benefits of a simplified process of registering for one or more affiliate programs offered by the online merchants and payment aggregation. They also have the benefit of working with the latest of reporting tools.

 

The US-based affiliate networks usually allow an affiliate to join its program free of cost. However, online merchants may require to pay a specified amount to take part in the program. With some networks, merchants may also be required to pay a certain portion of the commission paid to the affiliate. Some networks using a traditional mode of operation, may also require an initial setup fee and sometimes, fees for enjoying the benefits of a recurring membership account.

 

Affiliate programs in the U.S. have battled challenges like shifting from traditional modes of payment like wiring money to embrace more effective and prompt online payment solution solutions to garner more benefits for their clients and associates.