Affiliate programs are essentially used to have someone else sell your product for you. This is done on the basis of commissions offered to other website owners who are willing to advertise the product on their website.
The affiliate program owner offers a so-called referral fee to the affiliate whenever someone registers to - or buys a product from the affiliate program owner's website via the link placed on the website of the affiliate.
This leaves advertising for the product of the affiliate program owner completely up to the affiliate who only receives a referral fee if a product is actually sold.
Affiliate programs can generate large networks of affiliated sites that can drastically increase the sales of a particular service or product. Affiliate program referral fees can be anything from a few cents per click to hundreds of dollars for a registration or a product sale.
Affiliate programs have the nice addition that they are incredibly easy to set up often only needing a few minutes per month of maintenance for potentially high returns.
As an affiliate all we have to do is place the link of the affiliate program on our website or find some other means to link to the affiliate owner's website and money will start coming in all on it's own.
As opposed to endless banner popups, pop unders, pop-ins and Spam mail affiliate programs often manage to be a more direct method of advertising. Only interested parties will generally click on affiliate links converting many of the casual surfers to actually interested buyers.
Today the affiliate program is one of the most popular tools for Internet marketing purposes.