What Is A Revenue Sharing Program... And How Do I Choose The Right One For My Site?

Revenue Sharing Programs also known as "Resellers, Affiliates & Associates" are simply a way for merchants and website owners to join forces and help each other make more money.

A webmaster or website owner like yourself (commonly refered to as the host site), agrees to link to the merchants site with a banner, button or text link for a fee.

The merchant rewards the website owner for the increased traffic, sales and leads that are derived from the host site. It is a win win situation. The merchant gets more traffic thus increasing sales & name branding while the webmaster earns money for his/her website.

If your visitor is going to leave, why not send them in a direction that you can profit from? With the high cost of advertising, it only makes sense for both parties to take advantage of these revenue sharing programs.

Choosing The Right Revenue Sharing Program For Your Site

Other than your competition, what other types of business share the same targeted market that you do? When you can answer that question, you know what kind of program(s) to look for. (ie. If you sell CDs on your site, you will not be joining a revenue sharing program with a merchant that also sells CDs. Look for a similar business that will complement your business.)

Once you have found a program that you feel would complement your business, carefully read the terms of agreement. Consider the following factors.

Are you paid percentage or flat fee?
What form of compensation is being offered?
Cash or credit towards future purchases?
Does the amount of your compensation depend on the volume you produce?
Is there a setup fee?
How will the merchant keep track of the referrals and sales?
How do you keep track of your account balance?
Are your sales statistics provided in real time?
How often do you get paid?
Is there a minimum dollar requirement to be issued a check? If so, how much?
Do you get paid only on the first purchase your visitor makes or on every purchase they make?
What if your visitor returns at a later date, do you still get paid?
How long has this program been in place?
Does this merchant have a minimum traffic requirement to join?
Do they have a list of other affiliates on their site?
How long is the agreement in effect and how do you get out of the agreement if you want out later?
What specifically is your responsibility in promoting? Banners, buttons or a link?
Do they supply the graphics and ad copy or do you write your own?
What is the overall look and feel of the merchants site? Does it look classy or trashy?
Do you want your business associated with this merchant?
These are just some simple guidelines to follow and should not be taken as the last word. Learn to trust your gut instinct when reviewing reseller programs. Your first instinct is usually the correct one.

About the Author

Article by Heather Colman, Publisher of eBook Searchengine News. Published bi-monthly by Colman WebShop, eBook Searchengine News will soon be the Premier "eBook Information" resource on the Net providing tips, tools, resources, and "proven" eBook marketing strategies for maximizing your eBook profits. Subscribe (ebsen-on@ebooksearchengine.com)

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