Making money online: the affiliate route
You might think that because there are thousands of companies running affiliate schemes around the world that there’s a lot of money to be made in it. There is, but not necessarily for you.
The problem with many of these schemes is that there are minimum payment amounts so in many ways it pays the companies running the schemes to have a thousand affiliates each bringing them one sale rather than one affiliate bringing them a thousand sales. In the first case the only cost to running the scheme is the administration as there’s often no sales commission to be paid whilst in the second case they’d end up paying out the commission at the highest band.
In general terms, that problem usually applies to companies running their own schemes therefore it’s usually better to sign up by way of one of the affiliate marketing companies such as TradeDoubler or CommissionJunction. They obviously take a slice of the commission that would otherwise go directly to you but at least you avoid the problem of having a series of small payments due yet none of them above the minimum for a payout.
Clearly there are some affiliates who go all-out in their marketing of the products and they do very well as you’d expect but it’s far from the easy job that many people seem to think. For example, even though I run a series of travel accommodation websites and religiously place affiliate links for car rental on pretty much every appropriate spot, in reality I get under $100/year from the affiliate links from those sites.
In fact, car rental doesn’t pay a massive amount (usually around $10/rental) but there are other affiliate links that pay quite substantial chunks of cash. Of those, probably among the most lucrative are house sales and online casinos.
The link on this page probably isn’t a fair test of the affiliate schemes but, on first sight, you’d think that at least some people would click on it and buy something. Frankly, I’d be very surprised if anyone did, but if they do, I’ll update this post. Go on… ruin my day and sign up for an Amex card (free to you, few dollars to me).
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Copyright © 2008 by Arnold Stewart. All rights reserved.