The old saying in marketing applies to affiliate programs; there are two important keys to any business:

1. Making the right offer, so that it clearly outlines the benefits to the customer

2. Making that offer to the right list, the people who are interested in the product or service.

In this workbook you have identified what you would like to do and the best selling products online. Now is the time to put these two together and select the affiliate programs you would like to offer at your Web Site.

If you are looking to select affiliate programs, there are numerous sites popping up all over the Internet. Many great directories are out there in a market that is fast becoming crowded. Two of the oldest and most reliable Web Sites to look for affiliate programs are:

1. Refer-It, http://www.refer-it.com; they judge the top affiliate programs and rank them.

2. AssociatePrograms, http://www.associateprograms.com, which is run by Allan Gardyne and is a rich resource of information on the subject.

   Before we begin, remember that there are two ways for you to affiliate with these programs:

   A. At your own Web Site, which you update periodically to reflect changes in your product line and marketing;

   B. Via your email/ezine list, which can operate without a Web Site.

You would be surprised how much more effective a good ezine/email list is than a Web Site. Web Sites are important but don't expect your visitors to be so energetic that they seek you out. If you have a Web Site, be sure to capture email addresses of your visitors and remind them to come back.

You will hear this theme throughout this book for a reason; the companies that do well have great email lists. Their customers don't mind hearing from them. Amazon.com has an email mailing list, including sending out to its own affiliates. Xoom.com has built its entire business on email contact, follow up, and sales.

Most affiliate program providers seem to be in love only with banner advertising at your Web Site, which is not necessarily the best way to go. Banner ads get a small amount of traffic and sales generated (see the next chapter for details). Consider this when you are choosing an affiliate program.

 Here are the rules to follow when selecting an affiliate program:

1. Get paid well for whatever you do. Make sure that you have a good selection of products to choose from. If you are selecting more than one affiliate program, make sure they fit together logically, ie, don't sell flowers and hunting gear.

2. Select your affiliate program based on your target audience and your ability to contact them. Be wary of signing up for every program under the sun and hoping that a few will work out. Even though most of them are free, the cost in your time and lost customers is tremendous. Confusing people by posting as many affiliate programs as possible will not work.

3. Make sure that the sign up procedure is easy to fill out. If you find it complicated to begin with, you may find it hard to work with the affiliate provider long term. Also be careful not to pick up an extra workload with an affiliate program. Amazon.com, for instance, insisted that people only promote recommended books at their Web Sites. While the logic is good (an endorsement is much more powerful than simply posting a banner ad at a site), the delivery was flawed. Affiliates wanted an easy way to send traffic to Amazon, even if they got paid less. The result was a growth of this program to include raw links and searches from other Web Sites at a reduced commission.

4. In keeping with this workbook, take time to find the products you would like to offer. Don't sell anything you don't really believe in, or from a company that is not reliable. One bad experience can ruin your customer's opinion of you, even if it is the affiliate company that is the source.

5. Check the way the affiliate program tracks and records your orders. Do they offer you statistics, email notification, and are they good about paying on time? Read about the rules and the system they have set up. Do they offer a third party auditing service? Have people complained about this service?

6. Do they give you the marketing tools to help you sell more? Look for banner ads, free reports, text ads that you can use in an ezine or classified advertisement. The more you have to create, the bigger the burden on you.

   But also keep in mind that if you are really selling well with a company, you should look for innovative ways to incorporate this into your business. Are they willing to go along with your innovation?

7. Finally, make sure that you have some way to generate long term revenue. Few affiliate programs can afford to generate traffic back to your Web Site. Do your best to capture information about your visitors and your buyers. If you find that someone bought via your Web Site, send them a thank you note as well. If you let the affiliate provider do all the work, you will lose a long term customer. Make sure you build your customer list.

Here's a checklist from Refer-It to help guide you along the way.

You can find this updated CheckList at Refer-It, http://www.refer-it.com, the leading search engine for Associate/Affiliate Programs

1. Does the Program allow only certain sites to join (e.g., specific demographics, minimum website traffic, and focus of the site)?

2. How long has the Program been in place?

3. What sites are currently in the Program?

4. What form of compensation is offered - actual cash or only store credit for their product or service?

5. What are the financial terms of the agreement -- a percentage of the transaction or a flat fee? Does it stay the same, or change with the amount of volume you send them?

6. Is there a set-up fee, either in terms of dollars or traffic?

7. How will the referral be tracked? Will a third-party audit it?

8. How is reporting of actual activity done? How often is payment made?

9. Do you get paid on only the first purchase or on every purchase? What if your lead returns to their site later - do you still get paid a fee?

10. How long is the agreement in effect? What is the "out" for both parties?

11. What is your responsibility to promote their product on your site (banners, buttons, links)?

12. Will your visitors find these advertisements valuable or annoying?

13. Are you sure you want to give revenue away to another site? Perhaps you should do your own merchandising. Visit http://www.refer-it.com for more information on setting up your own program.