This is part of Network marketing. To make it simple "Affiliate is share your profit and encourage marketing of your product". Affiliate Program is a best example for win-win situation.

1) What is Affiliate Program?

This is part of Network marketing. To make it simple "Affiliate is share your profit and encourage marketing of your product". Affiliate Program is a best example for win-win situation. Say for example you have a very good product and you want to sell it all over the world. You don’t know each and everyone in this earth and you cannot reach everyone and explain about your product effectively. In affiliate program you can make someone as member of your network and share your profit with him/her. E.g.: for selling of each product through a person X, X will get 15% of the sale or to bring every new customer X will get $2.50 or for every member joining X will get $3.00. Generally this amount will look smaller but considering the network power you can earn huge money. E.g.: in www.website.ws/pys every customer you are getting you will get $1. You will get it for 5 levels. So if you bring 5 customers and if they bring 5 customers each for 5 levels, you will get $3,905/month. Additionally you will get a website and some space to host along with email ids. This gives a good start for your affiliate program.

2) How is it helpful for your home business?
Make sure this is part of your source of income. This gives huge returns. This is a very good option to convert your valuable traffic into money earning option.

3) Leverage Affiliate Program.
You can have Affiliate programs to leverage your product also. You can go for pay per click or pay per sale marketing technique. You have to be very careful and you need to do lots of analysis before spending your hard earned money. Target your ROI (Return over Investment) and try to achieve it. Do the analysis and analyze the trend. Any marketing will reach a saturation period. You should know to find this to spend your money gracefully.

4) PPC, PPL, PPS etc. What does this mean?
PPC - Pay per click: In this you will be getting a pre-defined amount for every click on the link by the user. Performance of this can be measured by amount paid for every 1000 clicks. Generally this will be from $ 0.1 to $0.25 per click

PPL - Pay per Lead: In this you will be provided with a predefined amount for every person filling the application and submits the form to the merchant. Generally this will be around $2 to $5.

PPS - Pay per Sale: In this you will be provided a percentage of every sale you are doing. A good example is www.website.ws/pys you will get $1 for every registration. Here you will get the commission for five levels. I.e. if a person referred by you refers another person you will get $1. This will happen for 5 layers.

5) How they will identify you are referring it?
Generally the URL provided by the merchant will have some additional parameters after the URL. E.g., in www.website.ws/pys you will see pys. This is the key which will be used by the system that you are referring referrer.

Note: Author: Anand. One of the founders of Work from your residence community http://www.res-biz.com. http://www.res-biz.com offers you free registration and space to post your articles and express your ideas in forums. You can reproduce this content provided you maintain the author and the website name.