Everyone from Dell to Priceline are trying to reduce their customer acquisition costs with affiliate programs. Instead of paying for the ad, you pay for the results generated like sales and clickthroughs. The Web Site markets and the vendor fulfills the sale. By reducing the cost of advertising, affiliate networks are working. Many programs allow affiliates to buy through their links as well, forming buyer s clubs to increase sales.
Many successful companies keep the statistics private to protect their best sellers.
Here s what the best affiliate programs do to succeed. His CPM was higher than a banner ad would have generated. Remember, this was just one affiliate. The affiliate product is a lead item for Web hosting and e-business services. The power is in the lead product.