Affiliate marketing is another way of raising your internet business to a higher level.

If you have a product that you sell online, then you offer your affiliates – people who refer potential customers for you, and who end up buying your products– a cut of the profit. By paying your affiliates a percentage of the price of the product – anything from 5 to 75% – they will in turn drive massive free traffic to your website.

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Besides driving massive free traffic to your website, running your own affiliate program also has other advantages.

Your affiliates are your sales agents, multiplying your effort in advertising and selling your product. On top of that, you will also be creating massive one-way, targeted links back to your website when your affiliates advertise your product in various places.

To set up your affiliate program, the following must be in place:

1.Software to keep track and manage your affiliates
2.Automated payment to your affiliates
3.Advertising support from you for your affiliates. This can be in the form of banners, email messages, adwords ads, etc.

You can get help from the following sites to set up your affiliate program: clickbank, 2com, paydotcom, cj, bluephoenixnetwork, and others.

There are, however, a few things you need to do if you intent to run your own affiliate program.

First of all, you need to be able to get people interested in your affiliate program so that they can do the selling for you. One way to make your affiliate program attractive is to give your affiliates a higher cut of the proceeds. 50% commission is the standard rate these days for information products that your customers can easily download. If your product is a physical one, it will be a little tough for you to get affiliates to sell your product.

Also, consider giving an affiliate program offering multiple tiers. Residual income is a good way of attracting affiliates.

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