Affiliate programs are important to membership sites for a number of good reasons. An affiliate program isn't really a program. It's a business arrangement.
Affiliate programs are also known as associate programs, associates programs, referral programs and even bounty programs. Most affiliate programs are free to join. Affiliate programs are a way to earn money without producing your own product.
Affiliate programs allow a membership website to generate additional (other than the membership subscription) income by advertising products that are relevant to the site's theme. For example, lets say you own a membership website whose theme is golf. You would recommend products that you like yourself like golf books, magazines, videos and golfing gear. When you have an affiliate agreement with the merchants selling those products, they provide you with affiliate links which you paste into your site. Then when members click on those links and buy those products, you earn a commission. Affiliates programs can earn commissions in three ways: per click, per sale and per lead.
The members on a membership website are helped by the affiliate programs as well. They are given easy access to products that they would otherwise have to search the internet to find.
On the other side of the aisle, you can let other companies post your ad on their sites and pay commissions for sales of your product or memberships. Sure, you may give away 10 percent of your profit to an affiliate; but 90 percent of something is better than 100 percent of nothing. You'll make up in sales quantity what you may lose in percentage of your own net. It's quite worthwhile in the long run.
Use your e-zine to advertise your affiliate program. Always encourage your newsletter subscribers to forward the newsletter to a friend.
People are willing to pay for online content. In fact, the "Online Publishers Association" said that pay-for content is emerging as a hot revenue model. Business content, personals/match making, and entertainment are the hottest niches. But even smaller niches, like DVD authoring, sports coaching, marketing services, and dieting are producing profits.
You can sell subscriptions for online content with your own membership site? Selling online content by way of a password protected website has become big business. Not only is it fast to set up, but the start-up and running costs are minimal. Work from home entrepreneurs and big businesses alike are tapping into this new-found revenue source.
Less than nine percent of online users currently pay for online content. This means the market is wide open for the savvy entrepreneur. Paying for content in 2004 was more than 5 times what it was in 2005. That's a whopping 500% growth! Those who capture the market first in their niche will have the obvious advantage and it's an international market, so anyone can play.
One of the great things about starting a membership site is you can take your hobby, specialized knowledge or profession and turn it into a profitable business. Your challenge will be finding exclusive content. You can start it part time but it will likely develop into a full time business.
Planning for and setting your site up for autoresponders, automated sign-ups, credit card processing, automated cancellations, etc is all part of a successful membership website. Starting and running a membership site can be a lot of fun and very exciting, however you need to know what's involved in setting one up, and then managing it effectively.
This whole process can seem a bit daunting. However, as complex as this seems, many companies offer a low cost, easy-to-use software solution. This makes it possible for almost anyone to start and market a membership site at a very low cost.