Creating an affiliation is very beneficial because what you are doing is establishing an organization in which a person is not just an employee, but also a member. Affiliates are able to access the benefits of the larger company and still act as their own subsidiary. This allows for an easier flow of business. This cuts down time and saves money. You are also able to benefit from the company logo and all it implies. This makes a variety of different services under one logo. It is good for marketing.

Types There are three main types of affiliate programs. Below is a description of each of these three.

Pay per sale: These are nearly always commission based, which means they are based on a percentage of an amount made on a sale. This can be through a website, a meeting, or over the telephone. This is the most commonly used type of affiliation program. This is also sometimes accomplished through the less popular flat fee method.

Pay per lead: This is based on a flat fee. It is less popular because there isn't as much incentive for the affiliate as with the pay per sale method.

Pay per click: This is also based on a flat fee. Usually the person has to navigate through the site before

Tiers There are three different tiers for the affiliate programs. These can be classified as follows.

Single tier: Affiliates are paid on the direct sale referred to the merchant.

Two tier: The affiliate is paid for the direct sale and everyone else the affiliate refers.

Multi tier: Gets paid once for every customer referred and whenever the customer returns and purchases another product. This is known as residual income affiliate marketing.

Affiliates have become a big thing with the Internet because it connects people to the products in a very simple way. Many times meetings can be held in a house, an apartment, or a coffee shop in which an affiliate is able to recruit new affiliates. They can work with each other one on one using the Internet as a tool for learning. Regardless, this system is beneficial. Residual income affiliate marketing is the most profitable and gives the affiliate the most incentive. In business residual income is quite an achievement.

Additional Help For those interested in becoming affiliates there are several companies both big and small who are looking for you. Do your research, ask around, and find what works best. A personal interest in the product or service is a good place to start.

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About the Author

David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com.