Why 2% Of The Affiliates Make 98% Of The Sales

by: Charles E. White

Have you ever wondered why most affiliates who promote products don't make a living at what their doing? If you think about it, the answer is quite simple. No real training from someone who has done it before them.

Most new affiliates join a program, download the sales page and put up a few ads and think the traffic is going to flock to their site and that they are going to end up with lots of sales.....and who told them this? The one who made the product or some webmaster who's looking for affiliates.

I hate to be the bearer of bad news but that's just not going to happen. You are 9 times more likely to fail then to succeed if you use those techniques. Yet, that is exactly what the majority of affiliates do and then wonder why they fail.

Here is what you really need to do to become an super-affiliate. First, find the right program to promote. Just because you make 50-75% commission on a sale doesn't mean the product is worth selling. 75% of $0.00 is still 0.00! Find a product or service to promote that actually gives your customer their money's worth and more. If you don't think it's an amazing deal....how will your customer?

Second, learn from someone who has made a comfortable living from affiliate sales to show you the ropes. If they haven't been a successful affiliate of a program, how can they show you how to do it? If they don't know the steps they need to take, then they can't tell you the steps either. The best people to learn from are the "Super-Affiliates". They have been there and done that and know exactly what needs to be done.

Third, make sure the promoter of the program just doesn't want you to join their program to sell you more. For example, once you join their program, is the promoter trying to sell you an isp, web hosting, graphic software and etc? If so, where is their heart? Is it in helping you become a success or in their own interest? While it's ok to "upsell", it's not ok for the program promoter to say you have to buy all this or that to be able to sell their product. If they do, then find another product or service to sell.

Fourth, keep your cost to a minimum. You don't need all those bells and whistles to make money being an affiliate. Keep it simple. Do you know there is an affiliate program out there that can make you money even if you don't have a website, an email list or product of your own right now? That's hard to believe, isn't it? But it's true!

Fifth, how many levels are you getting paid for with your affiliate program? I'm not taking about MLM, I'm talking about...does you affiliate program have ways to make money on the front end, a higher upsell and a way to make money on back-end sales? If not, then you are losing a lot of money that should be yours to keep. Money the program promoter is making and not sharing with you. If that's the case then find another product or service to promote because you are losing the biggest part of your commission.

Sixth, does your affiliate program make you sales on auto-pilot once it is set-up? This is very important as you don't want to waste your time doing the same thing over and over again to make sales. Do you have access to your own proprietary affiliate tools provided by the promoter of your product and if so, does he provide them free? If not, again look elsewhere for a product to promote.

You'll be able to tell if a product promoter is in it just for the money for himself, or whether he is in it for your benefit too. If he is trying to charge you for every little thing, doesn't offer you intense, in-depth detailed training at least at minimal cost, if not free, then more than likely he is after your money whether you make a penny or not.

Find someone who has been a success at affiliate sales and has made a living at it to learn their techniques and to model. Find a great product that you are enthused about and find someone that wants to help YOU and is not just in it for themselves.

About The Author

Charles E. White has been marketing online since 1991. He has done it full-time since 2000. His website caters to new internet marketers and affiliates to help them find the things they need to know to become an online success. His website shows online marketers where they can get the best affiliate program he has found after searching for 14 years and where to get the affiliate training they need to become an online success from a "Super Affiliate". To learn more go to: http://www.internetmoneymakingprograms.com/track/tracker.cgi?articlecity

Writing Your Affiliate Home Business Plan: Who, What, Where, When and Why?

by: Glenn Beach

Here’s a typical scenario: You are deciding to start a home business and suddenly everyone you know has his nose in your business, literally. What do you tell them? And how do you answer your own questions? What should you expect from the company in terms of stability, longevity, vitality, trust, income, and so forth?

First the bad news: there are no guarantees. Then the good news: there is plenty of information from which to draw your own conclusions. The internet is huge, and any good company will offer free marketing tools and training.

But back to the WHY of that business plan. You’re going to be starting small, slow and boy! is there a lot to learn. What’s the point of actually sitting down and writing a business plan? You’re not Bill Gates, this isn’t Microsoft, just you in your home office a few hours a week, slowly building an online business presence, not really understanding what the heck you’ll be doing.

Relax and breathe. Unlike Mt. Rushmore, your plan won’t be designed to withstand the weathering of the ages. You can expect it will change and bend with the flow of your real experiences, which will be totally yours, not identical to anyone else’s.

What writing your plan will do is cause you to pause, think, dream, study and focus. The written document, whether it is one page or twelve, will give your business a framework to work within. The internet is vast and seemingly endless. It is easy to lose focus and drift away on a different whim or idea every day. Understanding where you are today, what tools you have to work with, what your goals are, and how you can best achieve them and measure your success, will help you stay on target and not waste what few hours you may be investing in your business at start-up.

Whenever you feel lost or confused, you can return to what you have written. When you analyze your situation and decide to make a change, rewrite that part of the plan. Understand that it’s a living document, intended to grow with you and your business. Your business plan is your friend.

Getting Started with the Business Plan

First you need to study the company and its management. You need to read and learn about the products, the compensation plan and the network structure. See you next month. Just kidding.

Plan on doing SOME reading each and every work day for the next few months, if not indefinitely. Keep up with the company forum entries every day; read something in the training reports every day. Your education will continue. Plan for it.

When you are ready, open up a Notepad window and answer these questions:

What service/products does your business provide and what needs does it fill?

Who are the potential customers for your product or service and why will they purchase it from you?

How will you reach your potential customers?

Where will you get the financial resources to start your business?

Ok. Maybe your company offers many products and services. What do you want to focus on? I suggest that, at first, you focus on one or two products and/or the affiliate opportunity. In other words, keep is simple. Once you get the hang of what you’re doing, you will KNOW when it’s time to expand. Do only what you are comfortable with, every step of the way. This is YOUR business, it’s your right and privilege to decide on your approach.

Internet marketing hinges on building trust. How will you do this?

Reaching customers means marketing. Your decision, once again. And again, the options should be in your company's training materials.

So we’re talking developing a reading/study schedule. Here’s a possible list, once you’ve read enough to make your own decisions to answer the above questions, start writing. Your writing can be lists of words and phrases, free-form brainstorming, outlines, mind maps, whatever works for you. Just write it down, and don’t forget to save often. If your home office is inhabited by cats or small children, they have the tendency to press on random keyboard keys. Documents do occasionally just disappear. Saving avoids total disaster.

1. Study the products.
2. Read the training materials.
3. Read about commissions, bonuses, etc.
4. Study the marketing aids and strategies
5. Find out what free tools are available.
6. Visit the forums on a regular basis. Read everything about getting started.
7. Ask questions.

Your final written business plan will have at least four parts:

Introduction/background: history of the company and its founder, internet marketing trends, why THIS company and why NOW, and so on.

Goals: I suggest you think of what you would like to be earning in two years, but mainly focus on goals for your first year. Realistic goals can be projected based on info on the company website, in newsletters, searches on the forums, and focused questions to other affiliates.

Marketing plan: based on your answers to the first 3 questions above and your study of marketing aids and tools.

Action plans: the specifics of what you will do on a monthly, weekly, and/or daily basis for the next year.

I can’t tell you what your answers should be, because you have to decide how much money you have to invest. Only you can decide how many hours per day, week or month you can invest in your business. What products you feel most comfortable marketing, and who you decide to target as your customer base, are all decisions only you can make. If you get stuck and don’t understand a question, don’t know where to find information, or don’t know how to ASK a question, contact your sponsor or someone in your upline. If they can't help you, they should be able to send you to someonewho can.

You should NEVER feel alone. Work should be FUN!...

About The Author

Glenn Beach is a home entrepreneur in Nova Scotia, Canada. He has written extensively about affiliate marketing, and sells products that he trusts at: http://www.work-at-home-business-opportunity-canada.com/. Email: begle@work-at-home-business-opportunity-canada.com

Not An Affiliate? Why Ever Not?

by: Marianthi Iatridou

If the idea of pursuing a living on the net has repeatedly crossed your mind but you still haven’t found a way to implement it, then affiliate programs are going to break the ice for you.

Affiliate programs are a lot like learning how to swim in a pool before you go to the open sea. Anyone can try them at least once without having to worry about the consequences.

The good ones are usually safe and do not require a great commitment of time and money from your part. Of course, at this point, some people would argue that this is the exact reason why most people fail. But that’s another issue.

Besides, in many cases, signing up for the right program can be as rewarding as launching your very own enterprise. But above all, it’s a good start.

You see, good affiliate programs are ready to share a wealth of information with you in order to make you successful. They provide resources packed with vital information, give you access to proven online strategies and techniques and teach you how to begin correctly exploiting them. They also save you from making too many mistakes.

Some companies have ongoing seminars that last for months or even longer. The lessons cover all aspects of internet marketing and in your early days as an internet marketer they prove to be part of an invaluable training.

But, in case you’re still wondering what is so great about being an affiliate when there are thousands of them out there, here’s another way to look at things :

1.Each affiliate is unique.

When you sign an agreement with a company to become their affiliate and promote their products you are requested to follow basic guidelines. These primarily deal with things such as privacy, business ethics and general company policy.

Apart from these issues, a company can supply you with resources and business strategies, as mentioned before, but they cannot determine the actions you are going to take in order to promote your business. In a word, you are free to choose any way you like (as long as you’re not breaking any law) to build and promote your business.

If, for instance, you want to use a weblog to talk about your product when no one else in your field is doing it, then you are free to do so. You can use any number of options and techniques to make yourself stand out and draw people to your offer. Again, you and only you get to decide which ones.

2. There is no real conflict of interests.

Now, imagine that you decide to create your business in the real world. Let’s say that you’re opening up a store selling mobile phones and other hi-tech stuff made by a well known company.

Yours, of course, is not the only place in town where you can get these items. You are not an exclusive dealer. Just like an affiliate.

But unlike an affiliate, you have to do everything in your power to make people come to your store and buy from you instead of going to another store that sells exactly the same products.

Why? Because, if you don’t make the sale then there’s absolutely nothing in it for you. Not to mention the cost of running a business which in the offline world can be a nightmare.

I am not saying here, that if you are an affiliate for a company you’ll be making money without making any sales. I am just pointing out that there are great affiliate programs that will reward you with a small amount of extra cash generated by other affiliates.

So, there’s really no reason to get upset when other people make sales. This is good for you too. Think about it for a moment, you could actually be helping others making sales and still help yourself growing revenue at the same time.

3. The more affiliates the better for you.

How do you think your competitors would react to your opening up a new store and tightening the competition? Well, they’re not going to be thrilled, that’s for sure! They have a lot to loose and nothing to gain.

But what about you, the affiliate?

Let’s face it. The internet is a huge place. Credibility and trust are hard to come by and a lot harder to build.

New affiliates being added to a program everyday helps build a reputation. It means that the program works and the company’s plans are sound. (More details on how to choose an affiliate program can be found here : http://www.work-at-home-businessoffer.com/work_at_home_rules.htm )

You could have an unlimited number of affiliates under you or above you and you would all be working to spread the word. Wouldn’t you yourself feel more comfortable signing up for a program that you’ve stumbled upon more than a few times already?

A constantly growing number of affiliate sites stands as proof to potential earnings. They are the best kind of publicity for the company behind them. They benefit and so do you.

So, it all comes down to this : don’t discard affiliate programs so easily when trying to build an online future. They can be an excellent way of earning and learning at the same time.

About The Author

Marianthi Iatridou is the owner and webmaster of http://www.work-at-home-businessoffer.com/ , a site which offers legitimate opportunities to work at home.
editor@work-at-home-businessoffer.com

Secrets of Super Affiliates

by: Ron Pioneer

Have you ever wondered why it is very difficult for you to make a headway in the affiliate marketing game? Why have you signed up for so many programs with so much expectations and yet you have never being able to make a dime out of them all while some people are screaming about them making over $5,000 in the same program you signed for?

These people called "super affiliates" are just ordinary people like you but they do things differently from the rest of the crowd. They see the game from a different angle and they play it with a different strategy. How then do these super affiliates play their game?

The first strategy super affiliates adopt, is that instead of sending traffic to the site of the program/ product they are promoting, send it to theirs. You see, most people advertise their affiliate sites which people will go to and never buy anything.

Super affiliates understand that people are not inclined to buy anything at their first contact with the product, that they will need to be contacted on so many occasions before they can make the precious purchase. Super affiliates use this as an edge over their competitors.

When they drive traffic to their sites, they entice them to join their opt-in list by offering them something "nice" in return. After joining the list, the people can then be advertised to as long as the super affiliates want and so long the subscribers are not complaining.

So, it is very important for you to know that if you want to make it big in the affiliate game, you must have your own opt-in list. Stop spending money to send traffic away, instead bring them to your site and make them join your list by any means, it is very IMPORTANT.

Super affiliates do get to know the product they promote inside out. That is another advantage they exploit over their competitors. They buy the product they want to promote and they digest all the contents of the product so that they will be able to tell their prospects what is in it for them.

How many times have you signed up to promote a product you don't even know about? Do you think if a sales person turns up at your door to tell you of a product, he cannot even tell its usefulness to you, will you buy from such a person? No! That is why some people will not buy whatever you promote, because they don't really know what it will do for them and what it has done for you the promoter.

Get to know what you are promoting so that you can tell your prospects what the product is all about and how it can be of help to them. Your own personal testimonies matters a lot because it is what will motivate them to buy from you.

Another super affiliate's game plan is that they stand out from the crowd.

Hello! How many times have you seen hundreds of people advertising the same product using same banners, classifieds and reports/ articles? If a prospect had seen so many of those at other sites, what gives you the impression that he will buy from you?

Super affiliates understand this, so they write their own classifieds, use their own banners and also write special reports to promote their programs.

Prospects always get drawn to those who are doing something different from the maddening crowd. So if you want to be upgraded to the level of a super affiliate, STAND OUT!

The EXTRA also stands out make one a super affiliate. They add extra(s) to the product they are promoting. People always want to make purchase from those who offered more value for their money.

Let's assume ten affiliates approach you with the same product and nine of them offer the same thing and the last one chose to offer some extra bonuses to the product you are buying at the same amount. Which one will you probably buy from? The last one of course!

You can adopt this method too by offering a free report, course, freebie you got of the Net, an ebook or another product that is what the value of the one you are promoting. You have to offer MORE if you wish to sell MORE.

Lastly another super affiliate game plan I will wan to talk about, is that super affiliates always promote products in their chosen field.

How many times have you promoted some products in a field you don't even know a hoot about? When you promote products in your own niche, you will find out that you will be more enthusiastic about it and even if you have not gone through the product before, you can easily recommend it to people.

The manner you will say something about it will just look as if you have already gone through use the product. Marketing a product in your own niche market, will always give you an added advantage because it is your area of expertise. never bother looking at which area is HOT!

Just check your own niche market out and then promote any product you find adopting all the strategies highlighted above and see what becomes of you. If you happen to be a tennis buff, and you happen to be promoting golf products, which you don't know anything about? :(

What if a prospect decides to ask you a question about golf? :( Do you think you will have anything to say? That is why it is important to stay in your own niche.

I believe you too can become a SUPER affiliate in no mean time, if you will adopt the game plan mentioned above. If others are doing it, why not you?

Never get discouraged by the mistakes of yesterday, look up to tomorrow with bright hope. NOW is the to get started!

About The Author

Ron Pioneer,
Learn the secrets to becoming a super affiliate from my website:
http://www.affila.com/
contact@affila.com

How To Choose An Affiliate Program To Join

by: Gian Luigi Ruggeri

All the internet users related to the netmarketing are often faced with this topic.

There is in fact a huge number of websites that offer affiliate or reseller programs. Which mean rather the same thing, but not exactly. For example it is right to distinguish amongst the two definitions when you join programs that require no payments by you.

How can you find the right programs to join and to profit from amongst all the ones that exist in the Digital Jungle (http://www.NetmarketersHelpCentre.com/thedigitaljungle )? And where?

I will try to answer to this questions, or rather to give some advices. But a first thing important to say in my opinion is that contrary to what you can read in all the pages of the reseller websites around the net, selling online is not really like drinking a glass of water. If you know nothing about online marketing.

And a very important and basic rule of online marketing, that is most worth for the newbies, is that not everyone can sell anything to anyone. It is a very, very useful advice. And it is very, very important to keep it in mind when you start.

So you can understand that is better to chose affiliate programs related to a topic that you know well. But then you must find the right program(s) to join and promote. But they are still a lot amongst which to choose.

They all present themselves as the greatest, quickest and easiest magic online money generator. You still have to make your selection, to find the restricted number of programs to dedicate your efforts.

It is important they meet some basic requirements, but not everybody always pay attention to some details:

• it must be possible, and quite easy, to contact them, online and sometimes offline too (yes, it can happen you will need to make a phone call or send a fax)

• they must accept online payments (they exist different forms to allow customers to pay via the web)

• they must have a sophisticated tracking software and show exactly all the sales and commissions earned by the resellers.

• not always the programs that present the most complicated and attractive commissions structure are the best one to join. Around the net there are super algoritmic matrix programs or infinitive levels downlines; not always they are the best programs available.

You know, these are just the first fundamental points I can give you in this newsletter article.

It could be possible to write pages about the problem of the scams that unfortunately exist on different levels all around the net. But it is not an easy subject to study and report.

There are websites dedicated to that subject, and it is probable that I will add some of the best ones I met in the pages of the NHC, together with a more detailed version of this article.

Websites reporting these bad facts are: http://www.theaffiliatereview.com/ http://homebasedscams.com/

A little tip that I desire to give you, that could help indicate you that something is not working perfectly with an online program is this: if you join a program that seems really easy, start to promote it hard and in many ways but find no results for some time you should start to be worried. If you are sent several emails by the manager telling you the program is going so good, and they add also specially thanks to you, but you have no results, you should worry a little more. If the new mails give you full of tools to promote always harder and better the program, you do it for a period with no results, my advice is you should drop that program.

And now some ideas about where to find good programs to join and promote. There are websites that are rich directories of affiliate and reseller programs, or that directly manage them.

Just some that you can check are:

Clickbank http://hop.clickbank.net/?tdyweb

Commission junction http://cj.com/index.asp?AID=10344&PID=94079

Linkshare Network http://click.linksynergy.com/fs-bin/stat?id=4UTnlz5Umr8&offerid=4240. 2300&subid=0

Or you can find also websites that refer to specific subjects and sectors too.

Very interesting can be to find websites about online marketing, to learn it always better. A good thing is to resell services about this subject, there are plenty.

Ezines and newsletters are another great source in my opinion. Perhaps not all the programs presented in paid ads you can find there, but if you read a very interesting and good article, and at the end it presents a website that offers a reseller program, that could really be a good answer to your search.

About The Author

Written by Gian Luigi Ruggeri © 2001 - All rights reserved
To find other tips, advices, as well as articles, tools and resources to help your net marketing activity
MARKETERS ONLY, The Netmarketers Help Centre
http://netmarketershelpcentre.com/

How To Create Your Own Successful And Profitable Affiliate Program

by: Charles Kangethe

Most of the truly successful marketers have three competitive advantages :

• They run successful Affiliate Programs (Part 1)
• They own large Opt-In Lists and have large traffic (Part 2)
• They create their own products (Part 3)

Step #1 - Three Affiliate Program Opportunities

• Opportunity 1 - Using Own Products and Services

  Combining your own products with a successful Affiliate Program is almost a license to write your own checks.

• Opportunity 2 - Using Resell and Master Rights Products

  Surprisingly, as you will see in step 4, you can create and run an Affiliate Program even if you don't have your own products and services.

• Opportunity 3 - Substitute Joint Ventures

  All successful Affiliate Programs are joint ventures in miniature. Your affiliate partners require as much of your support and commitment as would any JV partners.

Step #2 - The Top Ten Features Of A Good Affiliate Program

1. It delivers consistent sales for Affiliates, by marketing products with high consumer benefits.
2. It operates on a Leveraged I'ncome Pay structure, which extends a number of levels deep.
3. It operates on a Residual I'ncome Pay structure giving Affiliates repeat I'ncome.
4. A good program has high quality marketing tools and incentives for the Affiliates.
5. It pays out big percentages of the sale to the Affiliates and it pays promptly
6. The administration function tracks and corrects affiliate issues quickly, and effectively.
7. A good program trains and supports Affiliates enthusiastically.
8. It offers Affiliates complimentary, high value, front and back end products for promotion.
9. It handles all end customer care issues. 10) A good program constantly tests new ideas to support and strengthen ties with affiliates and end customers alike.

Step #3 - "Own Product Affiliate Program"

Most people join an Affiliate Program on the strength and reliability of its compensation plan.

* Compensation Structure Planning :

• Who can join the program
  Is it open to anyone or just selected, approved partners ?
• Downline matrix structure for Leveraged I'ncome
  How deep is the matrix of downline earnings for Leveraged I'ncome ?
• Residual I'ncome Payments
  Does the program pay Residual I'ncome, on repeat subscriptions for as long as the end customer renews ?
• Minimum Payment amounts, and deadlines.
  Policy on payments, returns and deductions from Affiliate payments must be clear from the beginning.
• Affiliate monitoring of the program
  Affiliates must be able to easily monitor referrals and earnings. Clear and accurate reports to Affiliates should be available online or sent by e-mail.

* Marketing Plans

Develop high quality graphical links that Affiliates can use on their own websites to point to your program. These include

• Web Templates and copy
• Banner Links
• Button Links
• Text Links

Write e-courses coaching your Affiliates on what works best in promoting your products and services.

Do not make the mistake of thinking that when they sign up the whole thing will run on autopilot.

* Legal Issues

Consult professional, qualified lawyers to help you draw up your program terms and conditions before you go to market. The upfront cost involved may save you greater expense in the future.

Step #4 - Resell and Master Rights Product Affiliate Programs

An Affiliate Program without your own products is possible, but use caution - it is less likely to be a huge earner, than one promoting your own stable of products.

Why would anyone join an Affiliate Program to promote a resell or master rights product, that they could buy and sell earning 100% of the profits ?

The answer is reduced effort, time and money.

An Affiliate Program for resell or master rights products saves the affiliate from having to buy, process, add value to and give customer service to the resell rights product.

It becomes an easy I'ncome stream that people may want to join.

The trick in this situation is to

• Spot a product with selling potential, that is relatively scarce and has not been over marketed.
• Create the Affiliate Program where the product owner has failed or is incapable of seeing the market opportunity.

Remember caution - Do not spend huge sums setting up this type of program because the "Return on Investment" is likely to be low.

Step #5 - Mini Joint Venture

JV partners bring "something with them, to the party" - This might be funding, a huge opt-in list, a product or service, or ideas.

Affiliate partners on the other hand, bring only their desire to promote your products and services.

However, the practical day to day administration of the two types of programs is very similar.

For instance:

• You should coach affiliates and JV partners in the best way to market the products.
• You must listen to their issues and deal with them effectively and efficiently
• You must make sure they are happy with the program arrangements, in order that they promote it strongly and join up for future promotions.

JV's and Affiliate programs are different, but only in small details. Treat them with similar care.

Step #6 - Affiliate Program Automation

Quality tools are indispensable for Affiliate Program Automation

• Affiliate Scripts - These are commercially available scripts that allow you to set up programs of various complexity in terms of compensation plans, account management, and program administration.
• Administration Tools - These allow you to see in detail which Affiliates are performing and deserving of more of your effort, time and attention and which ones are not and can therefore be dropped from the program.
• Sequential Autoresponder - Use this to coach and train your Affiliates by sending them regular e-mail.
• VoIP Communicators - These allow you to hold Cheap Live training and support seminars where your Affiliates can virtually attend, see, hear and talk to one another from across the Globe without the need for expensive travel or phone costs.
• Payment Processor - This is the facility by which your Affiliate partners will be paid.
• Product Fulfillment - A successful program will generate many sales and the fulfillment process must be able to cater for the heavy workload.
• Customer Care - The extra sales means that you may need to handle higher levels of end customer issues including returns.

Step #7 - In a Nutshell

This may seem daunting at first reading, but in reality setting up an Affiliate Program is straightforward.

The blue print is :

• Decide on the product type you want to set a program up for.
• Decide on Affiliate entry and acceptance criteria
• Decide on the compensation plan
• Decide on the marketing plan
• Decide the legal structure
• Choose your automation tools
• Market the program
• Train and support your affiliates, especially your winners.
• Don't be afraid to test new ideas

Relevant Resources

Affiliate Program Setup Scripts

• TWSC Affiliate Lite! from http://www.twsc.biz/
• Affiliate Scripts from http://www.affiliate-scripts.com/

Affiliate Program Administration Tools

• AssocTrac from http://shmyl.com/sjm

Sequential Autoresponders

• Getresponse from http://www.getresponse.com/
• Aweber from http://www.aweber.com/

VoIP - Cheap Live Communicators

• http://shmyl.com/agz

Wealth Creation Strategies - F'REE 10 part e-Course

• http://www.simplyeasier.com/wcs

Affiliate Programs - An example Promotion Template

• http://www.simplyeasier.com/client/simplyeasierprofits.html

(c) 2004 Charles Kangethe

About The Author

Charles Kangethe of http://www.simplyeasier.com/ is a leading new wave marketer and a published author from England. The "Simply Easier" brand name is your guarantee of high value, quality Marketing Products, Services and Resources.
charles@simplyeasier.com

7 Questions to Ask A Potential Internet Merchant Account Provider

by: Bobette Kyle

Recently, I went looking for an Internet Merchant Account. My mission was two-fold:

1. Open an account for myself and

2. Research options for my new ecommerce information site Take-Payments-Online.com.

After some research, I thought I'd found an attractive Merchant Account offered through a reputable reseller. As it turns out, I learned the hard way that I was wrong.

Fortunately, my experience can help you avoid the same trap. Based on my own experience, I developed a list of questions to ask a potential merchant account provider. Understanding the answers to these questions before signing an application or agreement will help make for a solid partnership between you and your account provider.

But first, the story:

My Internet Merchant Account Experience

I found what looked to be a competitive Merchant Account offered through a program at a popular reseller. Fees were summarized on the reseller's site and applying was simple. I paid an $89 set-up fee, which took me to an online application I was required to submit to get the process going.

That's when things got interesting. Submitting an application meant agreeing to a previously undisclosed 45 page merchant agreement. An unmentioned termination fee was buried on page 11.

If I ever cancelled the account, I'd be hit with a $295 termination fee. I knew from my research that the large termination fee was not competitive with other merchant accounts and other aspects of the account were not attractive enough to compensate.

Suddenly, this merchant account was not such a good deal.

More critically, however, the termination fee was not disclosed before I was required to pay for set-up. I immediately asked for a refund.

Non-Refundable

Then things got even more interesting. I was told the $89 fee was non-refundable. I'd seen a footnote that the fee was non-refundable, but interpreted it to mean only if they actually did some work and processed an application. I had not completed an application and did not intend to after learning of the extra $295.

Using the email support system so I would have documented proof if I needed it, I insisted on a refund. Still no go.

When I explained there had been no set-up to justify a 'set-up' fee, they responded that the fee was really an 'application' fee - non-refundable, as explained in the footnote on the order page.

Basically, they were telling me I'd paid $89 for a link to an online application, which I had not and did not intend to submit.

Finally, A Refund

I explained I would not take no for an answer. If we couldn't work this out I'd report them to the Better Business Bureau for undisclosed fees, file a complaint with my credit card company, and copy the company president on each. My complaint was sent to the next level.

Finally, after an additional three day wait, the refund was approved.

Avoid An Internet Merchant Account Trap

I made the mistake of taking information at face value and relying on the reseller's good reputation in other areas.

To avoid unpleasant surprises such as mine, insist on all information and agreements up front, before committing to the account or paying initial fees.

Having all of the documentation may not be enough. Be sure you understand all aspects of your Internet Merchant Account agreement as well as fees and equipment required.

If you find incomplete, unclear, or conflicting information, ask questions.

If your sales representative is more interested in getting your signature than helping you understand your commitments, ask for another representative or go elsewhere. There are many, many Internet merchant account options available. You need not be trapped into one that is uncomfortable for you.

Based on my own experience, I developed a list of seven multi-part questions to ask a potential merchant account provider. Before contacting a provider about fees and agreement details, you may also want to familiarize yourself with all of the potential fees associated with an Internet Merchant Account. There is a list here, about half way down the page: http://www.take-payments-online.com/InternetMerchantAccount.html

7 Questions to Ask

Understanding the answers to these questions before signing an application or agreement will help make for a solid partnership between you and your account provider:

1. Can I accept credit cards both online and offline?

Do I need to get separate authorizations or permissions when setting up my account for different types of transaction (Internet, retail, phone orders, etc.)?

What other additional fees are involved if I accept both online and offline credit card charges?

2. Can I accept online payments using methods other than Mastercard and Visa (Discover, American Express, Diner's Club, online checks, debit cards, etc.)?

If so, what are the fees and do I need to do anything to "activate" those payment methods?

3. What are the different discount rates and fees for different types of charges (Internet, in person, telephone, mail, etc.)?

4. What are the other fees related to this account - yearly, set-up, application, monthly minimum, statement, support, cancellation, discount, per-transaction, gateway access fees, card reject fee?

Are these subject to change?

Are there any other fees?

5. Do I process charges manually or automatically?

If manually, is it possible to get automatic processing?

If so, do you provide a secure online payment gateway?

How do I do it and what extra charges will I pay?

6. What other software and services do I need to become fully ecommerce enabled online (such as secure gateway provider, etc.)?

Do you have a list of compatible or preferred providers?

7. Do I need additional hardware or software?

If so, what is the cost and how do I get it?

Ask these questions and establishing a mutually comfortable relationship with your Internet Merchant Account provider from the start. It will help you avoid "traps" and lay the groundwork for a long, solid partnership.

About The Author

Bobette Kyle draws upon 10+ years of Marketing/Executive experience, Marketing MBA, and online marketing research in her writing. Her book, "How Much for Just the Spider? Strategic Web Site Marketing for Small-Budget Businesses", shows how to better find, target, and attract Web customers. Read about it at WebSiteMarketingPlan.com - http://websitemarketingplan.com/.

Copyright 2003 Bobette Kyle. All rights reserved.

Affiliate Income Optimization

by: Sean Burns

In my time researching the search engines, I've noticed something rather strange. Literally millions of searches are made each month for "brand names" and actual site names. For example, on Overture alone, last month, there were millions of queries made for the term "internet explorer". Having been on the internet for around seven years (running sites for over five), I've naturally assumed that people use it the same way I do. So, I know that internet explorer is a Microsoft product so I just type http://www.microsoft.com/ into my browser.

Apparently, that's not what everyone does. Here are some other examples from Overture: eBay - over 7 million searches, Google - over 9 million searches, Amazon - Over 800 thousand searches (OK, lots will be for the river or the forest but still ...), PayPal over 340 thousand searches and so on. Considering that Overture has only about 5% of the search engine market, you can see that there are millions and millions of people who actually use search engines to find sites when they could just type the name in their browser and slap a .com on the end.

Now, on to the good stuff. Of those companies that I mentioned, all but Google have an affiliate program. For example, PayPal pays $5.00 for every person who signs up. 340 000 x $5.00= $1 700 000. Interesting!

So, what can we do to make the most of this opportunity? Well, it's easier than you would think. Obviously, trying to get traffic from people searching for eBay or PayPal would be very difficult but there are literally thousands of other companies that people search for. For example, I just checked the three best known British sports betting companies - about 20 000 searches are made each month on Overture for these companies.

I have noticed that without any effort whatsoever, I am actually getting a lot of traffic from people searching for company names and script names. This is because they are listed in my Affiliate and Script directories. An example of the process is - people search for a particular merchant, come to my affiliate directory and click on the link to get to the merchant. Therefore, even though they have no interest in the affiliate program, I'm making money just by linking to merchants who's content is completely unrelated to mine.

Remember, this is without even trying. When I do try, I'm getting even more traffic. For example, I have a review of the FastClick ad network on my site. I get 10+ visitors each day from people searching for phrases that include the word fastclick. That's 300+ visitors per month, 15 000 per year. As you could imagine, due to the fact that FastClick pay a lifetime 5% commission on referred earnings, this is quite lucrative.

So, what do you need to do? Well, you probably already use affiliate programs in some form on your site - either as a major source of revenue or to make "backend" sales. I went for years just linking to them with banners, buttons and text links. The odd short recommendation here and there proved to be the best way to get the most out of them.

The problem, from a search engine perspective, is that just linking to them from your site will generally not get your page up high in the search engine rankings. A link to merchant "Acme Corp." just blends in to the text on your page and is assigned no real relevance. Therefore, you should put up an individual page on your site for each merchant that you are an affiliate of. This page could just be a review of the products or services that they offer.

Just the fact that you have a content rich page about a specific merchant will almost automatically get you traffic from the search engines (once you are listed). The main point is "content rich". Also, write it yourself, do not copy content from the merchants site. Why? Well, even if they let you copy their content (lots do), Google has ways of finding duplicate content. In fact, they will usually ban the page that they believe is less important if two have the same information on them. So, write it yourself.

Remember that if the merchant sells products that have gained recognition from the public, make sure you list their products.

If you already have a successful site, the search engines will actually view your "review" of a merchant as being important and it is no harder to get that page in to the top 10 listings than it is for any other page on your site.

Often, the difference between doing well and being truly successful online is just the ability to grab opportunities when they appear. You could find that spending just 10 minutes to set up a couple of new pages on your site could actually result in thousands of dollars in extra income each year.

Remember, there are close to 600 million queries made on search engines each day - this is an opportunity! Don't let it pass you by.

About The Author

Sean Burns is the author of the eBook Rankings Revealed which gives you a step by step guide to obtaining top 10 rankings on the major search engines - http://www.webmastersreference.com/rankings_revealed

Affiliate Marketing – My Best Decision

by: Elizabeth McGee

When I decided to quit my job and start an internet business, I was clueless. I researched and found several viable opportunities however the more I read, the more I realized how difficult this was going to be. I did not have a product and was in no position to create one. I had it in my head I wanted to sell something so I started out in the drop shipping business.

I researched wholesalers that were willing to drop ship and found a few. I built a simple yahoo! site, created a merchant account, got my resellers license and voila, I was in business. Did I get a sale? Nope, because I did not know how the internet worked with regards to website marketing. No one could find my site and I was a marketing failure.

Because my site didn’t sell anything, I gave up and continued on the research path. I slowly learned about how to market my site but wasn’t sure I wanted to stick with drop shipping. My site costs combined with credit card merchant costs and plain old competition didn’t really leave me with much profit. I realized I still had much to learn.

I went back to the research drawing board and joined a few forums to learn what else I might be able to do. At that time I learned about affiliate programs. I met people I trusted and admired who promoted affiliate programs. I asked a lot of questions and began my research. Affiliate marketing appealed to me. I didn’t need a merchant account, I didn’t need inventory, I didn’t need my own product and I could even get away without a website. Wow, how good is that? So off I went.

As I began to research I found the best selling products were informational products and the best commissions were internet marketing products. Because I was familiar with setting up a website previously I decided to set up another site to list of all my affiliate sales products. I fell into the trap that most new web business owners fall into. Setting up a ‘How to Market on the internet site’. I liked it because I was familiar with it and I had purchased some of the products through my research. So why not? Well, simply put there is too much competition in that category. I still have my site today but my sales are minimal. I offer only products that I trust and many of them I use but it’s not a business path I’d recommend to someone starting out, particularly because many beginners tend to gravitate there. There are lots of other things that have good marketing potential. Affiliate marketing can be successfully applied to almost any product on the net.

If researched carefully and applied correctly, affiliate sales can be a very profitable internet business. The object is to find something you can sell and promote for merchants that will offer you a commission to sell it. You don’t have to carry inventory, collect money, worry about delivery or even have a website (although a website is a good idea), but you’re going to have to think about what products best suit you with regard to sales. I feel it’s best to sell things that you like. Things you’re interested in or have a fetish about. For instance, let’s say you love crystal. If you love it then you probably know something about it, but more importantly you will enjoy researching it and offering it to someone else.

Next, research web businesses that sell crystal and offer affiliate programs. I recommend using Commission Junction or Linkshare. Keep in mind that the sites you select can sell other things, however you’re focusing on just crystal. Find several sites and apply to them all. Most affiliate programs are free. A note to the wise, be sure to read the affiliate agreements and understand their rules. They are not all the same.

Once you’ve signed up for the programs of your choice, pay per click (PPC) search engines are the best and easiest way to sell your affiliate products. You can promote each product individually or you can promote them all by building a website and promoting your website. Again, be sure to read the agreements as some affiliate programs restrict affiliates offering their competition on the same website. This isn’t true for all of them but you want to stay aware.

To get started you’ll need to set up accounts with PPC search engines such as Google, Overture and Findwhat. Research how they work and set up some simple ad campaigns to start. You will also need to research keywords and what words cost the least and are the most effective. This is a topic for another article, however time spent and proper research tools such as Overture’s view bids and search term suggestion tools will help keep your costs low and your profits high. By the way, use each of the keyword tools provided by each PPC search engine; this will help guide you as to what keywords to use. Keywords entered by users can differ from search engine to search engine.

If you choose to build a website, keep your sight on topic. Getting back to our crystal example, keep your site focused on crystal or glassware, don’t throw in pictures or garden chairs. The worst mistake you can make is being everything to everyone. I know; I’ve made that mistake.

Offer information such as types of types of crystal, how it’s made, textures, weight, where it’s made, history of crystal, etc. Concentrate on offering information. If you give people valuable information on something they’re more likely to buy it.

Of course crystal is just an example; you can apply the same principles to sofas, bicycles, computers, toys or whatever you might take pleasure in. Give it some quality thought, research carefully and take your time. If it’s something you enjoy, you’ll enjoy your business.

About The Author

Elizabeth McGee is the owner of Pro-Marketing-Online, the Expert Marketing Tools site. If you wish to learn more about how to market online from the experts and find expert, trusted tools for promoting your site then please visit Pro-Marketing-Online or subscribe to her newsletter found at http://www.pro-marketing-online.com/ or email Elizabeth at webmaster@pro-marketing-online.com

Affiliate Program As It Should Be

by: Pavel Lenshin

Every off- or online business has a target of growing its market share. Under all other equal conditions the percent of the market, occupied by a company, means certain level of recognition, brand, exposure and, therefore, sales and income.

For small business owner a shift from 0.01% internet market share to 0.04% may result in tremendous four times income growth, the problem is in the limits of resources this particular owner has access to. Usually they are weak enough to allow such expansion at their own cost.

Help may come from two massive marketing instruments: - viral marketing; - business partnership based on outsourcing necessary resources.

Today we are going to speak about latter instrument of gaining exposure you deserve.

Business partnership is an agreement between two or more legal entities to cooperate together in order to reach mutually beneficial results. By extrapolating such statement into a framework of gaining market exposure, we can narrow this meaning down by focusing on uniting promotional efforts for reaching mutually beneficial results.

In practice the owner of affiliate program with the aim of gaining extensive market exposure attracts fellow marketers to promote the owner's(s') product(s) for a reward usually in the form of commission from retail price per sale. A commission for popular info products may vary from 5% to 70%.

Promotional materials (like, endorsement letters, reviews and articles) can greatly assist your partners in promoting your product as highly effective pre-selling tools.

The dilemma of joining affiliate programs

The most common mistake beginners do is registering with all possible and impossible affiliate programs they see in hope to promote them all and collect all the money they were promised to get on the page of respective affiliate program owners.

In dominating majority of cases they end up with wasted time and money. The reason is simple, they don't have necessary resource - a database of consumers, subscribers, business partners - people who may be interested in such type of offers. Instead, those newcomers decide to start their online businesses by promoting other people's products, what is extremely hard, because you will build client database and credibility for the company products of which you promote, not for yourself. The only thing you can do is to grow the subscription database, unfortunately, the most valuable asset - loyal clients - won't be accessible in any case.

Some well-known internet millionaires, making fortunes cross-promoting 3rd party products may truly support the idea of "easy income with affiliate programs", but they tend to forget that all their profits were possible due to huge subscriber databases, thousand of affiliates and customers a newcomer does not have!

That is why start wise by creating your own product, grow your credibility, circle of loyal customers and then join and promote as much 3rd party products as you consider necessary.

Setting up partner program

Every partner program you will create or setup should have, at least, basic must-have features:

1. Database driven registration of affiliates.
2. Tracking affiliate sales in order to count commission.
3. Admin control panel to support affiliates and track their sales.

There are 3 basic methods of having fully functional partner programs application, not going far into science, they are "do it yourself", "setup 3rd party application", "use 3rd party service".

The first method is for those, who are knowledgeable programmers and fortunate enough to invest a lot of time in creating such a solution for personal needs or those, who are lucky to have a lot of money and hire those knowledgeable programmers. Responsibility for taking under control all support and function-related issues would lie on your shoulders.

Setting up 3rd party affiliate program solution requires much less time or money, if any. The result will be the same as above - fully functional partner program and inevitable support problems. The only difference is that you won't be able to develop that partner application the way you need and like.

The main advantage of 3rd party service is the ability to stay unaware of how your partners sign up, track sales, receive checks and so forth, because in this case servicing your partners or affiliates will be the headache of independent company, not yours. For such "reluctance" 3rd party affiliate program provider would charge you on monthly or per sale basis, slightly decreasing your net profit at each sale.

Having your own affiliate program in place enables you to expand your market boundaries exponentially.

About The Author

Pavel Lenshin is a devoted Internet entrepreneur, founder of ASBONE.com, where you can find everything to make your business prosper. Discounted Internet services,
FREE ebooks http://ASBONE.com/ebooks/
FREE reports http://ASBONE.com/reports/
info@asbone.com

Can You Succeed Marketing An Affiliate Based Program?

by: Ian Bosworth

Internet Marketing can be an enjoyable and profitable experience, but it can also be very frustrating, time consuming, money draining and anti social.

So why do we keep putting ourselves through all this pain?

Well, I’m sure that for everyone there is a different answer depending on your driving force, but for me it’s the thought that one day I’ll succeed and make a tidy income. God knows how many ‘Get Rich’ schemes are out there but experience has taught me that 95% of them are simply schemes for making the owner rich and not the affiliate. On the plus side, they do teach you the pitfalls of Internet Marketing and hopefully move you that little further down the line towards your ultimate goal.

You may think that this article is simply a moan about the chaos which is ‘Internet Marketing’ but I assure you that’s not the case. My aim is to pass on the good and bad of this type of venture and to hope that I can help someone to avoid the many obstacles and reach there goal reasonable unscathed.

Can you make money from a program which doesn’t sell a tangible product?

Time and time again you’ll see these type of programs – They’ll say pay $5 as a one off payment and we’ll give you thousands in return. The word that comes to mind is ‘Pyramid’. Logic tells you that $5 can never become $1,000 without you sponsoring thousands of people and then they’ve got to sponsor thousands of people and so on. At some point you run out of people and the system fails. You loose your money but the owner makes a tidy sum. Maybe the answer is to invent your own ‘Get Rich’ scheme but then, how do these people sleep at night?

Personally, these schemes should be outlawed because all they do is serve to undermine the ethics of Internet Marketing.

So, can you make money from these types of programs – My experience tells me ‘No’

Should you avoid them?

Most certainly ‘Yes’

What about programs where you pay a monthly fee but again there isn’t a product?

These are very much the affiliate based programs and do have some merits. They tend to offer the same, old same old, free resource tools, safe lists to join and a type of ad co-op guaranteeing leads and/or sign-ups. Of course, the tools are usually obsolete in today’s market, the safe lists are more geared towards the owner making an advantage by you joining using their affiliate ID and the guaranteed leads are too old to be of any use. I’m sorry for being a cynic but I’m sure there are people out there who are reading this article and nodding there head because they’ve been there.

On the plus side these programs do have a sustainable growth because of the monthly income and so getting personally sponsored affiliates can recoup your loses over time. The problem however, is that people tend to be reticent to join because of the fees and then become despondent when they struggle to get affiliates for themselves. Most of the programs offer free membership and ‘Yes’ you will get tens to hundreds of people joining the free program but the ratio from free to paid is very poor.

People enter these programs believing, that by simply joining, they will be given thousands of Dollars for doing zilch! Like I said these programs do have there merits and if you stick in and spend loads of your money on advertising, hours of your time promoting to rotators and safe lists then you may come out the other side breaking even or with a small profit. Don’t get me wrong I still have some involvement with these types of programs – Why? – Because I believe the hype that I can be the one success story and come out the other side, a rich man!

What about the programs where you pay a monthly fee and promote a product?

If the product is unique in some way, affordable to the masses, useable and needed and you can get in on the ground floor then you could be onto a winner. In my experience, it’s the product which brings in the serious marketer not the affiliate program. Think back to the early days of mobile phones, when they use to be very bulky and expensive and people were saying “They’ll never catch on”

However, the marketer with vision saw the mass potential and stuck in. Oh how I wish I’d been in this game then because now I wouldn’t be here typing this article, I’d be on a beach somewhere and my secretary would be typing this article. There are other types of product based affiliate programs out there which will also give you a chance for success, but finding it is like crawling through a minefield. Don’t simply sign up because it’s free membership or the site looks professional, read all the pages and understand the ethics of the owner. Consider the product(s) on offer and think about your target audience. The product(s) should be affordable, useable, sellable, exciting and hopefully unique in its market. The affiliate program should be affordable and sustainable. Look at the Compensation plan and consider how feasible it will be for you and your potential team, to reach the profit line. Some plans may look impressive but sometimes they dazzle you with big Dollars. Look at the amount of paid sign-ups required together with the percentages paid and compare this to the cost of the program and the cost of advertising needed to reach those required sign-ups. Work out how long it will take you to break even, for instance, if the cost of the program is $20 a month and you spend $20 a month on advertising you may get 1 or 2 sign-ups a month. If the comp plan pays you $5 a sign-up you’ll need 8 sign-ups to break even but it may take you 4 to 8 months to get to that point. So it could cost you between $160 and $320 to get there.

Do your sums or you may never really break even?

You should look at the make-up of the down line and how it fits in with the matrix/comp plan. Some down lines have legs, in that you build so far down and then the line splits off and begins again. This usually happens when you reach another level in the comp plan, but the resulting effect can make it hard to progress to the next level. Some have a straight down line so everyone who joins will be in your line. This can be misleading in that you believe that it’s your sign-up and you’ve earned money.

However, it does allow you to assess the popularity of the program and help you decide if you should continue.

Now Image you’ve come across an affiliate site (Not hard to do with today’s Internet) Ask yourself the following questions:-

Does the site look impressive?

Does it make you want to read on?

Does it have a product that excites you?

Could you use the product?

Could you sell the product?

Would you buy the product?

Is the product affordable?

Do I get the product as part of the affiliate program?

Can I afford the monthly payment?

Do they have a worthwhile Compensation Plan?

Do they have a matrix or a straight down line?

How quickly will I break even?

Can I make a profit?

SO CAN YOU SUCCEED BY MARKETING AN AFFILIATE BASED PROGRAM?

Find today’s ‘Mobile Phone’ with an affordable affiliate program, offering you a good compensation plan, workable matrix and responsive down line and the answer is undoubtedly

‘YES’

Thanks for reading my article. If you want to subscribe to my newsletter then go to

http://www.profitmashine.com/biztipspop.html

About The Author

Ian Bosworth has over 2 years experience in Internet marketing and has put all his ideas and knowhow into his website and newsletter at http://www.profitmashine.com/

Choosing An Internet Merchant Account

by: Andy Quick

Surf to Google and perform a search on "Internet Merchant Account". The results are staggering (472,000 results!) If you have created a web based business and need to accept credit card payments, your choices are limitless. Before you partner with a provider, take time to understand the different components of internet credit card processing, and know what to look for in a merchant provider.

How It Works

Accepting credit card payments through your web site actually requires multiple components. Between a paying customer and your bank account, three layers exist:

Payment Gateway - This is the code that will transmit a customer's order to and from an internet merchant account provider. The payment gateway provides you the ability to accept customer billing information (credit card number, credit card type, expiration date, and payment amount) and the necessary validation steps that must be followed before the credit card is actually billed.

Internet Merchant Account - A Merchant Account is an account with a financial institution or bank, which enables you to accept credit card payments from your clients. The payment gateway actually transmits the billing information to the internet merchant account provider. Unfortunately, most local banks do not provide internet merchant account capability.

The main reason why most local financial institutions or banks do not want to provide online merchant accounts is because transactions conducted over the Internet are totally different from face to face transactions where a signature is required to authorize the purchase. This makes online transactions prone to credit card fraud. Fraud protection should be one of your primary considerations when choosing an internet merchant account provider.

Web Site - Regardless of which merchant provider and gateway service you choose, your web site will need to integrate with your service providers. Most providers include detailed web integration instructions.

How Much Does It Cost

Understanding the total costs of your merchant provider can be tricky. Remember my Google example - there are more merchant account providers than there are people looking for internet merchant accounts so ask questions and be picky! Typically, an internet merchant account will have three types of costs:

• Up Front Application Fees
• On Going Fixed Fee
• Discount Rate
• Fixed Transaction Fee
• Termination Fees
• Miscellaneous Fees

Let us discuss each type of cost:

Up Front Application Fees

Many internet merchant accounts will require an up front application fee. This fee, supposedly, is to cover their costs for processing your application. In case you choose not to open an internet merchant account, they still cover their initial costs. Although common, many providers waive these fees and I recommend that you choose a provider that does not require an up front fee.

On Going Fixed Fee

Most all internet merchant providers require a monthly fixed fee or "statement fee" as it is commonly named, which is simply another way to cover their costs and make money. You will be hard pressed to find a provider that does not require this type of fee on a monthly basis. However, do not choose an internet merchant account that requires more than $10 per month. Additionally, most internet merchant providers require a monthly minimum (usually $25). The bottom line is that you will be paying at least $25 per month (on top of the monthly statement fee) for your account.

Discount Rate

Usually, the discount rate will be between 2 and 4 percent. The discount rate is the sales commission the provider earns on each sale. For example, if the discount rate offered is 3%, and you receive a sale over your web site for $20, you will owe 60 cents to your internet merchant provider.

Fixed Transaction Fee

Usually between $0.20 and $0.30, the fixed transaction fee is the fixed fee portion of each sale. Unlike the discount rate, the fixed transaction fee is the same for every transaction. Whether you get a $1 sale or a $100 sale, the transaction fee will be the same.

Termination Fee

A bit more hidden in the small print, a termination fee can apply if you cancel your merchant account within a specified period of time (usually within one year). But beware, some merchant providers require a three year commitment!

Miscellaneous Fees

If a customer requests a refund and they want their credit card credited, an internet merchant provider will charge you a separate fee (usually between $10 - $20). Read the contract carefully, as other special fees may apply.

Putting It All Together

Now that the different fees have been explained, let us look at an example set of transactions to help understand what an internet merchant account may cost your business on a monthly basis.

I have created a simple formula to help you calculate your monthly charges:

Total Charges = Statement Fee + Number of Transactions x (Average Sale x Discount Rate + Fixed Transaction Fee) + (Number of Chargebacks x Chargeback Fee)

For example, let us see you sell widgets over the internet. The sales price for each widget is $10. You typically have 100 sales per month and about 5 people request refunds (chargebacks). For this example, let us assume you have signed up with Jones&Jones internet merchant account services and have the following terms:

Discount Rate - %2.5
Statement Fee - $10
Fixed Transaction Fee - $0.30
Chargeback Fee - $15

Using my formula above, your monthly Jones&Jones charges will be:

Total Charges = 10 + 100 x (10 x .025 + 0.3) + (5 x 15) = $140

You can calculate your monthly sales revenue by multiplying your sales volume by your price:

Monthly Sales Revenue = 100 x $10 = $1000

Your internet merchant provider is costing you %14 or your total sales.

Making Your Decision

Before you choose and internet merchant provider, understand all of the cost components. Use your current or projected sales data to forecast what your internet merchant account costs will be. Planning ahead can save you time and money.

About The Author

Andy Quick is co-founder of Findmyhosting.com (http://www.findmyhosting.com/), a free web hosting directory offering businesses and consumers a hassle free way to find the right hosting plan for their needs. Feel free to contact Andy at andy@findmyhosting.com in case you have any questions or comments regarding this article.