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Be careful that the affiliate's web page is not cluttered with banner ads that may crowd out your link, or that be annoying to customers.Affiliate programs enable affiliates to leverage their traffic and customer base in order to profit from e-commerce while merchants benefit from increased exposure and sales.Understanding Affiliate Programs By Sharon Housley Wednesday, November 10, 2004; pm EST Affiliate programs are commonly misunderstood, in order to understand affiliate programs lets start with terminology.For clarification purposes, an affiliate is defined as any "referrer" or website that promotes a product in an effort to earn revenue.Sales can be tracked by HTML code, which is placed in a shopping cart or on the 'order confirmation'/'thank you' page, and cookies, which are created after the customers click on a banner ad.

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The online merchants sell products, goods and services online.Commissions based on purchases made by traffic sent from the referring website can be paid.Besides a commission, an affiliate can receive a flat fee, or other incentives for all valid transactions it refers that generate a sale or lead.A merchant is defined as someone who owns a product and is sharing revenues with an affiliate based on the affiliate's performance.Affiliate programs can drive targeted traffic to your website.

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