And perhaps the most worrisome factor of all...
- "The dark side" of affiliate programs. Is the program really just a way to
legally bribe folks to recommend overpriced, UNDERdelivering products in order
to collect excessive commissions?
Red flags are warning signs...
"Pay-per-click" method of payment. In this method, you get paid
whenever a visitor clicks on your link. No purchase or lead-generation necessary.
Unfortunately, it's wide open for abuse -- very sophisticated folks create
incentives to get thousands of people to click on their links. But the visitors could
care less about the products being promoted. The scam is virtually unstoppable.
And merchants end up paying for nothing.
Sooner or later, merchants seem to throw in the towel against the onslaught. So
be wary -- this kind of affiliate program tends to dissolve or mutate into a different
model.
Multi-tier commission. This is online Multi-Level Marketing (MLM), which is
perfectly legal. Do your due diligence to make sure, of course, that a multi-tier
program is not an illegal pyramid scheme. If the "game" is to earn income by
signing up others, you are most likely dealing with a pyramid. Many people
confuse honest, legal MLM with dishonest, scammy pyramid schemes.
With MLM (also known as Network Marketing), it becomes as important to build a
strong downline as it does to sell product. Also, MLM companies are subject to
numerous regulations (to prevent them from becoming pyramids, basically). Not
all online companies are complying (or even know about this!).
Watch for a big shakeout with many of these companies going belly-up. If multitier
interests you, I would recommend that you check out established offline
MLMs that are now online. Investigate all others extremely carefully before you
decide to invest a lot of time in these.
http://affiliates·sitesell·com/
Poor or little info about affiliate program available. What kind of priority
could it have?
Dead links on merchant site.
No clear anti-spamming policy visible on site.
Site that promotes "get-rich-quick" gimmicks.
Financially unstable. You can lose a lot of momentum if a company goes
under, especially if you are banking on lifetime customer/2-tier promises.
4.2.2. How To Use Alexa.com To
Get the Goods On Merchants
If you haven't used this strategy yet, now is a good time to use it.
Alexa serves as a wonderful final check in two ways...
1) Its stats indicate how successful a program is.
2) The related links suggest good competing merchants.
Check out SiteSell's stats as a trial run...
Search It! > Popularity (STEP 1) > Alexa Ranking (STEP 2) >
sitesell.com (STEP 3)
4.2.3. Prune Possible Partners
By PageRank Score
Google uses the quality (and to some extent, the quantity) of in-pointing links to
measure the importance of a page. The higher the score, the more highly
Google regards the page. A score of 5 or higher indicates a certain degree of
success.
Once again, Search It! pulls in that information conveniently for you.
Search It! > Popularity (STEP 1) > Google PageRank (STEP 2) > domain
name that you are researching (STEP 3)
Great investigation! You've grown and pruned a list of affiliate programs for your
Site Concept. This may well be your main monetization model. Following the
principle of using more than one basket for your eggs, you have spread your
programs among several merchants.
Now diversify further still. Take full advantage of what the Web has to offer by
investigating other potential income streams...
