Since the primary reason why most affiliates are in business is pecuniary, there is a need for the individual marketer to find and sign up with affiliate programs that pay well. Finding such programs is not a difficult task but could make the difference between failure and success in the business of affiliate marketing.
There are many affiliate programs on the internet, but not all are packaged to compensate the affiliate marketer well for their efforts. The onus there rests rests on the marketer to do their homework well before signing up with a merchant to promote the merchant's products. Never the less, it is important also to put certain variables, apart from immediate high returns into consideration before embarking on an affiliate venture. For example, an affiliate program which commission per sale is high may be dealing on a product that is seasonal, a situation which extremely may not be in the marketer's interest. This is because the bulk of the sales would have been made during the period when there is demand for the product after which there may be little or no sales resulting in no income for the marketer. This of course is not good for business.
Generally, affiliate programs that pays high commission are those products which have high profit margin. For instance, information products will likely have higher profit margin than physical products because the cost of production of the former is lower.
There are programs that pay a marketer once for a sale while there are those that pay recurring commission on a sale as long as the customer keeps updating their payments. Both types of programs could pay well. A marketer should weigh his options well before signing up with either. This is because sometimes, a recurring commission could build up fast and become a passive income that provides a sort of financial security even when the marketer is no longer promoting the product actively. This power of leveraging is best put in proper perspective by the marketer.
Furthermore, it is necessary to look at the merchant's antecedents particularly, how long the company has been in the business and what reviews are available about them on the internet. The importance of this can not be over emphasized as it would not be in the marketer's interest to invest time, energy and resources in building a business and end up losing all because the affiliate program failed. This is why it is advisable to promote more than one affiliate program as this will enable the marketer to have more than one source of income.
Affiliate programs that pay well must meet these basic requirements and more before they are deemed fit for an affiliate marketer to cast his lot with them because, on the long run, everyone is in business to succeed and to do so, proper analysis of risks and benefits are necessary.