Two of the more popular variations are Two-tier programs and Residual Programs.

In the former, which is similar to Network Marketing ( Multilevel Marketing), in addition to receiving commissions based on their own sales and recruiting actions the affiliate also receives commission which is paid on the activities of those people they originally recruited.

With Residual Programs the affiliates continue to receive commissions from people they have referred to the company site if these people continue to purchase goods/services from the merchant. This is particularly applicable where continuous monthly purchases are made eg a magazine subscription

One of the most important considerations we have left to last. That is how does the affiliate go about getting people to visit their site so that they can link through to the merchant?

The answer is that many of the methods used for advertising on the internet would be appropriate. The subject of advertising is too lengthy to go into here so please see my separate report if you need help.

So, yes, affiliate marketing is very worthwhile if you do it correctly.

The major disadvantage is that YOU are not building a list so that YOU can offer them some different products from alternative sources unless you can capture their email addresses and get permission to contact them further. You are, therefore, always having to find new customers rather than building relationships with existing clients which is the better way to a potential huge business.