Affiliate programs are operated by companies that pay you a commission or fixed fee for each person who visits your website and clicks on a special link to their site to make a purchase. Amazon.com created this concept in 1996. Today, their Amazon Associates program has more than one million members worldwide. When someone clicks on your link, you earn up to 10% of the purchase price in referral fees. It’s simple to set up too. All you need to do is fill out their online application. Once approved you simply add links to Amazon’s products to your site. You can review your traffic and earnings reports online and payments are made quarterly.

An online marketplace such as amazon.com is just one example. Hundreds of businesses have affiliate programs in place. In fact, there are a number of sites that are dedicated to showcasing affiliate programs, such as www.affiliateguide.com. Affiliate sites include those that sell flowers, games, magazines, music, travel, computers – you name it. Some even pay you when someone just clicks on your link to their site. Others pay an initial referral fee and residuals for repeat customers. Of course, their goal is to drive more traffic to their site so they are willing to pay others a marketing fee for generating traffic and spurring sales. They get additional revenue and you get a commission. It’s a win-win situation.

The downside of affiliate programs is that the returns can be unpredictable. Unless your site has lots of traffic, the number of click-throughs to the affiliate site and sales generated from that may not be enough to sustain your lifestyle. In addition, people who were on your site and leave to buy something aren’t likely to return.

That said, affiliate programs might be a great secondary source of income for your online business. You can always sign up and offer affiliate program products and links even if you decide to use another one of the strategies listed here.