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Software vendors have an advantage over other merchants in that new technologies allow software developers to better control compensation.Vendors can 'wrap' their software insuring that their affiliates are compensated for referrals, even if the customer downloads a trial version prior to purchasing.(Ad Sense is an example of PPC affiliate program) Pay Per Sale - this is when the affiliate is compensated by the merchant if the referral generates a sale or purchase.Pay Per Lead - this is when the merchant agrees to pay for a qualified (or sometimes unqualified lead), which is very uncommon because it is subjective and up to the merchant.
Pay Per Click - this is when an affiliate is compensated for sending traffic to the merchant.
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.
It has been my experience, the closer the affiliate site content resembles the merchant products, the higher the likelihood of a good conversion rate.
Once you are committed to the idea of affiliates, the next step is to determine the kind of tracking system you are going to use.