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How Affiliate Programs are Administered?

Fairly simple in theory, affiliate programs do, however, require the employment of daily monitoring activities in order for the affiliates to be properly compensated,.
Depending on the arrangement, someone might need to determine:

  • the number of people who click on the merchant site's link on an affiliate site
  • the number of people who end up buying something or performing some other predetermined action once the affiliate sends them to the merchant site.
  • the number of people who see the merchant site's banner link on an affiliate site
In addition, someone needs to track the original arrangement between the merchant and the affiliate and ensure the affiliate collects the accurate amount of money.

It's a lot of work for merchant Web sites to actively recruit affiliates, and for affiliates to search for affiliate programs in which they are interested. For a lot of web sites, however, their manpower is not terribly vast and not quite capable of tracking every sale. So, rather than pay their on staff to monitor all buying and selling activities, for the time and costs involved, many webmasters simply opt to have the merchant sites tally their bills.
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