There are probably no short amount of people new to web entrepreneurial activities who are wondering just what the difference is between these two ways of making money, or possibly unaware of what affiliate programs are. Herein I will discuss the two by first writing about the difference between them and then by discussing the results of pursuing one or the other.
The basic manner in which they both function is similiar, they both appear on your page and are meant to get the attention of people reading it, more often than not intending to get them to click the links. The difference is simple, though. When a website makes money by using advertisements they are paid to advertise a product, hence are paid based on either how many people click the advertisement or how many people view the page. When a website makes money based on affiliate programs, they are paid based on how many people buy the product in question after linking from their page. This brings up a number of potential issues from a money making approach and from a moral perspective.
The results of using affiliate programs on the whole tends to be better, from my observations, than using advertisements. The affiliate companies tend to pay quite a bit, ranging from $1 per person for signing up with a free account up to figures such as $1000 per person signing up for some paid club, such as a travel club. Clearly when compared to advertising, which would be pushing it to pay $1 for a click, affiliate programs offer the most but there is a cost involved. Morally, affiliate programs are troubling. This applies especially if your website is attempting at all to have some kind of neutrality. Afterall, if I review a product and pan it, then have a link under the review selling the same product with an affiliate link, less people are likely to buy it. Thus, it is in my benefit to positively review it, creating a clear bias. Most sites I have seen with affiliate links go out of their way to try and distort this bias, but it is always there.
Anyway, that is the essentially difference between the two. Affiliate links offer more money, but you have to sell yourself more to get it. The only exception I can see to this whole matter is if you like a product and deliberately seek to get an affiliate link to that very specific product. An example of this is an affiliate link to amazon, advertising a book you like and have reviewed. Still creaties a bit of bias, but perhaps more justifiable.
The basic manner in which they both function is similiar, they both appear on your page and are meant to get the attention of people reading it, more often than not intending to get them to click the links. The difference is simple, though. When a website makes money by using advertisements they are paid to advertise a product, hence are paid based on either how many people click the advertisement or how many people view the page. When a website makes money based on affiliate programs, they are paid based on how many people buy the product in question after linking from their page. This brings up a number of potential issues from a money making approach and from a moral perspective.
The results of using affiliate programs on the whole tends to be better, from my observations, than using advertisements. The affiliate companies tend to pay quite a bit, ranging from $1 per person for signing up with a free account up to figures such as $1000 per person signing up for some paid club, such as a travel club. Clearly when compared to advertising, which would be pushing it to pay $1 for a click, affiliate programs offer the most but there is a cost involved. Morally, affiliate programs are troubling. This applies especially if your website is attempting at all to have some kind of neutrality. Afterall, if I review a product and pan it, then have a link under the review selling the same product with an affiliate link, less people are likely to buy it. Thus, it is in my benefit to positively review it, creating a clear bias. Most sites I have seen with affiliate links go out of their way to try and distort this bias, but it is always there.
Anyway, that is the essentially difference between the two. Affiliate links offer more money, but you have to sell yourself more to get it. The only exception I can see to this whole matter is if you like a product and deliberately seek to get an affiliate link to that very specific product. An example of this is an affiliate link to amazon, advertising a book you like and have reviewed. Still creaties a bit of bias, but perhaps more justifiable.
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