For merchants an affiliate marketing program may look like an attractive way to make sales without having to pay upfront for advertising or salespeople. You can create a sales force of almost any size, and commissions are paid only when sales are made.

What should merchants do to make the most of their affiliate programs? Look carefully at the affiliates who apply to your program. They should offer something that you dont that will positively dispose the site visitor to buy from you. Articles, product reviews, blogs and newsletters are some of the value adds you should expect an affiliate site to have. Review the products the proposed affiliate sells, and be sure that you arent competitors, or youll do a lot of set-up work and you wont see the sales.

Review the affiliate sites subject and environment. Is it a quality site with subject matter that is in line with the products you sell? Ask for site metrics, including the number of visits over a specific period of time, and any other information such as income and education that will help you decide if their visitors will logically convert to qualified buyers.

Once youve signed on an affiliate, review their progress regularly. Get to know your top affiliates, and offer them benefits such as a special status designation for their website, and a higher commission percentage. You dont want to find out too late that theyd hoped for this, but got it from one of your competitors.

Be sure the affiliates understand payment practices and timing. Theyre in this for the money and misunderstandings could turn off a potentially profitable program just as it was beginning to ramp up.

Keep on the lookout for innovative new sites, and invite them to join your program before your competitors do.