Simply put, online affiliate programs enable other websites (affiliates/publishers) to promote your goods and services via the reach of the internet. In effect, an affiliate program is the most cost-effective form of advertising there is, because with a cost-per-sale (CPS) affiliate program, you pay affiliates on a commission basis.

Here's how it works:  An affiliate program can either be a software platform that is integrated into your ecommerce solution, which you yourself can host and manage, or, it can be entirely hosted by a third party network. Prospective affiliates apply to join your affiliate program so they can promote your products and earn commissions when a sale is made through their referral. As a merchant, you have the power to accept or deny affiliate applications, as well as set the percentage amount of the commissions, therefore ensuring you make a profit on every sale. The software program that powers your affiliate program automatically generates unique affiliate identification links for each approved affiliate, thereby tracking when an affiliate sends traffic to your site and whether that traffic converts into a sale or not (via a tracking cookie). When it does, the affiliate software will read the cookie and credit a commission from that sale to that particular affiliate. When each affiliate has generated a minimum amount in commission sales, they are issued a check (either by you or a third-party affiliate network). See the below graphic (courtesy of Post Affiliate Pro Affiliate Program Software).

There are different types of affiliate programs, depending on your budget, needs and functionality of your website. If you are on a very tight budget, don't fret. There are affordable options available.

There are essentially three types of affiliate programs - Affiliate networks (hosted), non-network affiliate programs (hosted), and do-it-yourself affiliate software programs (non-hosted). "Hosted" simply means the affiliate program is operating via third-party Web servers and does not take up your website's own hosting bandwidth on the internet.

AFFILIATE PROGRAM NETWORKS (Hosted)

LinkShare, Commission Junction (CJ) and Google Affiliate Network (formerly Performics) are probably the most recognizable affiliate programs on the Web these days. Catering to large companies with brand-name recognition, these affiliate programs have healthier costs, but also draw in a large number of affiliates to whom your affiliate program is promoted to. Initial deposits usually are no less than $3,000 while start up costs can get higher than $5,000. There are also annual maintenance costs and commission fees. If these numbers are too rich for your businesses blood, there are several other affiliate program networks that draw in thousands of affiliates and cost considerably less. Of these, ShareaSale is the closest thing to, if not better than, LinkShare, Google Affiliate Network and CJ without the healthier costs. As for green business affiliate programs, we see great potential in the Performance-Based affiliate network (see below).

Based on price, hands-off functionality and the quality of merchants/affiliates, our top recommendations are:

Performance-Based,  ShareaSale,  ClixGalore,  Affiliate Shop,

#1 Affiliate Program Network for LOHAS websites

Performance-Based is one of the first affiliate networks dedicated to catering to eco-friendly Web businesses. With a fast growing network of eco-minded affiliates numbering in the tens of thousands, Performance-Based is able to provide very targeted affiliate marketing for niche, green companies. The Network Setup Fee is just $249.95, which is unheard of for a full-solutions, hands-off affiliate network. Merchants need only pay commissions when a sale and/or lead is made. The affiliate payout commission percentage is determined by you ahead of time (it can be modified at a later time if needed) and a 20% cut of the affiliate commission is paid to Performance-Based. For instance, if an affiliate makes a $10 sale on a 10% commission, the merchant would pay $1 to the affiliate and $0.20 to Performance-Based. Again, this is a great deal for small business merchants who neither have the time nor money to host and manage an affiliate program of their own. Additionally, Performance-Based does not charge a monthly minimum fee for the first 120 days of setting up your program. There's only a $24.95 fee per month thereafter.

For merchants looking to save on costs and do not want exposure within the Performance-Based network, the "Independent Connect" option is available with reduced fees. However, it is highly recommended to opt for the "Network Connect" setup, as this gives your affiliate program immediate exposure to thousands of eco affiliates.

Another positive about Performance-Based (from an SEO perspective) is the option of direct linking capabilities for a one-time fee of $29.99. What this means is that instead of randomly coded affiliate links, the backend software will create affiliate links using your website domain in the url, which will aid in search engine rankings.

The affiliate software interface used by Performance-Based is top-of-the-line. Detailed campaign stats, data feeds, file downloads, tracking pixels and creatives (including rotating banner placements) can be accessed and viewed via a highly user-friendly interface. Not only is this an attractive feature for affiliates, it ensures your affiliates have all the tools at their disposal to promote your products as effectively as possible. Furthermore, the fact that Performance-Based is geared toward the LOHAS sector ensures your products will fit well on like-minded affiliate sites also catering to the LOHAS sector.

Good examples of green businesses using Performance-Based are Two Leaves & a Bud, Green America, Hydros Bottle, Earth Divas, Think Pink Ribbon, Great Recycled Gifts, Element Eco Wear, Wabisabi Green, Yes It's Organic, and Geo Life Naturally.

To start your very own affiliate program, Visit Performance-Based

ShareaSale is a very large premiere affiliate program network, with a selective arena of top performing affiliates numbering over 350,000. Outside of the large, costly networks like CJ and GAN, ShareaSale is our #1 recommendation. There are over 2,000 merchants signed up in the network, including clothing, food and health products merchants. In fact, ShareaSale has more "green" eco-friendly merchants than CJ and Linkshare - So much so, they now have a "Green" merchant category for affiliates to search. Web-technical skills are not required to get started, and you can have an affiliate program up and running in a matter of hours. There is a $550 Startup Fee, $100 minimum deposit to be used for paying affiliate commissions (Shareasale processes all payouts), and only a 20% commission laid on top of affiliate commissions (many other networks charge 20%). For example, if an affiliate earns a $1 commission from the merchant, Shareasale takes out an additional $0.20. There is a minimum monthly transaction amount of $25, but not until 120 days after the merchant account is opened. Simply put, Shareasale is one of the most affordable, high-quality affiliate program networks out there. The industry's top affiliates agree that ShareaSale has one of the best reputations in the business. All of the innovative marketing and tracking tools provided by ShareaSale - to merchants and affiliates alike - simply equates into better conversion rates. Shareasale handles all affiliate payouts, trafficking and real-time reporting. A hands-off program, all you have to do is set the amount of commission or flat-rate payout and approve or reject affiliates who apply to your affiliate program over time.

Good examples of green websites using Shareasale are Starwest Botanicals, Frontier Natural Products Co-op, Green Nest, Organic India, The Green Office, Think Host, Our Green House, and Seaside Naturals. This is just a few.

To start your own affiliate program and/or to find out more information, visit ShareaSale

LinkConnector is a fast-growing affiliate network that has earned a reputation for their "one-strike-you-are-out" policy toward fraud. Link Connector has a pool of over 30,000 affiliates, however some 40% of the applications are flagged and denied, ensuring merchant's affiliate programs are ethically promoted. Link Connector provides a customizable report interface, unlimited creatives, affiliate ranking system,  email/newsletter system, and exclusive technologies that help with everything from SEO integration to fraud prevention. There are no setup fees and three management programs: Self-Managed, Co-Managed and Premiere. Self-Managed requires a $400 starting balance (to be used for paying commissions), and there is a $100/month minimum in Link Connector fees after the first month of integration with the network. Link Connector fees are 20% of paid affiliate commissions. For the Co-Manged program, receive a dedicated account representative and additional free services, such as Pending Sale Functionality. A startup balance of $4,000 is required for this level, with a $1,000/month minimum of fees rated at 25% of affiliate commissions. The Premiere program is equivalent to having a dedicated affiliate program manager who will be responsible for all affiliate marketing efforts, and as such, costs more. The Self-managed program is a good start for smaller businesses, and the account can always be upgraded later. Overall, Link Connector is a solid network.

Good examples of LOHAS websites using Link Connector are Buy Green, Baby Because, Paws Choice, Originere, and Sibu. This is just a few.

To start your own affiliate program, visit Link Connector

ClixGalore is a high-tier affiliate program network representing many well-branded clients like Time Life, CitiBank, FoxSports Shop and best of all - Shop Natural (eco-friendly super shop). ClixGalore offers fully managed merchant affiliate programs, and also gives merchants the choice of auto-approving or manually approving affiliates. Some of the features and services you have access to include daily and weekly affiliate recruitment service, dedicated program management, search promotion, program performance statistical reporting, complimentary shopping cart integration, and anti-fraud and geo-traffic filtering (allowing you to choose which countries your affiliate traffic comes from). Affiliates number over 200,000, and have access to website building tools which help to create professionally branded web pages for promoting your products. There are different levels of service with ClixGalore, beginning with the Bronze account which has not setup fees and only requires an initial balance of $75 (used to pay affiliates). The Business package has an annual promotion fee of $275 and requires a $100 balance. The Enterprise Gold package has an annual promotion fee of $375 and requires a $125 balance. The Corporate Platinum affiliate program has an annual promotion service fee of $745 and requires a $250 opening balance. Keep in mind that with the Bronze package (no annual fee), there is no dedicated affiliate recruitment. You will be responsible for ongoing affiliate recruitment, albeit your program will always be available for affiliates to join in the Clix Galore network. The Business package and up does, however, offer dedicated affiliate recruitment.

Commission charges made on affiliate sales are 25% of the commission paid to the affiliate. Therefore, if an affiliate earns a $1 commission, ClixGalore will take $0.25 from the sale. All affiliate programs are promoted within Clix Galore's broad network of affiliates.

If you are seeking a quick traffic pool, the Bronze package makes good sense. However, if you are seeking ongoing exposure to a large network of affiliates, we highly recommend ShareaSale, which despite having a larger setup fee, does not have an annual fee.

A good example of a green website using ClixGalore is Mexitan

To start your own affiliate program and/or to find out more information, visit ClixGalore

Affiliate Shop offers easy-to-use affiliate software that lets you set variable commission rates (with the help of a friendly software wizard), co-brand and customize your sign-up pages, and manually approve affiliate applications. Affiliate Shop handles all commission payouts and tracks affiliate performance. Their network has over 30,000 affiliates, and although this is smaller than some other affiliate program networks out there, it's a good start. If it's good enough to sustain the likes of Mountain Rose Herbs, then it's certainly good enough to sustain a medium to large sized Web business.

Merchants can also opt to not be promoted in the network, which will cost $45 per month, as opposed to $50 per month to be in the network. There is a low $25 sign-up fee, making this one of the most affordable affiliate programs to get started. For only $5 more per month, the in-network package is recommended.

A good example of a green website using Affiliate Shop is MountainRoseHerbs

To start your own affiliate program and/or to find out more information, visit Affiliate Shop

Click Bank is also an affiliate network offering shopping cart options for merchants who have a product to sell yet do not have a shopping cart on their website. With over 100,000 affiliates in the network, ClickBank has become a popular solution for startup sites, eBooks and wholesalers. Although some of the merchant sites in the network are of the "get rich quick" type, Click Bank is a great stepping stone if you are seeking to test the waters of affiliate marketing. eBooks affiliate programs especially do well with ClickBank. Other than a one-time activation charge of $49.95, the only other fees are on sales made through ClickBank's buyers (there are no minimum monthly fees). The charge on these sales is $1 plus 7.5% of the sale price. In other words, ClickBank acts as a wholesaler. If ClickBank affiliates make sales for merchants, ClickBank's commission is based on what the merchant pays the affiliate. All in all, the fee is a quarter of what the above wholesale fee is. Using their fee formula, if an affiliate made a $100 sale for a merchant who pays 33% commissions, the fee to the affiliate would be $33. ClickBank's fee would be $2.32. The lower the affiliate commission, the higher the fee from ClickBank. Although this is a higher commission than other networks, the lack of minimum fees makes up for it. Click Bank handles all affiliate payouts, so all you have to do is process the payment and deliver the product. For merchants who do not have a shopping cart, ClickBank will handle that as well. ClickBank uses fraud prevention protocols, screens affiliates and provides real-time sale tracking reports.

To start your own affiliate program and/or to find out more information, visit Click Bank

***Update, July 2009*** FusionQuest is no longer accepting new merchants into their network. They have merged resources with ShareaSale.

FusionQuest is an ideal affiliate program network for small to mid-sized businesses. You can opt to join their network and have your affiliate program promoted to 51,500 plus affiliates in the FusionQuest affiliate network, or you can promote your program on your own. It makes sense to use FusionQuest's network because there is no extra charge and they only charge a 10% commission on affiliate commissions. That means if you pay a 10% commission to affiliates (which you have the freedom of setting yourself), the payout to the affiliate would be $1, and the payout to FusionQuest would be $0.10. FusionQuest handles all payments, making this a hands-off program. If an affiliate wants to join your affiliate program, but is not a member of FusionQuest, they will have to join FusionQuest first, who will then screen the affiliate. You still have the power or approving and declining applications, thus giving you full control over your affiliates. Fusion Quest integrates with all shopping carts and offers a free shopping cart for websites that do not have eCommerce set up. The cost to get started is either a one-time fee of $695 or a $295 setup fee and $24.95 per month thereafter. Merchants can pay affiliates less than a 10% commission fee, but will not have access to FusionQuest's network of affiliates. No installation is required.

WEB-BASED AFFILIATE PROGRAMS (Hosted)

Another affordable option for a web-based affiliate program, is one that still handles your affiliate tracking and hosting the program on dedicated servers,  but does not promote your affiliate program to a network of affiliates. The following programs all come with no-risk, non-conditional money-back guarantees, and are very popular with small to mid-sized merchants, or those merchants who like to keep their affiliate programs under the radar.

The more affordable options are Interneka and Post Affiliate Pro.

Interneka is an ideal affiliate program for small to medium websites who do not have the hosting server space and/or not keen to pay $500 up front to get an affiliate program up and running. That is, of course, unless you opt to license Interneka's complete affiliate program packaged for a one-time fee of $799. For the base package, however, you can be up and running for $75 and $29/month thereafter.

Interneka is one of the most popular third-party tracking solutions out there. There is no software installation required by you, and the program is fully customizable, including eight different affiliate payment methods to choose from. Interneka gives merchants the power to regulate their affiliates, increase link popularity and also prepares real time reports on affiliate performance. Interneka Customer Support is available 24/7 and the affiliate program is free to use for a no-risk fourteen day trial period.

There are three different bundles of the hosting solution - the standard version costing $75 to set up and a monthly maintenance fee of $29. A premiere solution costs a one time fee of $799 with no monthly charges thereafter. Interneka does not charge commissions.

To start your own affiliate program and/or to find out more information, visit Interneka

Post Affiliate Pro offers an affordable non-network affiliate program with many features, including both hosted and non-hosted packages.

Affiliate programs hosted on Post Affiliate Pro's servers, cost as little as $19 per month, including a multi-tier "Lite bundle" affiliate program that will track up to 500,000 transactions every month. For $10 more per month, the same package can be upgraded to the Pro bundle, which covers 1,000,000 transactions per month and includes added controls and benefits, such as automatic statistic reports and the capability to customize commissions for individual affiliates.

For affiliate programs hosted on your own website's servers (installation included), leased licenses are available for as little as $119 per year and owned licenses can be purchased for a one-time fee of $199 - a tremendous value. Advanced features, which include commission groups (setting different commissions for different affiliates), Recurring payment commissions (on monthly orders/service fees), Action Commissions beyond cost-per-sale (downloads, registrations etc.), CPM commissions (cost per million impressions), private campaigns and performance awards (increased commissions for increased sales).

To start your own affiliate program and/or to find out more information, visit Post Affiliate Pro
 

1ShoppingCart and  Quick Pay Pro (reviewed below) are merchant bundle software platforms, which essentially means they offer full web merchant solutions including shopping carts, credit card processing, etc. As such, the monthly fees are generally a little higher, but worth the cost if your site is getting traffic, but has no way of converting that traffic into sales.

1ShoppingCart is more than just a Web-hosted affiliate program. They provide essentially everything a Web business could possibly need, including payment processing, ad tracking, recurring billing, shipping cost calculations, product support and auto-responders. Their core service is shopping cart integration. If you don't sign up with them, you will at least get educated after visiting their website. It is full of comprehensible and informative information for Web businesses. 1ShoppingCart offers several packages, with the max package including affiliate software costing $79 per month. There are no set-up fees.

To start your own affiliate program and/or to find out more information, visit 1ShoppingCart

Quick Pay Pro - Another PayPal compatible web-based affiliate program, Quick Pay Pro is an all-in-one merchant  bundle that has a 30 day no risk 100% money-back-guarantee. Quick Pay Pro is ideal for businesses who do not have a shopping cart on their website yet...simply because Quick Pay Pro comes with one that can handle real-time credit card processing. It also comes with a hands-free affiliate program system with real-time statistic reporting and ad tracking. A "dummy-proof" installation wizard guides you in setting up your account, and you are also given unlimited support through your online account. Quick Pay Pro promises setup to be as easy as adding a button to your website. There is no startup cost and the monthly fee is $99 or $997 per year.

To start your own affiliate program and/or to find out more information, visit Quick Pay Pro

AFFILIATE PROGRAM SOFTWARE (Host your own program)

Do-it-yourself affiliate programs are software bundles or CGI scripts that you of the software seller will install, thereby only requiring a very small startup cost (purchasing the software or script). Setting up your affiliate program is not that complicated of a task, and you could even ask your hosting company if they will install it for you. They may even do it for free - just ask. You could also pay a programmer a small fee to install it as well. As for the maintenance of the affiliate program, that's your responsibility. Here are two excellent software bundles, both of which you can have installed.

Synergyx - The developer of Synergyx, Paul Galloway, calls it "A seamless integration of cutting-edge marketing technology". It is hard to dispute this claim because Synergyx is an "Editor's Choice" by Wilson Internet, and has the customer testimonials to prove it. Although it costs more than some of the other software bundles out there ($2,995), this is more than your standard software platform. Synergyx is a complete eCommerce software package with a centralized product manager and personalized shopping cart that has real-time credit card processing, and automated tax and shipping. Synergyx provides an affiliate program with two-tier capabilities, multiple commission type settings (flat rate, commission percentage. combo, graduated) and several time-saving automation features, including one-touch updates and commission reporting. The price of the software also includes free installation by Mr. Galloway, lifetime technical support and software upgrades. Synergyx is like making the switch from renting and leasing cars to buying a car. If you are serious about starting an affiliate program for you website or websites, Synergyx is one of the best software solutions out there.

To start your own affiliate program and/or to find out more information, visit Synergyx

Ground Break has developed a CGI script written in Perl programming language called Ultimate Affiliate software. Compatible only with Unix servers, the software can be run on Windows XP, but would need some further installations. The cost for the software is only $200, with an additional $100 fee for full installation. The features of Ultimate Affiliate are considerable, including stat tracking, fraud prevention techniques, customizable sign-ups, billing integration, and replicable website building. No risk to try, Ultimate Affiliate comes with a 30-day full refund trial period. Be sure to read minimum site requirements to ensure compatibility.

To start your own affiliate program and/or to find out more information, visit Ground Break

After you start your affiliate program, you may then request to have it listed in our directory so that it can be promoted to quality affiliates. If you are looking to start your own affiliate program, we highly recommend the above-mentioned options, which are all listed according to their start-up/maintenance costs and type of affiliate program.