By Stephen Wright

Before you jump into just any affiliate program there are a number of key questions and considerations you should address first. It can be complicated, but armed with some of the more important issues you will be able to avoid the more common pitfalls. So, before you sign up, consider these questions:

The time to ask questions is before you join an affiliate program. Especially, for those that charge fees or other miscellaneous costs. Do a little research about the choices of programs. Will it cost you anything to join? Most affiliate programs being offered today are free of charge. So why settle for those that charge you some dollars before joining, unless there is a crystal clear benefit for the investment.

When do they issue commission checks? Every program is different. Some issue their checks once a month, every quarter, etc. Select the one that is suited to your payment time choice. Many affiliate programs are setting a minimum earned commission amount that an affiliate must meet or exceed in order for their checks to be issued.

What is the hit per sale ratio? This is the average number of hits to a banner or text link it takes to generate a sale based on all affiliate statistics. This factor is extremely important because this will tell you how much traffic you must generate before you can earn a commission from the sale.

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Google’s smart pricing feature automatically adjusts the cost of a keyword-targeted content click. So if our data shows that a click from a content page is less likely to turn into actionable business results - such as online sales, registrations, phone calls, or newsletter signups - we reduce the price you pay for that click.

Some info about smart pricing,

• Smart pricing affects an entire account. It is not on a per page or per site basis.
  One poorly converting site can result in smart pricing impacting an entire account, even sites completely unrelated to the poorly converting one.
• Smart pricing is evaluated each week. So removing ads from sites you suspect are converting poorly could result in seeing an adjustment to a higher smart pricing percent in as little as a week.
• Smart pricing is tracked with a 30 day cookie, so you could be rewarded for new conversions that saw the initial click from your site up to 29 days earlier.
• Image ads are also affected by smart pricing.
• With smart pricing, an advertiser could end up paying less than their minimum bid, which would theoretically include the minimum bid price available, meaning publishers earn less for even the minimum valued clicks.
• Conversions for smart pricing publisher accounts are tracked by those advertisers who have opted into “AdWords Conversion Tracking”

And, here is what Google says,

1. Many factors determine the price of an ad
2. Clickthrough rate doesn’t affect advertiser return on investment (ROI)
3. Google doesn’t make money from ’smart pricing’
4. Remember the old chestnut: “Content is King”
This is found on Adsense blog here

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