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Contents
Overview 1
An Introduction to Affiliate Programs 2
Terms Associated with Affiliate Programs 4
Using Microsoft bCentral Services as an
Affiliate Partner 5
Using Microsoft bCentral Services as an
Advertiser 11
Creating an Affiliate Program 12
Managing an Affiliate Program 13
Viewing and Interpreting Reports
Generated by ClickTrade 18
Review 19

Module 8: Setting Up
Affiliate Programs


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otherwise noted.

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Module 8: Setting Up Affiliate Programs iii


Instructor Notes
This module introduces students to affiliate programs and explains how these
programs help in promoting e-commerce Web sites. The module then describes
how to use an affiliate program as both a partner and an advertiser. These
concepts are presented in relation to the ClickTrade Advertiser service of
Microsoft
®
bCentral

.
After completing this module, students will be able to:
!
Identify the benefits of affiliate programs.
!
Identify the points that a potential affiliate partner should consider when
assessing an affiliate program.
!

Sign up as an affiliate partner by using the ClickTrade Advertiser service.
!
Join an affiliate program by using ClickTrade.
!
Create and manage an affiliate program.
!
View and interpret reports generated by ClickTrade.

Materials and Preparation
This section provides the materials and preparation tasks that you need to teach
this module.
Required Materials
To teach this module, you need the following materials:
!
Microsoft PowerPoint
®
file 1933A_08.ppt
!
Module 8, “Setting Up Affiliate Programs”

Preparation Tasks
To prepare for this module, you should:
!
Read all of the materials for this module.

Presentation:
80 Minutes

Lab:
00 Minutes

iv Module 8: Setting Up Affiliate Programs


Module Strategy
Use the following strategies to present this module:
!
An Introduction to Affiliate Programs
Explain the various terms and concepts described in the module with
reference to the Mightyflight Toys case study.
!
Terms Associated with Affiliate Programs
Provide brief definitions of some of the terms that are associated with
affiliate programs, and mention that these terms will be used frequently in
the remaining sections of this module.
!
Using Microsoft bCentral Services as an Affiliate Partner
Emphasize the points that a potential affiliate partner should consider when
assessing an affiliate program. Demonstrate the procedure for signing up as
an affiliate and joining an affiliate program. Then, demonstrate the use of
ClickTrade in managing an affiliate account.
!
Using Microsoft bCentral Services as an Advertiser
When beginning this section, remind the students that you had previously
discussed how Web site owners can use ClickTrade to advertise other Web
sites. Now you will discuss how owners of Web sites can use ClickTrade to
create programs that help advertise their own sites.
!
Creating an Affiliate Program
Because creating an affiliate program requires you to make a deposit of
$500 through your credit card, you will not be able to demonstrate the

procedure in this topic. Instead, use the slide to give students information
about the details that a user needs to provide when creating an affiliate
program.
!
Managing an Affiliate Program
Explain the need for managing an affiliate program and the tasks involved
in doing so. Because you have not signed up for an affiliate program, you
will not be able to demonstrate the steps for managing an affiliate program.
Use the slides to provide students with information about the tasks involved
in managing an affiliate program.
!
Viewing and Interpreting Reports Generated by ClickTrade
List the various types of reports and graphs generated by the ClickTrade
service for advertisers.

Module 8: Setting Up Affiliate Programs 1


Overview
!
An Introduction to Affiliate Programs
!
Terms Associated with Affiliate Programs
!
Using Microsoft bCentral Services as an Affiliate Partner
!
Using Microsoft bCentral Services as an Advertiser
!
Creating an Affiliate Program
!

Managing an Affiliate Program
!
Viewing and Interpreting Reports Generated by
ClickTrade


In the previous modules of this course, you learned how the Banner Network
and ListBot e-mail marketing services of Microsoft
®
bCentral

help you to
promote your e-commerce Web site. In addition to banner advertising and
mailing lists, you need to implement affiliate programs as an advertising and
marketing strategy.
Affiliate programs are a powerful tool for reaching new customers and
increasing your revenues. You can use affiliate programs to get other businesses
and Web sites to send you paying customers.
After completing this module, you will be able to:
!
Identify the benefits of affiliate programs.
!
Identify the points that a potential affiliate partner should consider when
assessing an affiliate program.
!
Sign up as an affiliate partner by using the ClickTrade advertiser service.
!
Join an affiliate program by using ClickTrade.
!
Create and manage an affiliate program.

!
View and interpret reports generated by ClickTrade.

Topic Objective
To provide an overview of
the module topics and
objectives.
Lead-in
In this module, you will learn
about the ClickTrade
Advertiser service of
Microsoft bCentral, and how
it helps in managing an
affiliate partner and creating
and managing affiliate
programs.
2 Module 8: Setting Up Affiliate Programs


An Introduction to Affiliate Programs
!
How does an affiliate program work?
!
Who should set up an affiliate program?
!
Who should be an affiliate partner?
!
When should you set up an affiliate program?



An affiliate program is an effective way to encourage other site owners to place
links to your Web site on their sites. You can encourage them to do this by:
!
Paying them a commission on the traffic they generate to your site.
!
Paying them a commission on customer information or direct sales that their
sites help to bring to your site.

How does an affiliate program work?
As a Web site owner, you can launch an affiliate program and invite the owners
of other Web sites to become partners in the program. The sites of your affiliate
partners will display text and image links to your site. When visitors to your
partner sites click these links, they are taken to your site, where they might
browse through your products and services, fill out subscription or feedback
forms, or even purchase your products. In this way, an affiliate program results
in increased business for your site through traffic from an affiliate partner’s site.
For the service that your partners provide, you need to pay them a fixed amount
of money as commission or a percentage of the sales they generate for your site.
This is a win-win partnership because the advertiser receives increased traffic
leading to increased sales revenue, while the partners also obtain increased
revenue in the form of a commission.
For example, consider an affiliate program started by the owner of the e-
commerce Web site for Mightyflight Toys. If another Web site owner becomes
a partner in this affiliate program, that owner’s site will display text or banner
links to the Mightyflight Toys site. Each time a visitor to the partner site links
to the Mightyflight Toys site and places an order, the partner earns a
commission on the sale. Mightyflight Toys gains publicity for its Web site and
revenue from the referred visitor’s order.
Topic Objective
To introduce the concept of

affiliate programs.
Lead-in
An online business can
generate increased revenue
through affiliate programs.
Module 8: Setting Up Affiliate Programs 3


Who should set up an affiliate program?
Any online business owner who wants to boost the site’s popularity and
financial returns can set up an affiliate program. Keep in mind that people who
set up affiliate programs should have a strong financial base so that they can
pay their affiliate partners well and regularly.
Who should be an affiliate partner?
Web site owners who are willing to display links to advertisers’ sites can
become affiliate partners. In return, these partners can earn a commission on
purchases made by the customers they refer to an advertiser’s site, thus adding
to the partner’s monthly revenues.

As an affiliate partner, you are required to place links to the advertiser’s
Web site on your site. For this reason, you may not want to join an affiliate
program operated by one of your competitors.

When should you set up an affiliate program?
Do not set up an affiliate program at the time you create your Web site. You
must wait until after the site has been on the Web for some time, is stable, and
you have at least a few paying customers.
Note
4 Module 8: Setting Up Affiliate Programs



Terms Associated with Affiliate Programs
!
Advertiser
!
Affiliate partners
!
Payout rate
!
Sale event
!
Click event
!
Lead event
!
Pay-per-sale
!
Pay-per-click
!
Pay-per-lead


The following table lists and describes some important terms that are
commonly used in relation to affiliate programs.
Term Description

Advertiser The owner of the online business who creates and launches the
affiliate program.
Affiliate partners Web site owners who include links to the advertiser’s Web site
on their own Web site.

Payout rate The commission amount that the advertiser pays to the affiliate
partners.
Sale event An event that occurs when a customer referral from the affiliate
partner results in a sale on the advertiser’s Web site.
Click event An event that occurs when the advertiser’s site is visited by
someone referred by a link on the affiliate partner’s site.
Lead event An event that occurs when a visitor to the affiliate partner’s
Web site clicks a link to the advertiser’s site and then supplies
contact information to the advertiser. Contact information is
usually collected at the advertiser’s site by means of an e-mail
newsletter subscription form or feedback form.
Pay-per-sale A commission paid by the advertiser to the affiliate partner
when a sale takes place as a result of a referral from the
partner’s site.
Pay-per-click A referral commission paid by the advertiser to the affiliate
partner when a click event takes place as a result of a referral
from the partner’s site.
Pay-per-lead A commission paid by the advertiser to the affiliate partner
when a lead event takes place. You get paid for each visitor
who provides requested information on the advertiser’s site. For
example, you get paid when a visitor fills out a form or
downloads trial software.

Topic Objective
To list and describe the
terms that are commonly
used to describe affiliate
programs.
Lead-in
Before participating in an

affiliate program, you should
be aware of some
commonly used terms and
concepts.
Module 8: Setting Up Affiliate Programs 5


#
##
#

Using Microsoft bCentral Services as an Affiliate
Partner
!
Points to Consider Before Joining an Affiliate Program
!
Services Provided by ClickTrade for Affiliate Partners
!
Joining ClickTrade
!
Joining Affiliate Programs


Microsoft bCentral provides you with a service called the ClickTrade
Advertiser service, which allows you to:
!
Create and manage your own affiliate program.
!
Become a partner in affiliate programs that other Web site owners create by
using ClickTrade.


ClickTrade allows you to create pay-per-lead and pay-per-sale affiliate
programs. All active ClickTrade affiliate programs receive a free listing in the
Revenue Avenue listings directory, a network of more than 110,000 affiliates
who can easily locate and join your affiliate program.
The advantages of ClickTrade are that it is:
!
Easy to use.
ClickTrade handles all sales tracking and time-consuming payments to
affiliates. You do not need to install any software for this.
!
Fast.
The ClickTrade Affiliate Program Wizard assists you in getting an affiliate
program up and running quickly.
!
Effective.
You can gain broad exposure by listing your program in the highly
trafficked Revenue Avenue directory of affiliate programs, offered by
ClickTrade.

Topic Objective
To discuss important points
that should be considered
by a Web site owner who
wants to become an affiliate
partner.
Lead-in
Before you learn how to
create and manage your
own affiliate program as an

advertiser, you need to learn
how to become an affiliate
partner and earn revenue by
using ClickTrade.

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