Mathematics is equally important in affiliate programs on the Web today. This article will give you some insight to analyzing affiliate programs also known as reseller programs, associate programs… to determine if they are correct for you and your site.

In the past, many have already mentioned choosing an affiliate program that targets your sites existing audience. This is fact!

On the other hand, many times over, we hear do not choose a program that pays only 10% - 15% commissions. Do not choose low cost products/services. The list of "Do and Don't" has grown and been repeated due to repetition of the originators. One thing our great predecessor proved is Mathematics is a constant and precise.

Let me begin with two examples to help us comprehend this a little better.

Example A:

A book that is selling for $40.00 and offers a 25% commission structure. Sounds great and could produce a handsome second income if the book itself is well written and offers a wealth of information. Once the book is sold, there has to be a backend product to bring that satisfied customer back in order for any hopes of a second sale. On the same token, the customer would have to thoroughly enjoy the book in order to return.

Do not get me wrong, I am knocking this sort of affiliate program for I myself belong to some.

Example B:

An affiliate program offering domain registrations. There are several popping up on the Web, however I will use one being the mathematical equation for this program has a much greater value on the other side of the equal's sign. For further information on this program visit: Order Your Domains

Now this program offers a two-tier structure paying 10% on one's own direct sales as well as 5% commissions on one's direct down line sales.

On a five-year domain registration the customer pays $55.00 so commissions on level one would be $5.50 while also paying $2.75 on the second level.

OK, now let's compare the two. The book offers a product that is purchased of a "want basis" while domains are registered on a "need basis". This is also referred to as demand!

The book is more focussed towards individuals. Domains are focussed on individuals as well as business to business. This is very important since it is fact the majority of e-commerce transactions are business to business as well as future predictions show this will be the continuing trend.

At this point we can see that domains are an easier sale for the potential market is better as well the demand.

A low number to use for domain sales would be 14 domain registrations per week or just two domains per day. This would be a low number for our business does quite a bit more already! If you and only ten people in your downline each sell 14 domains a week, your commissions would be $462.00 weekly or $24,024.00 per year!

To make the same commissions selling the above book, one would need to sell 2,402.4 copies a year, 46.2 copies a week or 5.133 copies every day. This equates to having to sell two and a half times the number of books in which the demand for the product is less.

Now picture this, this same domain affiliate program pays you a residual commission. In two years when the owners renew their domain names, you and your downline again receive your respective commissions of 10% and 5%. Sure a percentage will not renew but a larger percentage will (latest statistics, 86.4% will renew their domains). Add that to your growing sales for the same year… I believe you see the picture now.

Which program from the above examples would you rather participate? Is a program offering 10%-15% commissions something to avoid? Fact is some of these programs such as the domain affiliate program can equal more profits for you!

Look to see what the supply and demand are for the particular product/service. What makes a product/service unique. One should look at each program individually for the formula may work for a particular program, but may not for another.

Thoroughly do your math before deciding for yourself!