Although online business can help a company add more gold to its coffers, success stories of companies making it big online are few and far between. This can be attributed to the surge of online business in the past few years: more and more gravel and concrete businesses are taking their goods and services to the World Wide Web, making the Internet a crowded marketplace that is noisy and daunting to businesses that have little or no financial and marketing clout.

With such an entanglement of businesses and advertisements, can there still be a place for small to medium sized businesses online? Affiliate programs seem to offer the answer to this need for businesses to prosper on the Internet. Such programs bring like-minded businesses together, allow each business to promote a main site, and give each business the chance to earn money through different methods, all of them involving referrals.

Although such a scheme may appear like multi-level marketing, an affiliate program is actually a two-tiered business model, where affiliates promote a main site and get paid by the organizers of that site. In multi-level marketing, three or more tiers exist, with businesses on the latest, lowest tiers allow those businesses on the tiers above to earn money. Compared with multi-level marketing, affiliate programs are more laid back and do not require as much aggressive selling.

What affiliate programs do require are well-made advertisements. When you join an affiliate program, you will be required to post advertisements of the main affiliate site on your website. These advertisements are your ticket to commissions. Every time they are refreshed, clicked on, followed, or viewed, you may be given money in return. Every time a customer visits the main site, signs up for a service, or purchases a product, you will receive financial compensation.

All this may make affiliate programs highly lucrative, but there are a few things you have to remember before you join an affiliate program.