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with their cash compared to a $500 product, 15 of your affiliates refer 15 members each that just happen to stay with you for a year. That's a miniscule $300 extra per week. Now some might see that as not worth it, but let's add that up, $16,200 per year. It looks a better now. I could buy myself a juicy 64" plasma screen or 6 brand new top of the range computers. What would you spend an extra $16k on? Not a bad little earner for something that originally took your profit per sale down to a measly $6, especially when you take these very modest figures and spread them over several products.

? I think this is where the whole affiliate program is a bad thing and cut profits state of mind comes in, but that's not the case. A sale by an affiliate earning 60% doesn't cut your profits by 60%, instead it's a gain of 40% on a sale you may not have made in the first place. This is my personal reasoning for not being worried about setting higher than average commissions (60% and upwards). The potential for this is huge.

? The one thing that I do want to show you right away, before we start talking about response rates and the like, is that building affiliates is not an overnight thing. It's like list building, the more products you launch, and promote, the more Jv's will come your way, and in turn the more people will join your list and your affiliate program. Don't fret though, just because it won't happen overnight, you'll see later, that it can take just a few weeks.

? Let's look at some of the nuances an specifics of actually running your affiliate program now, beginning with the forefront of your affiliate system, your commissions.

? Your first option when setting up your system, will likely be how much do I grant in commissions and on how many levels? The answer in itself really isn't all as complex as it might seem.

? The first thing you need to do is look at things from an affiliate's point of view. We've been spoiled lately with commissions as high as 80/90 even a hundred percent for single month in quick start bonuses.

? Taking this into account, your commissions on the first level should be at the absolute bare minimum 40%. Anything less and you won't attract the numbers or the quality in your affiliates. You should think of 50-55%% as an average nowadays with anything above that, above average.

? Next up, level two. The all important second level, an important aspect from your affiliates point of view, due to this providing them with a reoccurring passive income, where the people they refer, refer others, and they earn on this.

? I know people who won't even promote affiliate programs unless they have a second level up there (very important to keep this in mind), so a second level commissions is a must. Use your discretion, and remember whilst you're selecting your levels and commissions to look at things as if you were promoting your stuff as an affiliate. If it doesn't look like an attractive deal to you, it probably won't to anyone else either, and you need to improve that before launching.

? There can, however, be times when 40% commissions and a second level commission may not be viable for tangible products for example, or if you have high per product production

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