Whether your website sells products or services, there are several ways you can structure your affiliate program. The most common way is either a cost per sale as commission, that is a set cost for every click, or a cost per lead.
Every time an affiliate sends someone to your website via your ad on their website, a cookie follows them - not of the chocolate chip variety, but of the tracking variety. So if someone makes a purchase from your website, you can track how much they spent, i.e. the cost per sale. Or, if you are using the cost per lead model, the cookie will allow you to determine whether they reached your target page, for example an enquiry form page, successfully.
The standard rate for each lead is between $5 and $35, however some are offered at as little as 50 cents, although I don't think there would be too many affiliates promoting these!
Most of the technical details are taken care of by a third party, who operates as the interface between you and the affiliate promoting your advertising. You will need to set up an account and a budget with the third party and they will take care of confirming that a sale or lead has taken place, paying the affiliate, as well as taking their own cut.
To protect your brand you can write and design the type of ads you want displayed by your affiliates and some programs will also let you approve the types of websites that display your ads. The key to a successful affiliate marketing campaign is flexibility. Amazon gives their affiliates a range of ads to choose from and they even allow them to make up their own ads
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