A business arrangement in which a webmaster pays Internet Marketers a commission for referring buyers to the webmaster’s site and this program is called a referral program which is another name for an affiliate program. In this program an internet marketer usually gets specified commission per sale or referring. It is almost like being a commissioned sales person - online.
For beginners to Internet marketing joining a referral program or two is an excellent opportunity - a way to earn money without producing your own product. Referral programs websites are conduits for receiving website submissions from people or agencies promoting various sites that connect the networks for traffic exchange. Persons submitting the websites have to go through or browse the sites of rest of the members and in this way, they start earning credit points. This facilitates viewing of their sites by other participants or members who are surfing. This creates a cycle and thus the numbers of visitors visiting the sites increases by leaps & bounds. The referral programs also have a system called the credit ratio. This credit ratio implies that a particular surfer must be surfing to receive hits through the program to promote their sites.
Only a small numbers of the exchange programs are not free and they charge fees but also provide some special features to the members. Otherwise most of such programs are free of any charges. In the programs, the users are encouraged to build their own networks and referrals as this helps to increase the amount of credit points.
Use of a down line builder can help the user in building a network of referrals for many different traffic exchanges. This will provide leverage in traffic generation.
Practically, these referral programs are used by marketers & owners of small business who want to carry out advertising free of cost or low budget advertisement campaigns.
As mentioned earlier, these traffic programs are used to increase traffic on their sites by the users. There is provision of both autos surfing with a time limit as mentioned earlier and manual surfing. No human interference is required in case of Auto surf program as it is rotating sites in the database. It is primarily used to increase the total umbers of hits on websites. This seems to be a bit of controversial method as it does not show true picture and the popularity of sites is not projected in true sense. The search engine ranking method is the reason why people choose to use referral programs. More are the visits to the site, higher would be the ranking of the site in search engine but now it is being considered that these techniques are outdated and do not influence SEO & SERP. We need to consider bounce rate which shows people’s interest. Bounce rate is high when people are not interested in the contents of the site. It is calculated by the average rate a user stayed on the site.