Now that the idea of doing business over the internet has been firmly established, many potential internet businessmen are searching for the best way to do business.

Usually the choice comes down to whether you want to set up your own business and online store, or sign up for an affiliate program.

First of all, let's define what we mean by an affiliate program.

An affiliate program is basically an internet business set up by someone else.

They could be selling physical goods, education, information or any other products that can be sold online.

By signing up as their affiliate, you are helping them promote their business or store.

In return, they will pay you a commission for each sale you bring them. The amount of commission varies between different affiliate programs.

Examples of affiliate programs include Amazon.com and Wordtracker, which you can visit at:http://www.onlinebiz-help.com/links/wordtracker.html

After all, once the newsletter or ebook is created, you do not need to spend any more effort.

When someone buys your ebook, they just download it from your website. If you are selling a physical product, your profit depends on whether you are manufacturing the product yourself, or buying from a wholesaler or dropshipping company.

Your profit in this case could easily be more than 40% or 50%.

So, if you only consider the potential earnings, starting your own business is more lucrative than joining an affiliate program.

2) LOGISTICS

However, money isn't everything (Or so they say).

So how does an affiliate program differ from starting your own online store? Let's start by looking at the potential earnings.

(After all, the main reason everyone wants to start an internet business is for the money).

When you sign up for an affiliate program, you will be paid a commission for each sale you refer to the online store.

This commission can range from 5% to 15% for physical products, and possibly up to 50% or more for virtual products such as subscriptions and ebooks.