Because theres only so much space on your site, it stands to reason that you want to make the most of merchant links and banners. But is it always best to choose the programs with the highest percentage commissions?

Most merchant or advertiser sites will pay you between 15 and 25% for a click-through that results in a sale or other action, such as a sign-up for a newsletter or the completion of a survey. So, within reason, why shouldnt you evaluate potential merchant partners based on commission percentage?

The most important thing in your affiliate plan is the total amount of commission earned, not the percentages paid by each seller. To do this you need to evaluate merchants or advertisers based upon their appropriateness to your site visitors.

If your site focuses upon young men, 16-22, who enjoy off road motor sports and trips, your best affiliate relationships would likely be those that include vendors of parts and accessories, travel sites that focus on extreme sports and active wilderness vacations, and perhaps motor sports apparel.

The travel sites may only pay you a small percentage commission or flat fee, but a large percentage of your site visitors may be interested in booking a trip.

Information sites for videos, ebooks, dvds and cds usually pay a very high percentage of sales, because an additional sale costs them very little because customers just download and print. But select your media offerings carefully. A book with maps about traveling the Oregon coast may be great, but one on travel tips for parents of teenagers is likely to do poorly, waste the time of your site visitors, and have them wonder if you really know them well. Well chosen apparel sites may do better, even though they offer a lower percentage commission, because more of your visitors will buy and buy repeatedly.

Choose after carefully predicting what they will buy, then track your sales by category and vendor and continue to fine tune. It will be better for the site visitor and for you, the commission earner.