Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Types of Compensation and other Affiliate Marketing topics.
Profit sharing is another term for affiliate, associate, referral, or partner programs. Basically, a web site that sells goods online agrees to share their profits with other web sites that sends customers their way. When a visitor from one web site clicks on a link that takes them to the merchant site and then buys something, the merchant site pays a commission to the referring site.
*There are a variety of profit sharing plans online. Before signing up for one, make sure you understand when and how you'll get paid.