Related Podcast Link: Listen to Episode 124!

Many of the big boys in the hosting business (and ever a few of the little ones) seem to be rolling out affiliate deals so that you can help them get more clients to host. Now the questions I know a lot of people have are how does this benefit the web host and how does it benefit the web hosting client?

First let me tell you what an affiliate deal is and how it works in web hosting. You see you have a web host and you have a hosting client. The hosting client usually puts a link on his web site or is given some sort of tracking code so that when he suggests to his viewers or buddies to sign up with the web host, he gets some cash back.

What is in it for the web host?

So what does the web host get out of this? The web host in question gets a new client, which in the short term might be a loss because they had to pay out a little to get him, but in the long term will end up being a success because the new client will be paying in each time to the web host when the billing comes up again.

To a web host, the most important thing is to bring in new clients and that is what the end user has just helped with.

Are customers making money with these deals?

Is there really money to be made by the end user? You can kind of think of this as bounty hunting – but everybody has the same bounty on their heads. Wanted, new clients – dead or alive doesn’t sound too “PR friendly” but in all honesty this is what is going on. Some other web hosts let you credit the affiliates you bring in to your current hosting account too. So say you bring in Billy, Bob and Frank that would be three months off your hosting bill.

All in all, I’d say it is worth looking into if you think you can persuade enough people to come make the jump and sign up with the web hosting company you are pimping out. The more sign ups you get – the more money there is to be made. These days web hosts are happy to get clients by any means necessary. So if that means shaving some of their income off so you get a perk or two, then that is a worthy trade off for them.