Google has just put into beta a program which would allow advertisers to pay affiliates depending on what actions are performed on their website by users once they reach your site.  For example, signing up for a newsletter or filling out a contact form would generate one rate of payment, while purchasing a product or opening an account would generate a different payout.The new program is being tested out in Google’s current affiliate programs AdWords and AdSense.  A text link format, in which advertising words are incorporated into the text on the page, is also being tested out as part of the program.  This would allow bloggers to place ads on their page without having to place banner ads or the like.  This practice has already proved to be a very effective money-maker for bloggers using a system called contextual linking, a service run by the V7 web network.

The advantage of this system, from the customers point of view, is that payouts are not made based on click-throughs, but on actions taken once on the site, or conversions.  This allows advertisers to maximize visibility while minimizing payout.  This is just one more example of Google’s cancer like growth into all areas of the internet.  How this will effect currently running affiliate programs remains to be seen, will Google gobble up the competition yet again?