There are two main ways to direct traffic to an affiliate program through the Yahoo pay per click advertising system. You can send the traffic directly to the merchant's site or you can create a web page where you can capture the visitor’s details before letting them go to the merchant site.

Some argue that sending the customer directly to the merchant site will improve your sales per click ratio. The merchant has spent the time and money developing ad copy that converts into sales. This technique works if you are not interested in building an ongoing relationship with customers and instead want to simply bring buyer and seller together.

When you are using this technique, make sure that you direct the customers toward a relevant page on the merchant's website. If your ad on yahoo pay per click is promoting a free service that they can sign up for, have the ad link directly to the sign-up page and not the homepage of the program.

However, if there is a special affiliate program that you are promoting that focuses on specific products it might be a good idea to set up a separate website. You can direct the customers to a page devoted to those specific products and then link to only the portion of the website that they'd be interested in. The Yahoo pay per click advertising campaign for either approach will be relatively the same.

Using your own web page is a way to take your Yahoo pay per click advertising to the next level. If you've been using yahoo pay per click advertising for some time and have found some profitable campaigns than setting up your own website is the next logical step.

You can set up a page in between the ad and the merchant's page that has a newsletter signup. Give the potential customer a free report related to the affiliate program. You are building a customer list that you can resell to again and again.

If you want to get even more profits from the same niche, you can create your own products for that niche. You've already been doing all the Yahoo pay per click campaigns driving traffic to your website targeted to that niche. It only makes sense to make instant sales by offering your own products on that website.