Affiliate marketing has been evolving so fast, it’s hard to keep track of what’s in and what’s out. Do you know how most affiliates find and choose their programs? Or if they’re tapping social networking sites like Twitter for increased referrals?

These questions and more were answered in the 2010 Affiliate Summit AffStat report, an annual survey that asks affiliate marketers their preferred methods and strategies for doing business.

By interviewing over 1,150 affiliates, the report reveals the current trends in affiliate marketing. “The research has been designed to increase awareness and foster best practices in the affiliate marketing industry,” says Missy Ward and Shawn Collins, co-founders of Affiliate Summit who publishes the report.

I could have chosen to bombard you with pie charts and statistics from the report. But I summarized the major findings instead and added my own insights as an EpicToon affiliate. Feel free to use this article as a springboard for when you create or update your own business practices.

Start Small then Expand Big
Affiliate marketing is filled with young entrepreneurs. According to the report, more than half of the respondents began their affiliate marketing career within the past four years. A majority are still building their referral empire by promoting only 10 programs or less.

There’s nothing wrong with focusing on just several programs—in fact, it’s advisable if you’re a part-timer or a beginner. You should build these programs first until they earn you a steady flow of income, then that’s the time you can consider expanding your program portfolio.

The 21% of marketers who now promote 51 or more affiliate programs didn’t get there quickly. They pooled their resources and amassed a great deal of expertise in order to maintain such a large number of programs. Work your way up slowly but surely, and in time you’ll find yourself hiring additional staff just to keep up with all the work coming your way.

Negotiate Starting Rates and Payout Frequency
When signing up for an affiliate program, one of the first and most important things to ask is how they plan to pay you. Six out of 10 marketers weigh in on the commission payment policies of a program when deciding whether or not to promote the program—and for good reason. No one wants to work and not get paid well.

You should negotiate starting rates and payout frequency, when possible, before signing with an affiliate program. Most merchants are flexible depending on what your affiliate websites have to offer, so be sure to know what you’re worth. Six out of 10 affiliate marketers were unable to request an increase of commission from an affiliate manager in 2010 so once the commission rates have been set, you’ll find it hard to ask for an increase.

In terms of payout frequency, you should also consider your business needs. Some affiliates require a weekly payout in order to roll their money back into advertising, which will then earn them referral commissions. Basically, it’s a cycle of investment and income. Determine if you need payments weekly or monthly based on business and personal needs, then seek out programs which can deliver on your chosen schedule.

With great commission rates and timely payments, you’ll be motivated to deliver the best results—as I did when I joined the EpicToon affiliate program. (Of course their yearly performance bonus and progressive income scheme makes the deal sweeter on my end.)

Demand Regular Feedback
If you don’t like to get e-mails and update reports about your affiliate programs, then you’re in the vast minority. A paltry 3.8% of affiliate marketers surveyed said they never want to hear from their affiliate managers.

Half of the respondents said they would like to hear from affiliate managers monthly, while 3 out of 10 would like a weekly talk with their managers. Only 1 out of 10 said they wanted a quarterly meeting, which shows the value of feedback when growing your business.

Regular updates from affiliate managers are useful in evaluating your progress and your merchants might have valuable tips that can improve how you market their products or services. But don’t pester them for a daily status report—it’ll waste both your time. It’s better to get a hold of weekly or monthly reports when studying the bigger picture.

An overwhelming number of marketers prefer e-mail as their main contact medium to affiliate managers because it’s the most convenient to use. Telecommuting is becoming an increasing consideration with the worldwide growth of affiliate marketing. Affiliates and affiliate managers may not be based in the same country so email is the most reliable way of exchanging information. You should also explore instant message chats and calls, both mobile and internet, for when direct conversations are needed.

Some friends of mine who read this article said that they have been guilty of veering away from these benchmarks one time or another. You’ll go against the grain, too, when you feel that it’ll bring higher profits or greater efficiency to your business. But just keep these benchmarks for reference, like a trusty compass that leads you back to the right direction.