Affiliate Marketing Is Simple – You Make Money Selling Other People’s Products & Services.
A lot of people are getting into online businesses and choosing affiliate marketing as a vehicle to supplement their “real world” income or even make it their primary source of income.
People like affiliate marketing because they don’t need their own products to get started.
They simply offer products that other people produce, just like most stores do.
Producing their own products can be very expensive, so they choose to promote ready made products. It is like any other offline business. It is not easy. It takes work, but the strategy is so simple a child could do it. In fact many are…
You can reach just about anybody in the world who has internet access if you market your products online. That means a wider and much bigger market for you, which can translate to larger profit potential, especially for information products that can be downloaded digitally.
Setting up an online business requires only a fraction of the cost required to set up an actual business establishment, which means a lot of savings for the business owner.
Affiliate marketing, in its simplest definition, is a relationship between an online merchant or retailer, who has products to sell, and his affiliates, who are willing to promote the merchant’s product on their website for compensation.
In a typical affiliate marketing set up, the merchant provides his affiliates with banners and text ads that links to his site.
The affiliates will then get these ads posted on their website and they get paid whenever traffic or sales is directed to the merchant’s website.
Affiliates are often paid on commission basis, although some merchants opt to pay a fixed fee as the affiliate’s compensation.
Making money with affiliate marketing is a relatively simple process. All that one has to do is to sign up as an affiliate for an company that offers an affiliate program.
An alternative method, and usually the most popular one, is to sign up as a member of an affiliate network—a network that hosts a variety of affiliate programs for different online merchants or retailers. The downside here is that commissions are generally lower.
Sign up is usually free and most companies will provide you with tools and assistance to jumpstart your online business.
When you sign up with an affiliate marketing program, you are will be required to fill out a form containing information about yourself. Some affiliate programs may also require you to present the URL of your website and describe its content.
This will allow the sellers to verify that you actually have a website with content that is relevant to their products, and not damaging to their reputation. After filling out the form and being approved, you are then allowed to choose the affiliate programs you want to promote.
How do you actually make money?
There are actually a number of ways for you to earn money as an affiliate, and most of these ways depends on the type of affiliate marketing program you’ve gotten into. We will just touch lightly on a couple here. Whole books have been written on this subject alone.
Many affiliate marketing programs compensate their affiliates in either of three ways: pay-per-click (PPC), pay-per-sale (PPS), or pay-per-lead (PPL).
In pay-per-click affiliate marketing, the affiliate is paid whenever he directs traffic to the merchant’s site.
PPS and PPL affiliate marketing programs work rather differently.
In PPS, the affiliate only gets paid when his referral converts into an actual sale. In typical PPS affiliate programs, the affiliate would usually get 15% to 50% commission, sometimes more, for each conversion. Programs differ widely.
PPL affiliate programs work the same way, although affiliates are paid a fixed fee whenever his referral converts into a lead for the company.
Some affiliate marketing programs are two-tier programs, where the affiliate is also allowed to recommend other affiliates to the merchant, and be paid a commission.
This is where affiliate marketing other peoples products really gets interesting!
In such affiliate programs, the affiliate would not only be paid for the traffic or sales that he would direct to the merchant’s site but also for the traffic or sales directed by the affiliates who signed up with the program through his recommendation.
Yet another way of earning more profits is through residual affiliate programs like monthly memberships or book and magazine subscriptions
Residual affiliate programs are affiliate programs where the affiliate gets paid a number of times for as long as the merchant keeps the customer the affiliate has referred to his site.
The affiliate could be paid a commission every time the referred customer purchases something on the merchant’s site.
Other residual affiliate programs get the affiliate paid a percentage every month for as long as the company keeps the referred customer.
With a lot of options available and a lot of ways to earn money, affiliate marketing is undoubtedly the most popular and the easiest way to make money by selling other people’s products online.
As to how much money one can get from affiliate marketing actually depends on the affiliate. A dedicated and hardworking affiliate would certainly get more from the program as compared to those affiliates who would simply sign up and spam promotional links.