Tuesday, September 21, 2010

How Affiliate Marketing Works

Affiliate marketing is based on the promotion of e-business where an advertiser seeks to advertise or sell his products through one or more affiliate networks by rewarding them. It is basically a performance based online marketing program in which the merchants pay some commission to the agents, known as affiliates once the customers complete a specific action that was to be done.

Thus in simple terms, Affiliate Marketing may be explained as a tool of making money online whereby you are rewarded for promoting a business by promoting the experience, services, products etc of the advertiser. Commissions mostly depend on the sale of the product, but can also be a fixed pre-decided amount. Compensations are generally based on Pay-per-Visit, Pay-per-Lead or Pay-per-Sale, that is for each visit, a registrant or a commission for each customer or sale respectively.

Through the merchant's perspective, the most attractive point about Affiliate Marketing is that no payment is due to the affiliate till some results are shown. So the advertisers prefer affiliates as a way of promotion because they would need to pay only when the affiliates show some conversion. Through they eyes of an affiliate, it is a great opportunity to earn money online along with the freedom to own his/her business, which is not a very easy thing to do, but gets you real quick money if you handle the things perfectly and put in some effort. So if you are looking for a career while working at home, you can well become an Affiliate.

You as an Internet Marketer can promote other's business by creating your own blogs and commenting on other people's blogs, using social networking sites, making websites that provide information to the consumers and even by making videos and posting them on Youtube. If you go to the bottom of almost any of the websites, you would see a link for the webmasters or the affiliates. By clicking that link, you get in contact with the company and they provide you with a special link which specific to you. When a customer clicks your link and purchases something from that site, you get a percentage or a share of what the company has earned by through that sale. Till date, amazon.com's program has been the largest, there are many more programs though.

Affiliate Marketing is growing at the speed of light as it is a low risk business, still it has sky high potential and profits. It needs very less investment, rather most of the programs are free to join, and gets you high benefits. The good thing about Affiliate Marketing is that you can work at your own pace and will and can have your own space in the way you want to work. You can promote an article as much or as little as you desire. There are no restrictions, it is all up to you.

No comments:

Post a Comment

Share |