Affiliate Marketing - How Does Affiliate Marketing Work

Affiliate marketing is a very popular practice on the Internet. Under this system you have a merchant that is willing to let other people (the affiliates) sell directly or indirectly its products and services, in exchange for a commission. Sometimes this type of advertising is also called CPA (cost per action) or CPL (cost per lead) based.Affiliates can send potential customers to the merchant using several tools, from banners to text links and product reviews.In order to find suitable affiliate programs you can turn to individual companies and publishers like Dreamhost and SEOBook, or join affiliate marketplaces and networks.

   

List of popular affiliate marketplaces and networks:

• Commission Junction
• ClickBank
• Azoogle Ads
• Link Share

How Does Affiliate Marketing Work?

When you join an Affiliate program and choose the products that you want to sell, sellers provide you with a unique affiliate code that you can use to refer traffic to the target site. Most affiliate programs will offer ready made text links, banners and other forms of creative copies whereby you only have to copy the code and place it on your website to start referring traffic. When interested visitors click on these links from your site they get redirected to the product site and if they purchase a product or subscribe to a service you as the referrer make a commission simply ...
The sellers can track your performance through your affiliate ID and the affiliate softwares that they use. You also have complete, real time access to all sales and commissions stats.
You don’t need to sell products all the time to make a commission. Different affiliate programs can use different payment terms such as:

• Pay per Sale: In this program a merchant pays you a percentage of the sale price when the purchase is completed.
• Pay per Click: In this program you get paid based on the number of visitors you redirect to the Merchant’s website from your affiliate site, whether or not a sale is made.
• Pay per Lead: You get paid once the referred visitors provide their contact information on the target site by filling out a simple contact form.

Why be an Affiliate Marketer?

Affiliate marketing is considered to be one of the world’s fastest growing and best internet marketing techniques to earn money online and here I will explain why:

• Cost effective: Marketing on the internet is cheap and you don’t have to worry about the production cost as the product is already developed by the seller. You don’t need a physical business location or hire employees either.
• Global Market: Online marketing gives you the opportunity to reach people all over the world easily.
• No Fees: You don’t need to pay anything to join affiliate programs.
• No Storage No Shipping: You don’t need to worry about storage, packing or shipment of the product. They are all taken care of by the seller.
• No customer support: You don’t need to provide any customer support or deal with consumer complaints as the Seller does that for you.
• Passive income: A regular job can give you a fixed income as long as you continue to work. Depending on your marketing skill Affiliate marketing can create a steady flow of income even when you are not in front of your computer.
• Work from home: If you make enough money then you don’t have to worry about going to work at the same time every day or getting stuck in traffic. You can work in the comfort of your own home.

You need to have a structured plan in place. Affiliate marketing is a business so you will have a much better chance of succeeding if you treat it like one.I am sure I haven’t covered everything so please feel free to share your tips in the comment area below. We can share more and learn more life cant change over night it needs more struggle and tactics .