Making a living on the internet has been and still is the dream of folk from all walks of life, all around the world. One of the most alluring of the online business systems they look into to make that happen is “affiliate marketing“. The most powerful attraction to this online business model is that it’s been said by many to be a great home business that is relatively easy to start with little to no money. If you have found this article you are more than likely one of those folk who are looking for the answer to the very important but basic question “what is affiliate marketing?” So if you are searching for a very easy to understand explanation a brief overview to help you get a little more familiar with what has become one of the most popular methods of online marketers to generate an income today this article is just what you’ve been looking for.
Early Affiliate Origins
When the question”what is affiliate marketing” arises, very seldom is the origin of this marketing concept spoken of. Maybe that’s because there is no specific indication of where the very first transaction using this concept took place. How ever to understand the need and popularity of this online marketing system getting a basic understanding of where it came from would be a helpful benefit.
Before the internet: The term ‘affiliate marketing’ has customarily been applied to an internet based context, however most likely, the idea was around a long time prior to the start of the Internet. The truth is, you can still find instances of offline affiliate marketing today, such as whenever an auto mechanic gives a price cut to an established customer for bringing in a friend. Or when a traditional brick and mortar insurance business would give a commission to a company rep of which there could be many, for each referral that they direct to the mother company that turns into an actual policy sale.
But the truth is, this type of old-time affiliate marketing was never an exact science before the internet application. It featured many concerns in relation to tracking: for instance the referral needed to be monitored in a manner that permitted the affiliate to be paid in an efficient manner, which in most cases wasn’t all that reliable.
Affiliate marketing concept explained
The concept of affiliate marketing is very simple, you sign up to become an affiliate for a product or service. It can be a physical product that has to be shipped, or it can be a digital product that can be downloaded instantly. When you make a sale, you get a commission. It features a performance-based approach to marketing whereby businesses and affiliates interact with each other to generate mutual earnings.
In this particular business system, a company compensates affiliates for every buyer or potential customer introduced by the affiliate’s advertising and marketing efforts. This means that, when an affiliate allies with a business, that affiliate could generate income whenever their marketing or advertising also brings in customers to the parent company or website.
Even though this internet marketing method has been around for some time now, it is the single fastest growing industry on internet. Just a few of the most popular affiliate networks running affiliate programs online include C J Affiliate, Amazon and Clickbank these companies generate tremendous amounts of revenue online yearly.
The more efficient way to build a long term affiliate marketing business is to utilize a website. This allows you to earn money with your website by joining one of many affiliate programs. These businesses offers affiliate programs to generate traffic to their websites. Businesses offer commissions based on the amount of traffic and sales that are generated by your website.
Affiliate marketing is a very powerful and cost effective channel; you only have to pay when a successful transaction will happen. Your business will get benefits by acquiring potential customers.
For affiliate marketing to work it makes use of four basic components, they consist of the merchant, typically known as the retailer or brand. The network that is made of the offers from where the affiliate can select, which is in addition where payments are tracked, calculated and made. The affiliate, who is also known as the publisher, is the one who does the marketing. Then there’s, the customer who purchases the product or service, for a fee that is divided up between the merchant and the affiliate.
Marketing as an affiliate can be done without a website by using methods such as;
- Online discussion communities and forums
- Writing an eBook
- Creating a YouTube video series
- Writing ads or reviews for classifieds websites
- Promoting affiliate products directly through pay-per-click advertisements
- and email
The overall success of the methods above relies on the affiliates ability to include their personal affiliate links into the content of the media they have access to.
What is Affiliate marketing for businesses and companies:
Online Affiliate Marketing is an effective technique to generate business and maximize your sales revenue. As stated before it’s performance based, that would mean that affiliates advertise your product or service, and you then compensate your affiliates for every referral, click, lead or sale. The more effective their marketing efforts the more income they receive. This type of marketing is a very powerful and cost effective channel; you only have to pay when a successful transaction will happen. Your business will get benefits by acquiring potential customers.
The system will allow people to sign up as affiliates for your company, the company will also provide tracking tools to manage sales, commissions, and all the management tools they will need.
Affiliate Marketing Programs and Networks.
As we now know, affiliate marketing allows you to earn a commission by promoting the products and services of others. It is usually a very simple process that anyone can do once they understand the basics.
Affiliate programs have also been known as associate programs and what they are, is actually an agreement involving an advertiser and a publisher or affiliate. Here’s the idea; suppose I have created my own product or service that I’ve been promoting and selling from my own website or blog. I can also invite and signup the willing visitors to my site to promote my creation and pay them a percentage on whenever they make a sale.
Now the affiliate network is an online portal that connects advertisers and a publishers. To put it differently, it’s a center or meeting place for thousands of affiliate programs online.
All tracking, reporting and affiliate payments are carried out by the affiliate network. What makes them virtually all different is that they each can be representing niches, products, promotions and markets that are different from their online counterparts.
In some cases an advertiser will have a position on a number of affiliate networks as well as have their very own affiliate program connected directly to their business.
One of the greatest advantages for joining an affiliate network is that you will be connected to hundreds even thousands of different affiliate programs around the internet that you might not ordinarily find out about.
Many affiliate programs whether they are part of a network or they are directly provided by the merchant site, they follow different models. Some of the various models include:
- Cost Per Action (CPA) This model pays you for specific actions, it can be simple as form submissions, downloads, surveys, etc.
- Cost Per Click (CPC) This model pays for “clicks” – it makes no difference whether your referral traffic helped them generate a lead/sale or not.
- Cost Per Lead (CPL) This model pays for leads and it’s usually a “signup” that has to include the email or credit card verification (because this provides additional value to the leads).
- Cost Per Sale (CPS) This model pays for actual sales of products or services and it means the merchant shares a percentage of the sale value with you.
As an alternative if you have the resources then you can operate an affiliate program yourself – inside your personally owned web or blog site. That’s known as an in-house affiliate program. However, if you don’t possess the components needed or simply don’t choose to deal with your own you have the option to sign up as an advertiser on an affiliate network.
Many sellers offer their own affiliate programs directly from their websites while others work through big networks like:
- CJ Affiliate
Another one of the big companies that can be used by sellers to add their products is Amazon:
The kind of affiliate networks listed above are very well known, widely used and provide you with a large number of varied products, which lets you decide on what sort of products and niche you would like to direct attention to. In addition they provide you with different payment systems, so be sure to understand fully how you will be paid.
To illustrate, with some programs you’ll be able to make anywhere from around 10-100% of the sale. Typically the average is 50% per sale. In some cases the vendor (seller) will pay you immediately and other times there will be a delay when they are able to arranged their own terms and conditions. Your payments will be transferred directly into your PayPal account.
Here’s a great tip: In case you don’t have a PayPal account make sure that you obtain one since a large number of affiliate marketing programs have the choice for pay out using them that is certain to provide you with a lot quicker access to your earnings. It’s no charge, simple, easy and very useful.
Here is the info and sign up link:
When working with some of the more popular networks like Amazon and ClickBank you will have to generate a certain amount of income before you will get a payout of your earnings.
still trying to figure out the answer to what is affiliate marketing here’s something to keep in mind:
With some big networks like Amazon, your commission is generally in the beginning much lower while increasing with the amount of sales you make, this means you need to sell a good deal more before you begin obtaining large commission payment checks.
as mentioned before when working with affiliate marketing and individual websites the product or service owner figures out the commission structure as well as payment timetable so again you should definitely be sure to fully grasp their specific terms and conditions, that they’re trustworthy and reliable also never be be reluctant to ask them questions before you start advertising and marketing on their behalf.
What is affiliate marketing conclusion
Regardless of whether you decide to promote products and services through an affiliate network or an individual website is entirely up to you. While the networks tend to provide a certain level of security regarding payment you can find that many websites owned by individuals are willing to provide generous benefits for their affiliates.
The best balance that I personally have found is to use a variety of different networks and websites because you are able to work with different income streams to enhance your long term affiliates profits and business.
I’m hoping this affiliate marketing explained article has helped you get a better understanding of the answer to the question “what is affiliate marketing”. I know you know that there is so much more helpful information to be shared about this powerful online business system. If you found this information of any value please come back to this website for more useful help and resources.