The easiest way to describe affiliate marketing is the selling of a product or service for a person or company online, and then you receive a commission for the sale.
For example, you are promoting a product priced at $1000, you procure a buyer that purchase that product or service than the company pays you a commission. Commissions could range from 10 percent or better. If the company pays 10 percent, you will be paid $100 for the sale.
Who is The Pioneer of This Business ?
Amazon.com is one of the pioneers of this business model selling millions of books via tens of thousands of Amazon affiliates. Today, affiliate marketing is a very well established method of selling online. The main advantage of affiliate marketing is high sales volume with nominal sales effort at an extremely low cost.
How To Track Affiliates ?
Affiliates usually have a unique tracking ID associated to their registration or website. By adding this html code to their site, Merchants can track where each individual sale came from. The tracking html is usually combined with a cookie or CGI script to allow the Merchants Affiliate Tracking system to collate a database of visitors and sales.
How Affiliates Get Paid ?
It is normal that affiliates get paid one month in arrears and have an access to a monthly report outlining leads, sales and conversions. Affiliates are primarily motivated by money and so they are usually very interested in knowing the conversion rate of the Merchant.
The Most Important Thing in This Business , The Product:
Whether you are a vendor or and affiliate the most important thing is product. When you are looking for an affiliate program there are some things you need to consider before choosing which company you are going to take arms with. The product should be one of quality can also be a service. As long as it’s a product viable service and it offers something of value to the customer.
How to Become an Affiliate ?
If you want to become an affiliate it’s not that hard. You simply go to the website of choice and look for their affiliate link program. Usually what will happen is you will sign up and get a unique affiliate ID along with some banners and links. You then place these on your website so that your potential audience can click on those links which if they purchase, you will receive a commission. Just because you signed up for an affiliate program doesn’t mean that you’re actually going to drive traffic to your website
Why Affiliate Marketing ?
The field of affiliate marketing is probably the quickest developing way to make money online. After all, billions of ordinary people use internet every day. Affiliate marketing gives you the opportunity to target potential customers regardless of their location in the world.
For this reason, it isn’t surprising that a huge number of people make a considerable amount of money through affiliate advertising and marketing. Many skilled affiliate marketers end up making more money in this field than they did in their previous job, and hence some of them even resign their normal 9-5 job and pursue affiliate marketing full-time.
The Pros Of Affiliate Marketing
- Start up is easy- there is no fee to become an affiliate. Create website find an affiliate program, choose a product or service to promote and sale
- If SEO is your key skill, you can focus 100% on rankings and traffic generation. You leave all the customer handling, sales, returns, legal issues and transactions to someone else.
- The affiliate need not invest anything other than some time
- If one area doesn’t work out, the affiliate can quickly move onto another area
- Multiple Income Streams – once you’ve honed your sills in one area, you can apply them to any area you choose. There is no limit to the number of merchants you can work for, so you are free to develop multiple revenue streams. Some merchants will give you ongoing revenues based on customer activities, too.
- Affiliate marketers can work from anywhere, so it’s ideal for those who want to work from home
- The merchant is responsible for providing the materials required to market a product/service; to customer support and shipping – the only thing that remains for the affiliates to do is to promote their website actively.
- Passive income- Affiliate marketing is a great source of passive income.
- Many ways to earn income there is blogging, pay per click, surveys, pay per lead, pay per sale, multiple sites, and tier network marketing
Cons Of Affiliate Marketing
- Unless you have a close relationship with your merchant, you have little control over offers.
- Getting caught up in false advertising this will ruin your reputation and the merchants. Affiliate marketing is legit as long as you are legit.
- There are also some individuals who hijack affiliate links and steal their commissions in the process. The illegal practices involved in this kind of business are false advertising, unlawful use of trade names, logos, or another branding, spamming and hijacking.
- Competition; one of the pros of affiliate marketing is that it is easy to sign up for a program, and so is it for everyone else. There are thousands of members on the same program across the globe, and the level of competition is high.
- There is no magic you will not make money overnight. Affiliate marketing is not a get rich quick scheme
- Self-discipline-With no supervision you can be easily distracted by family and everyday life.
- Yes, it is competitive, but do you know that by the year 2016 3, 4 billion more people will be on the internet. So you can have your share of this audience.
- Final Thoughts
- Thanks for stopping by, I wish you all the best with your online business, and, may you be blessed and prosper. Leave a comment or question, and I will get back in touch with you.